Real estate crowdfunding sites cannot be equated with stock exchanges. While both can be generally classified as marketplaces with similar investment goals, the former does not trade and deal with stocks, bonds, and other securities.
Additionally, investment opportunities listed in crowdfunding platforms are not to be treated as public offerings, such as initial public offerings (or IPOs), although the aim to raise capital for property developments may be the same. And while these may be subject to laws governing securities, crowdfunded investment opportunities are not subject to fluctuations that characterize the stock-exchange environment.
Moreover, crowdfunded opportunities are not mutual funds and hedge funds, although the basic attributes of collective investment may be similar.
As with most other crowdfunded real estate initiatives, HBR projects are financed by investors via “private” placements.
Being the pioneer of real estate crowdfunding in the UAE and the greater Middle East and North Africa (or MENA) growth corridor, the HBR portal has yet to submit to crowdfunding-specific laws in the UAE and the region.
However, to a certain extent, HBR portal operations are subject to the federal-level UAE Securities and Commodities Exchange Law. At the emirate level, these are governed by implementing rules and regulations of the Collective Investment Law, which applies in the jurisdiction of the Dubai International Financial Centre (or DFIC) free zone.