Dubai-based digital investment platform Stake is making strides in Saudi Arabia, offering fractional property ownership with investments starting at just $134. Backed by major investors like Mubadala Investment Co. and Saudi Aramco’s venture capital arm, Stake plans to acquire properties worth SAR 1 billion ($266 million) within six months, capitalizing on growing foreign interest in Saudi’s real estate sector, which has been largely inaccessible to outsiders.
Expanding in Saudi Arabia:
Stake is finalizing the acquisition of a fully-leased Riyadh mall for SAR 187 million and a 140+ unit residential tower for SAR 200 million, according to co-founder Rami Tabbara. The official launch in Saudi Arabia is set for December 9, following a successful soft launch that saw “amazing demand” from investors drawn by 7-8% rental yields, strong demand, and capital appreciation.
A Growing Market with High Potential:
Saudi Arabia’s property market is gradually opening to foreigners. While long-term residency is now offered to those purchasing properties worth SAR 4 million, access remains limited. The market, however, is ripe for opportunity. According to Knight Frank LLP, Riyadh apartment prices have surged 62% in three years, while villa prices rose 37%.
The kingdom’s housing demand continues to grow, driven by a predominantly young population. An estimated 115,000 homes per year will be needed over the next six years to meet demand, as the government pushes to boost homeownership under Vision 2030, Crown Prince Mohammed bin Salman’s ambitious initiative to diversify the economy away from oil.
Stake’s Journey and Future Plans:
Since its launch in 2021, Stake has raised $28 million, acquired over 330 properties in Dubai worth $150 million, and amassed a user base of 832,000 across 200+ nationalities, according to its website.
Next year, the firm aims to expand into Abu Dhabi, further solidifying its presence in the Gulf. “We ask investors to hold properties for five years for optimal appreciation,” Tabbara said. However, early exits are possible after a one-year lock-in period through Stake’s platform by reselling stakes to other investors.
Opening New Doors for Foreign Investors:
Saudi Arabia’s real estate market is attracting attention from international companies that are opening offices and moving staff there. With rising property values, strong government support, and platforms like Stake making investment easier, foreign investors now have new opportunities to enter the Gulf’s largest economy.
