SmartCrowd Holdings, a firm focused on fractional real estate investments, has been issued a Fintech experimental license by the Saudi Capital Markets Authority (CMA).
SmartCrowd is now focused on following through with business requirements for the launch of its Real Estate Funds Distribution Platform, making alternative assets a lot more accessible to the public within Saudi Arabia.
Saudi Arabia’s residential real estate market is considered to be a large untapped sector providing a good opportunity for local and international investors, with expected market growth (CAGR) of over 9.74% between the years 2022 – 2027.
Valued at SAR 156 billion last year (according to data/research from Knight Frank), the real estate market is set to expand considerably, in line or consistent with the nation’s Vision 2030, the fast pace of ongoing developments, and the nation’s constant efforts to diversify its economy away from dependence on oil and gas revenues.
Abdullah A. Al Othaim, CEO of Mad’a Investment, a Saudi company and lead investor in SmartCrowd’s bridge round, stated:
“SmartCrowd’s expansion into Saudi Arabia provides an ideal opportunity for locals to diversify their portfolio and global investors to take advantage of the thriving Saudi real estate market. The current global markets are facing major challenges. SmartCrowd provides an opportunity to diversify against uncertainty since the real estate market is the most favorable due to its simplicity and lower volatility.”
With head offices located in Abu Dhabi as part of Hub71’s tech ecosystem, SmartCrowd’s expansion into Saudi Arabia aligns or is consistent with its goal of making real estate investing more accessible to everyone by allowing individual consumers to invest in income-generating properties collectively.
Since its launch, the platform has funded more than 75 properties worth more than AED 65 million, distributed over AED 3.2 million in rental income, and exited an investment property with a return of 39.25%, demonstrating a full investment cycle.
SmartCrowd is also among the few wealthtechs in the area that has generated sizable returns to its investors, making the product attractive to its users, as demonstrated by its 65% re-investment rate.
Siddiq Farid, CEO and Co-Founder at SmartCrowd, said:
“With the newly granted Saudi license, SmartCrowd has solidified its position as a major regional player. In line with increasing demand and investor appetite for diversified real estate opportunities, SmartCrowd will continue to introduce innovative products and enter new regional markets.”
SmartCrowd’s platform users are 80% UAE-based. The other 20% come from all over the globe (including New Zealand and Australia) and are using SmartCrowd to create a diversified real estate portfolio.
Having experienced steady growth in AUM and investors during the past 2 quarters, SmartCrowd said it would be securing additional capital to accelerate its business expansion efforts.