TLDR:
Key Points:
- Saudi Aramco and Mubadala invested $14 million in Dubai-based digital real estate platform, Stake, in its Series A funding round.
- Stake plans to enter the Saudi Arabian market and aims to become the first platform enabling individuals outside the kingdom to invest in local real estate.
Article Summary:
Saudi Aramco and Mubadala have made a significant investment of $14 million in Dubai’s real estate sector by backing Stake, a digital platform for real estate investment. The funding round, led by Saudi Aramco’s venture capital arm and Mubadala Investment Co., also included Republic and Middle East Venture Partners. Stake plans to utilize a portion of the funds to enter the Saudi Arabian market and enable individuals outside the kingdom to invest in local real estate.
The platform, which employs a fractional ownership model, has over 500,000 users, with half of them from outside the United Arab Emirates. Co-founder Manar Mahmassani expressed optimism about the Saudi market, citing pent-up demand and opening up to foreign ownership as significant opportunities. Stake has raised a total of $13 million from previous funding rounds and has acquired over 200 properties worth 355 million dirhams since its launch in 2021.
The investment from Saudi Aramco and Mubadala aligns with broader economic strategies in the region, including Saudi Arabia’s Vision 2030 initiative to diversify the economy away from oil dependency. Additionally, Mubadala has been actively investing in various sectors, including a private credit deal with Goldman Sachs. The investment in Stake reflects a diversified approach to seeking high returns across different asset classes in the region.
