Dubai-Based Platform Lets You Invest in Saudi Real Estate with Just $134:
Company Supported by Investors Including Mubadala and Aramco's Venture Capital Arm
Stake, a fractional ownership company, plans to make property deals worth SAR1 billion ($266 million) in Saudi Arabia over the next six months. This move aims to attract more foreign investors who are interested in entering a market that was mostly closed to outsiders.
The Dubai-based digital platform is already buying a fully-rented mall in Riyadh for SAR187 million and plans to purchase a residential tower with more than 140 apartments for SAR200 million, said Rami Tabbara, co-founder, in an interview.
Stake allows people to invest in property starting at about $134. The company is supported by investors like Abu Dhabi’s sovereign wealth fund Mubadala Investment Co. and Saudi Aramco's venture capital arm.
Since its soft launch in Saudi Arabia, Stake has seen "amazing demand" from investors wanting to enter the market, Tabbara said. "Investors want to participate because they see strong demand, property value increases, and high rental returns of up to 7 to 8 percent," he added.
Stake will officially start operations in Saudi Arabia on December 9.
Saudi Arabia, the largest economy in the Gulf, has long been closed to outside investors but is slowly opening its property market to foreign buyers. The country has started giving long-term residency to foreigners who buy property worth 4 million riyals, but it is still not easy for buyers to access the market.
However, for those looking to invest in the new market where multinational companies are opening offices and moving staff, the opportunity is attractive. In Riyadh, apartment prices have increased by 62 percent in the last three years, while prices of single-family homes, known as villas, have risen by 37 percent, according to Knight Frank LLP.
Saudi Arabia needs to build 115,000 homes each year for the next six years to meet the high demand from a mostly young population. The government aims to increase homeownership, the company said in a report last month.
Saudi Arabia has outlined large investment and spending plans to support Crown Prince Mohammed bin Salman's Vision 2030, which aims to diversify the economy away from oil.
Since its start in 2021, Stake has raised $28 million and bought over 330 properties in Dubai worth around $150 million, according to Tabbara. It has 832,000 users from over 200 nationalities, according to its website.
Stake plans to launch in Abu Dhabi early next year, Tabbara, who is also the co-chief executive officer, said.
Stake pays investors rental income and requires a one-year lock-in period. "We ask investors to hold on for five years for property value increases," he said. "But for those who want to leave after one year, they can do it on the platform by selling their share to others."
