The UAE’s real estate market is experiencing significant growth, with Dubai rents increasing by 20% in 2024, returning to pre-pandemic levels, and sales rising by 18%, according to Deloitte. This trend is expected to continue in the coming years.
This demand is also impacting Abu Dhabi, prompting the city’s sovereign wealth fund, Mubadala Investment Company, to invest in Dubai-based Stake. Stake raised $14 million in a Series A round, led by Middle East Venture Partners, with contributions from Aramco’s Wa’ed Ventures and Republic.
Founded by Manar Mahmassani, Rami Tabbara, and Ricardo Brizido in 2020, Stake plans to use the funds to expand into Saudi Arabia and Abu Dhabi, and to offer more investment options in Dubai. To date, the startup has raised $26 million.
Abu Dhabi’s investment in Stake aligns with its goal to diversify its economy away from oil and gas by boosting real estate investment. Stake’s platform allows people to invest in property shares and earn rental income and profits from sales. Investors can also sell their shares in a secondary market every six months.
Stake currently manages over 200 properties with a global investor base, primarily from the UAE, Saudi Arabia, and Kuwait. Around 12% of its investors are from the U.S., Canada, and the U.K.
Stake initially planned to expand into Saudi Arabia and Egypt in 2022 but delayed due to economic conditions. This year, they partnered with the U.S.-based Republic to attract more international investors. Stake offers investors committing at least AED 2 million (~$545,000) a 10-year renewable residency visa in Dubai through a program introduced in 2019.
The company claims to return 4%-7% to investors through rental income and has paid $4.5 million in rental income to date. The average property investment is $1,500, with investors typically investing $5,600 through the platform.
In Saudi Arabia, Stake will compete with platforms like Awaed and Aseel. Stake plans to use its experience to offer similar investment products in Saudi Arabia and aims to break even in Dubai by the end of the year and become profitable next year. The company is also exploring partnerships to enable Middle Eastern investors to invest in U.S. properties.
