UAE-Based Silkhaus Secures Growth Round To Expand To KSA
The seven-figure growth round was led by the Dubai-based venture capital firm Nuwa Capital as well as the venture capital fund of Dubai Integrated Economic Zones Authority, Oraseya Capital.
UAE-based Silkhaus, a proptech startup in the short-term rental market across the Middle East and Asia, has wrapped up an undisclosed seven-figure growth round led by the Dubai-based venture capital firm Nuwa Capital as well as the venture capital fund of Dubai Integrated Economic Zones Authority, Oraseya Capital.
Other investors include the Kuwaiti venture capital firm IMPULSE International, the Singapore-based equity firm Yuj Ventures, the London-based venture capital and private equity firm Nordstar, and family offices.
Founded in Dubai in 2021, Silkhaus’ platform claims that it helps property owners achieve returns 20-40 percent higher than traditional long-term rental models, solidifying its role in the region’s growing rental sector.
The new investment is set to support the company’s expansion into Saudi Arabia, where it recently launched bookings. Led by Sabine El Najjar, KSA managing director and vice president (VP) of commercial, and Peter May, VP of operations, the company’s operations in the Kingdom cater to business and leisure travelers seeking quality accommodation amid rising market demand.
Last year, the proptech platform concluded a multi-million-dollar pre-Series A financing from San Francisco-headquartered Partners for Growth (PFG). In 2022, Silkhaus secured a US$7.8 million seed round with participation from Nuwa Capital, Nordstar, Global Founders Capital, Yuj Ventures, Whiteboard Capital, and VentureSouq, as well as international family offices, business leaders, and global proptech entrepreneurs.
In an interview with Inc. Arabia, Ankit Shah, co-founder and CFO of Silkhaus, said that this expansion into Saudi Arabia presents exciting new opportunities for the company, which he told us has seen gross booking values grow over 100 percent year-on-year since its launch, with guests from more than 120 countries, including the UK, the US, and Russia.
He also noted that significant regional demand is driving bookings, with one-third coming from the GCC, primarily Saudi Arabia and the UAE. “Both the UAE and KSA together exceed $2.5 billion in size and are growing 46 percent per year," he said. "The short-term rental market in KSA is still in its early stages, presenting both challenges and exciting opportunities. Regulations are evolving, infrastructure is still developing, and distribution channels are more fragmented compared to the UAE. However, the Kingdom’s rapid economic growth and ambitious transformation make this an exciting market for us to enter.”
He added that as Saudi Arabia opens up to business and leisure tourism, the market is changing as well. “One key distinction is the nature of supply," Shah explained. "Riyadh, for instance, has traditionally been dominated by larger units catering to families. With the country’s economic diversification and increasing international appeal, we are seeing a shift toward smaller apartments designed for corporate travelers. While demand is becoming more diverse, larger units in Riyadh continue to command higher price points than the UAE average.”
While Shah noted rising demand in the Riyadh neighborhoods of Al Sahafa, Al Nada, and Qurtuba, especially for one-bedroom apartments, in Dubai, on the other hand, he reported that properties in neighborhoods like Dubai Production City, Al Barsha, and Dubai Creek Harbor often achieve occupancy rates above 90 percent, while high-end areas such as Emaar Beachfront report nightly rates up to 50 percent above the city average. As for Abu Dhabi, neighborhoods like Yas Island, Al Raha, and Saadiyat Island deliver strong rental yields with nightly rates similar to Dubai’s.
A Silkhaus apartment. Image courtesy Silkhaus.
Currently, Silkhaus manages properties worth over $200 million across Dubai, Abu Dhabi, and Riyadh, and it utilizes technology to optimize property returns for landlords and ensure efficient booking options for guests. “As a tech-enabled company, we have built proprietary systems that enhance transparency for landlords and simplify the booking experience for both private and corporate travelers,” Shah said, noting that this approach is serving it well as it expands into Saudi Arabia. “To ensure our success in KSA, we’re focusing on leveraging our tech-enabled systems to bring operational efficiency and consistency to a fragmented market. Additionally, we aim to build strong partnerships, cater to the evolving needs of both family and corporate travelers, and stay agile as the market matures."
The company also boasts a strong sustainability component, allowing it to cater to eco-conscious travelers. “Silkhaus is also fully committed to sustainability, and it has taken proactive steps to lead by example," Shah said. "We were the first short-term rental company in the region to undergo a green audit, evaluating our standards against competitors and the wider hospitality industry.”
Shah also pointed out that by utilizing advanced systems, Silkhaus can optimize operations remotely, reducing unnecessary travel and lowering its carbon footprint. “We view sustainability not just as a responsibility, but as an opportunity," he said. "Guests today are increasingly prioritizing eco-conscious choices, and adopting sustainable practices enhances both operational efficiency and market appeal.”
In addition to sustainability, the changing needs of international and regional travelers are increasingly blurring the lines between leisure and business travel, making it key for providers to shape their offerings to cater to both simultaneously, said Shah. “One of the most significant trends in recent years has been the blending of leisure and business travel, particularly in the post-COVID-19 era," he said. "With the rise of remote workers and digital nomads, travelers increasingly seek destinations that offer both professional opportunities and an exceptional lifestyle."
To fulfill this need, Silkhaus selects properties in prime locations that are designed as live-work environments. It also caters to travelers looking for authentic, local experiences. “We’ve observed a growing interest among travelers in experiencing the local culture," he said. "To enhance this, we’ve introduced welcome boxes featuring regionally inspired products as a gift for our guests. We’ve also partnered with local businesses and brands to provide expanded services, such as food delivery, taxi bookings, and more, giving guests a seamless and enriched stay."
For property owners looking to maximize returns, Shah emphasized the importance of professional management. “The short-term rental market in the GCC is booming, but so is the competition — especially in Dubai, which has the highest concentration of professional short-term rental operators in the region," he said. "Guests here expect a level of service comparable to five-star hotels. For property owners, working with a professional operator like Silkhaus ensures that their assets are managed efficiently while maximizing returns—which is 20-40 percent more than regular rental models.”
Shah also highlighted the role of location in rental success. “A common question we hear is, ‘What type of property and location should I invest in?’ The reality is that there’s a customer for every type of apartment in every area — what matters is giving them a reason to choose your property over others," he concluded.
Pictured on image: The Silkhaus leadership team, from left to right: Ankit Shah, co-founder and CFO, Sabine El Najjar, KSA Managing Director and VP Commercial, Aahan Bhojani, co-founder and CEO, and Peter May, VP. Courtesy Silkhaus.
