Stake is a startup that allows investors from around the world to purchase fractions of rental properties in Dubai in order to collect income from rent proceeds. Stake has attracted over 42,000 registered investors from 80 countries since launching in 2020. The company recently raised $12 million in funding to expand its operations to other Middle Eastern markets like Egypt and Saudi Arabia. Stake aims to make real estate investing more accessible and liquid by allowing investors to purchase affordable property shares that can easily be passed to other investors. Currently, Stake manages over 40 properties worth $17.9 million and has paid out over $272,000 in rental income to investors.

1. Dubai is in a period of expansion and on a quest to attract as much investment in real
estate as possible. This includes taking some novel approaches, such as that offered by
startup Stake. Through Stake, investors from across the globe can purchase fractions of
rental properties in Dubai to collect a regular income from the rent proceeds.
Stake began its operations in 2020 and in just a short period has attracted investors
from more than 80 countries. Founders Manar Mahmassani, Ricardo Brizido, and Rami
Tabbara raised $8 million in a pre-Series A round from big names like Vivium Holdings,
BY Ventures, and MEVP. This money will help Stake expand its operations into other
growing Middle Eastern markets, namely Egypt and Saudi Arabia. This money is on top
of a $4 million seed round in 2021.
The Idea Driving Stake and Its Mission to Expand Access to Investment
The individuals behind Stake are experienced in the real estate industry. They had
recognized that many people want to get involved with the property markets
throughout the Middle East, but it can be impossible for most given the high upfront
costs and the massive commissions that go to brokers and developers. Stake seeks to
make investment in real estate both more accessible and more liquid with its unique
approach. Through Stake, users can purchase affordable shares in rental properties.
These shares can easily be passed to other investors, making it ideal for people who do
not want to commit large sums of money to this particular asset class.
Stake only lists premium properties on its platform and those that are already
generating a rental income. Before acquiring a property, Stake takes several factors into
account, such as the quality of the build, the view provided to residents, the current
number of tenants, and the location. If the property currently has vacancies, the startup
uses an analytical approach to figure out how quickly they can be filled, which
translates into how fast the property can begin producing income. The startup remains
interested primarily in those properties with the promise to begin generating income
nearly instantaneously. The good news is that such properties are not difficult to find in
Dubai. In less than two years, Stake has paid out more than AED 1 million ($272,249) in
rental income to its investors through monthly payments.
The Exciting Growth of the Stake Investment Platform
Currently, Stake manages more than 40 properties. Altogether, these properties are
worth AED 56 million ($17.9 million). Since its inception, the startup has secured a
monthly growth rate of about 17 percent in terms of both investors and assets under
management. Such a high rate of growth would be hard to sustain within one market, so

2. it makes sense that Stake plans to expand into new markets to attract even more
investors and encourage additional investments from its current users. The platform
now has more than 42,000 people registered, with about 2,100 active investors. The
investor base includes people from countries across the world. However, the nations
with the most representation among Stake investors are India, the United Kingdom,
Kuwait, Saudi Arabia, and the United Arab Emirates.
The rate of growth relates at least in part to the ease of use. Users can register for an
account in a matter of seconds and then begin investing for as little as AED 500, roughly
$136. Dubai has rules that limit the amount of investment that can come from an
individual, so users cannot purchase more than AED 183,500 ($50,000) in shares in one
year.
Stake imposes some additional limits. For example, one individual investor cannot own
more than one-third of a particular property. This rule helps ensure that gains are
spread evenly among investors and that no one investor has significantly higher returns
than another. Stake creates a special purpose vehicle for each property to make a deed
possible since Dubai has a rule that only four investors can be included on a deed. The
investors in a particular property can vote to sell it if the value increases significantly in
the market.
A Closer Look at the Stake Business Model and How It Makes Money
The Stake business model relies on fees to generate an income. Whenever an investor
purchases a stake in a property, the company charges a 1.5 percent fee. Investors also
pay a 0.5 percent fee annually for maintenance. Other fees may also apply, including an
anti-money laundering fee. If investors decide to sell their property, they will need to
pay a 2.5 percent exit fee. In addition, Stake takes a 15 percent cut from any profit in the
sale of a property. Despite all these fees, Stake has not yet become profitable. However,
the startup has achieved 470 percent year-on-year revenue growth. All of the money
that comes from investors for the actual purchase of real estate gets reinvested in new
properties.
Moving forward, Stake plans to create a second-day trading platform and expand into
new territories. This platform will make it possible to sell stakes in property to other
investors directly. Also, the startup is investigating ways of allowing investors to buy
into vacation properties that would go on platforms like Airbnb, generating an income.