Mubasher Private Companies’ News Highlights

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Private Equities News
Apr 18, 2024

SVC invests in 40 funds, deploys SAR 1.2 bn capital

Riyadh - Sharikat Mubasher: The Saudi Venture Capital Company (SVC) injected investments in 40 funds that invested in more than 700 startups and small and medium-sized enterprises (SMEs), the company unveiled in a press release.The Impact Report show

Private Equities News
Apr 18, 2024

Virgin Mobile Saudi, Hitek to develop smart cities in Kingdom

Riyadh - Sharikat Mubasher: Virgin Mobile Saudi, one of Beyond One Group companies, signed a joint venture partnership with Hitek to provide smart building solutions for potential projects in Saudi Arabia, the company announced in a press release.Vir

Private Equities News
Apr 18, 2024

Saudi EXIM Bank signs reinsurance deals with Swiss entities

Riyadh - Sharikat Mubasher: The Saudi EXIM Bank signed a cooperation agreement for reinsurance with the Swiss Export Credit Agency (SERV) to enhance the competitiveness of non-oil exports in the global markets, a recent statement revealed.The bank al

Private Equities News
Apr 18, 2024

Aljadaan: decisive financial policies bolster sustainability

Riyadh - Sharikat Mubasher: The Saudi Minister of Finance Mohammed Aljadaan affirmed that decisive financial policies play a crucial role in bolstering resilience and sustainability.The minister made these remarks during the Middle East, North Africa

Private Equities News
Apr 18, 2024

Tourism Fund, Karisma Hotels to develop resorts in Kingdom

Riyadh - Sharikat Mubasher: Saudi Arabia’s Tourism Development Fund (TDF) signed a memorandum of understanding (MoU) with Karisma Hotels and Resorts International to enhance the tourism and hospitality sector in the Kingdom.The agreement, signe

Private Equities News
Apr 18, 2024

SVC invests in 40 funds, deploys SAR 1.2 bn capital

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Private Equities News
Apr 18, 2024

Virgin Mobile Saudi, Hitek to develop smart cities in Kingdom

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Private Equities News
Apr 18, 2024

Saudi EXIM Bank signs reinsurance deals with Swiss entities

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Private Equities News
Apr 18, 2024

Aljadaan: decisive financial policies bolster sustainability

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Private Equities News
Apr 18, 2024

Tourism Fund, Karisma Hotels to develop resorts in Kingdom

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Experts Thoughts

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Fintech
Apr 15, 2024

Dubai’s Real Estate Boom; Embracing the Digital Currency Revolution

By: Phil Sheridan, CEO at Berkshire Hathaway HomeServices Gulf Properties 

 

A new phenomenon is emerging in Dubai that is reshaping the city’s real estate sector. Owing to the country’s burgeoning digital currency market, and buoyant real estate sector, a growing number of younger digital currency traders are flocking to the emirate’s shores and converting their digital assets to invest in the city’s property market. This article explores the connection between the trend of currency trading and the thriving real estate market in Dubai among younger investors, underscoring the role played by the United Arab Emirates (UAE) in facilitating this modern financial shift.

 

The Gateway to Digital Currencies

At the heart of this trend is the UAE's progressive stance towards digital currencies. Dubai, a city renowned for its architecture and luxury lifestyle, has become a sanctuary for digital currency traders and investors worldwide. The city's welcoming regulatory environment and the government's forward-thinking policies have fostered a fertile ground for digital asset trading. 

Thanks to the initiatives such as the Dubai Blockchain Strategy and the Emirates Blockchain Strategy, for example, several Dubai banks are now using the blockchain system to enhance security and facilitate digital currency transactions. In 2022, Dubai also established the Dubai Virtual Assets Regulatory Authority (VARA), a regulatory body dedicated to overseeing and protecting virtual asset transactions. Government measures like setting up digital currency zones and providing regulations have boosted investor confidence. As a result, many investors are converting their digital assets into physical assets such as property, thanks to the flexibility offered by UAE’s financial eco-system. 

 

Real Estate, as a Preferred Investment Choice

Why does real estate stand out as an investment option? Dubai’s real estate market offers stability that digital currencies simply can't match. While digital currencies can offer high returns, the risk is also great. That’s not to say that Dubai’s property market does not offer high returns also. Statistics suggest that the volume of transactions in Dubai’s property market grew by 66.3 percent, while their value grew by 72% in 2021, in contrast to 2020, demonstrating the growth of the sector.[1]

If that weren’t enough reason, the fact that property has long proven to be a safe bet for investments during times of high inflation is yet another reason to invest in the city’s property market. According to Euromonitor International, the inflation rate for the UAE in 2022 was 5%. This contrasts with double-digital inflation rates across much of Europe during the same timeframe. Plus, putting money into property is not only about financial safety. For investors, it’s also a way to claim a slice of one of the world’s most attractive cities to live in worldwide, widely known for its safety, cosmopolitan nature, and quality of living.  

 

Global transactions and real estate deals

One advantage of digital currencies is their ability to streamline transactions. In terms of real estate investments, this means that investors can avoid additional charges usually levied by traditional banks, as well as further losses due to exchange rates. The immediate nature and transparency of transactions adds to the appeal making it easier for younger individuals to invest confidently in Dubai’s real estate market, fueling the city’s growth and financial appeal. 

