Dubai based Stake raises $14 million to bring fractional properties investment platform to Saudi Arabia
Dubai-based property investment platform #Stake has successfully raised $14 million in a Series A funding round. This significant investment was led by Middle East Venture Partners (MEVP), with participation from aramco’s Wa'ed Ventures, private investment platform Republic, and the sovereign wealth fund Mubadala Investment Company. The funds will be utilized to expand Stake’s operations to Saudi Arabia in the coming months and to Abu Dhabi next year. Additionally, Stake plans to offer more investment options in Dubai, including commercial real estate.
Stake was founded in 2020 by Manar Mahmassani, Rami Tabbara, and Ricardo Brízido. With this latest round, the company has raised a total of $26 million to date. The UAE real estate market is booming, with Dubai seeing a 23% year-on-year rent increase and an 18% rise in sales, according to Deloitte. This growth is spilling over to neighboring Abu Dhabi, making it an opportune moment for Stake to expand. The platform’s entry into Saudi Arabia also positions it to tap into a market with billions worth of recently completed and under-development properties.
Stake’s innovative platform allows users to buy shares in managed properties, earning rental income and a share of the profits if the property is sold. The platform currently manages over 200 properties with a diverse investor base, primarily from the UAE, Saudi Arabia, Kuwait, and a notable 12% from the U.S., Canada, and the U.K.
In partnership with the Dubai International Financial Centre (DIFC), Stake offers international investors committing at least AED 2 million (~$545,000) a golden visa, a 10-year renewable residency visa in Dubai. This initiative has significantly boosted foreign investment in the region.
Stake’s expansion into Saudi Arabia and Abu Dhabi marks a pivotal growth phase, potentially positioning it as a leading fractional property investment platform in the Middle East. The company aims to break even in Dubai by the end of this year and achieve profitability next year. Furthermore, Stake is exploring partnerships to allow Middle Eastern investors to invest in properties in the U.S., diversifying their portfolio and mitigating regional economic volatility.
The entry into Saudi Arabia comes with its challenges, as the market is dominated by local platforms like Awaed and Aseel. However, Stake’s experience and established model in Dubai could provide a competitive edge.
The article on TechCrunch in the first comment.
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