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Stake Aims to Expand its Fractional Property Investment Platform to Saudi Arabia and Abu Dhabi

Image Credits: Stake
By: Headliners News / July 9, 2024

Meet the Dubai-based startup, Stake, a fractional property investment platform, is planning to expand its operations to Saudi Arabia and Abu Dhabi, fueled by a recent $14 million Series A funding round. The funding was led by Middle East Venture Partners with participation from Mubadala Investment Company, Aramco’s Wa’ed Ventures, and private investment platform Republic. The UAE’s booming real estate market, especially in Dubai, and rising demand in neighboring regions like Abu Dhabi, have created a fertile ground for Stake’s expansion.

Founded in 2020 by Manar Mahmassani, Rami Tabbara, and Ricardo Brizido, Stake aims to democratize real estate investment by allowing individuals to buy shares in properties. Investors can earn returns from monthly rentals and potential profits from property sales. The real estate financial tech platform also offers a secondary market called Exit Windows, enabling investors to sell their stakes every six months.

Recent Achievements

  • Series A Funding: Raised $14 million, bringing total funding to $26 million.
  • Property Management: Manages over 200 properties.
  • Global Reach: Investors from the UAE, Saudi Arabia, Kuwait, the U.S., Canada, and the U.K.
  • Rental Income Returns: Approximately 4%-7% return through rental income, with $4.5 million paid out to investors.

Expansion Plans

Saudi Arabia: Stake plans to leverage its expertise from Dubai to offer a unified investment product in Saudi Arabia. Despite competition from local companies like Awaed and Aseel, which offer property investments through funds, Stake aims to introduce its fractional ownership model to the market. This move aligns with Saudi Arabia’s growing real estate sector, particularly in high-value properties recently completed or under development.

Abu Dhabi: Given the city’s growing status as a residential hub for those working in Dubai, Stake’s expansion into Abu Dhabi is strategic. The city’s appeal lies in its lower living costs compared to Dubai and its efforts to diversify revenue streams away from oil and gas production. Abu Dhabi’s sovereign wealth fund, Mubadala Investment Company, participating in Stake’s Series A round, highlights local support for such initiatives.

Strategic Initiatives

  1. Golden Visa Program: In partnership with the Dubai International Financial Centre (DIFC), Stake offers a golden visa to investors committing at least AED 2 million (~$545,000). This initiative has been instrumental in attracting foreign investment into Dubai’s real estate market.
  2. Partnership with Republic: A collaboration with U.S.-based Republic aims to attract more international investors to Stake’s platform. This partnership underscores Stake’s commitment to broadening its investor base beyond the Middle East.
  3. Commercial Real Estate in Dubai: Stake plans to diversify its offerings in Dubai by including commercial real estate investments, providing more options to investors.

Competitive Edge

Stake differentiates itself from competitors by building its own infrastructure rather than relying on fintech SaaS vendors. This approach allows for greater control and customization of its services, ensuring a seamless experience for users. Additionally, the company’s focus on financial literacy and budgeting tools further enhances its value proposition to young investors.

Future Prospects

Stake aims to break even in Dubai by the end of the year and achieve profitability by the next year. The fast-growing startup is also exploring partnerships that would allow Middle Eastern investors to invest in international properties, particularly in the U.S. This global expansion strategy positions Stake as a leading player in the fractional property investment space.

Stake’s ambitious expansion into Saudi Arabia and Abu Dhabi, backed by significant funding and strategic partnerships, reflects its commitment to democratizing real estate investment in the Middle East. By offering innovative investment solutions and leveraging local support, Stake is well-positioned to capitalize on the region’s booming real estate market and drive its growth forward.

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