 

Looking ahead

Looking ahead it is evident that virtual currencies will play an ongoing and growing role in shaping Dubai’s property landscape. The UAE’s dedication to creating an environment conducive to digital currencies, combined with Dubai’s reputation as a luxurious real estate hub, indicates that this trend is not temporary but rather an integral part of the city’s economic strategy. With digital currencies reshaping transactions, Dubai’s forward-thinking nature adds to the dynamism of the real estate market and ensures its future growth. As such, digital currency traders can rest assured that choosing Dubai’s property market to invest in is a smart decision to protect their future investments. 

 

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Startup
Apr 7, 2024

El Najjar: Silkhaus expands its digital services in Saudi Arabia to meet the growing demand

Shaimaa Ibrahim 

 

 

The short-term rental market in Saudi Arabia has witnessed rapid development throughout the past few years. Silkhaus is a cutting-edge prop-tech startup that aims to revolutionize and develop the short-term rental scene in the kingdom and the Middle East. It provides an integrated set of services that meet the needs of guests and landlords. 

 

Silkhaus plans to expand its business in the Saudi market in the coming period. Therefore, Sharikat Mubasher had an interview with Sabine El Najjar, VP Commercial & General Manager of Silkhaus Saudi Arabia, to discuss future plans, and share with us her expectations for the future of the short-term rental market in Saudi Arabia, and its leading investment opportunities.

 

What services does Silkhaus provide to real estate owners to manage their properties, and what distinguishes it from traditional rental methods?

 

Silkhaus is a cutting-edge proptech startup dedicated to revolutionising short-term rentals across the Middle East. Founded in 2021, Silkhaus equips property owners to monetise their assets as short-term rentals with the opportunity to earn 20-40% more than regular long-term rentals. 

 

With Silkhaus, once landlords partner with us, we take care of every element, including furnishing, marketing the apartments, securing customers and even maintaining the units. Landlords have access to our advanced landlord portal that gives them full and real time visibility of bookings and earnings. Since our model is extremely flexible, landlords can also choose to book their apartment for their own use and can sell their units vacant on transfer with a minimal notice period, unlike with long term leases.

 

Today we partner with individual property owners as well institutional investors who own dozens of residential units. All together, our managed asset base exceeds $120 million in value, and we operate in three cities across two markets.

 

 

Last January, Silkhaus closed a Pre-Series A round, can you provide us with more

details of this round? How could this investment boost your expansion plans?

 

The pre-series A round is testament to the fundamentals of our business and the backing we have received from Partners for Growth. With our business growing by more than double in 2023, we chose to not dilute equity, but opted for debt financing instead. This allows us to stay well capitalised while remaining extremely focused on how we want to grow our business. 

 

In terms of our plans, the round is to fuel our entry into Saudi Arabia. This means we need to invest extensively in developing our technology for the local market, hire the right talent and build a large network of landlords. 

 

What are Silkhaus’s future expansion plans in the Saudi market?

 

Saudi Arabia is currently our first expansion outside the UAE. We have spent the last 6 months on regulatory set-up, talent onboarding and landlord discussions. We’ve had a successful lead generation campaign that has attracted interested landlords and investors alike. In fact, we see a large demand for short-term options as the Kingdom faces a shortage of hotels and high-quality accommodation. While KSA is attracting significant investment in the real estate and hospitality sector, it will be some time until that supply becomes available. That is why we are working with landlords to upgrade their properties to give guests a world-class experience. From our soft run, we’ve seen the appetite for Silkhaus properties grow. Right now, we remain focused on on-boarding more landlords and ensuring that we are contributing to the vision of the Kingdom for the hospitality and tourism sector. 

 

How do you see the future of the short-term rental market in Saudi Arabia, and what

about the investment opportunities in this market?

 

Globally, the short-term rentals market is worth over $100 billion and in the Middle East, the sector is still in the early stages of growth. For Saudi Arabia, this means there’s a significant opportunity in developing this industry, as well as creating jobs for local talent. 

 

In 2023, Saudi Arabia saw$74 billion worth of real estate deals completed. A lot of these will be deployed towards managing the shortages faced by visitors. As Saudi Arabia attracts global tourists for business and leisure, and with a number of major events scheduled, including the FIFA World Cup in 2030, we anticipate a major demand for short-term rentals. This will be a key driver in attracting investments into the real estate sector, while also generating strong returns for property owners. From our day-to-day conversations with industry veterans, we’ve also seen an interest from large developers that were historically more traditional to enter this space

 

In your opinion, how will digital technologies support the short-term rental market in the Gulf region, and Saudi Arabia in particular?

 

Technology is at the core of what we do, whether you’re a guest or a landlord. For guests, technology is embedded in every part of their journey, from discovery and booking, to check-in using digital locks all the way to our digital concierge service and our in stay strategic partners that are embedded into our offering for a seamless customer experience.

 

For landlords, Silkhaus leverages technology to provide end-to-end property management solutions for short-term rentals, managing every aspect from bookings to distribution and from operations to the guest experience. With this, landlords do not need to get involved in the day-to-day operations of their properties, but still have complete visibility of its management. 

 

Our technology powers short-term rentals and has attracted real estate owners ranging from institutional entities with mass holdings to individual retail owners with single apartments.

 

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