Stake raises $14m to open Saudi real estate investments to global users

Investing in Real Estate: Unlocking New Avenues

Investing in real estate has long been considered a lucrative endeavor due to consistently high property appreciation rates. However, the illiquid nature of the market and the substantial down payment requirements often render property investments inaccessible to smaller investors. To address these challenges, alternatives such as real estate investment trusts (REITs) and mortgage-focused investment groups have emerged, offering more accessible pathways for those looking to invest in real estate.

Digital platforms have also revolutionized real estate investing, providing new opportunities for investors worldwide. Stake, a digital platform that enables investors to participate in income-generating real estate deals in Dubai, exemplifies this trend. Recently, Stake announced it had raised $14 million in a Series A funding round. This capital infusion aims to support the company's expansion into Saudi Arabia, making it the first platform to offer real estate investment opportunities to individuals outside of the country. This funding round was led by Middle East Venture Partners, with contributions from Aramco’s Wa’ed Ventures, Al Jomaih Holding, Republic, and Mubadala Investment Company, Abu Dhabi’s sovereign investor.

Manar Mahmassani, co-founder of Stake, highlighted the significant growth potential in Saudi Arabia, citing "huge tailwinds from pent-up demand from the local population and opening up to foreign ownership." Since its inception three years ago, Stake has amassed over half a million users and funded more than 200 properties. With the new funding, the company plans to bolster its presence in Saudi Arabia by increasing its local personnel to 15 by the end of 2024, according to a report by Bloomberg. This strategic expansion underscores Stake’s commitment to making real estate investing more accessible and profitable for a broader audience.