Siddiq Farid is the chief executive and co-founder of Smart Crowd, which he set up after struggling to invest in property in the UK. Antonie Robertson/The National .
Siddiq Farid is the chief executive and co-founder of Smart Crowd, which he set up after struggling to invest in property in the UK. Antonie Robertson/The National .
Siddiq Farid is the chief executive and co-founder of Smart Crowd, which he set up after struggling to invest in property in the UK. Antonie Robertson/The National .
Siddiq Farid is the chief executive and co-founder of Smart Crowd, which he set up after struggling to invest in property in the UK. Antonie Robertson/The National .

Generation Start-up: Smart Crowd helps micro-investors build wealth, brick by brick


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“Real estate has been used by the wealthy for centuries to accumulate and preserve capital and the average Joe has been left out."

These are the words of Siddiq Farid, the chief executive and one of three co-founders of the real estate crowdfunding platform, Smart Crowd.

"This is our attempt to solve many things, but at the same time tackle this income inequality," he says, in an interview with The National in Dubai.

It’s a profound ambition for a start-up, but crowdfunding is in many ways the epitome of open democracy - a digital fundraising tool to empower citizens to take ownership of things they previously had no access to.

In the case of Smart Crowd, the platform enables fractional ownership of real estate. Investors can purchase a stake in a rental property for as little as Dh5,000 ($1,300), ‘co-owning’ the asset along with tens, hundreds (or thousands, depending on the size and value of the unit) of other people.

They can hold their stake for as long as they wish, collecting the rent from it, or sell it and use the proceeds to invest in something else listed on the platform. Or they can use accumulated returns to buy a property on their own.

“The idea is simple: the platform lowers the entry barrier for people to start building a portfolio of assets to generate a secondary source of income and accumulate wealth over time. Our slogan is ‘Unlock Your Wealth Potential’,” Mr Farid explains. If the platform is successful, the same concept could be used for other assets, from cars to restaurants, to mixed-use schemes. “We are a long way from that,” he laughs.

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Read more:

Dubai property transactions slide in the first half of 2018

Why Gulf investors should buy and hold UAE property

What makes Dubai's real estate market of today so different from 2008

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Smart Crowd is licensed by the Dubai Financial Services Authority, the regulator of Dubai International Financial Centre, Dubai’s financial free zone, to provide crowdfunding services for real estate. It won regulatory approval in January, obtained an operating licence in April, and in June completed its first transaction - the acquisition of a Dh365,000 studio in Remraam generating a gross annual yield of 10.8 per cent (approximately 8.6 per cent with fees), the founders say.

The transaction was conducted in a controlled environment as part of the DFSA-regulated ITL (Innovation Testing Licence) initiative for fintech start-ups. Smart Crowd is part of the DIFC’s Fintech Hive accelerator programme.

The average size of investment made in the Remraam studio is significantly higher than the Dh10,000 to Dh30,000 range Smart Crowd will target when it launches full-scale operations this September. The founders say they are courting investors for a seed funding round, with lead investor Shorooq Investments, an Abu Dhabi-based investment fund, already committed. They decline to say how much they want to raise but plan to use the money to hire new technology and marketing staff. There are around 15 employees at present.

Mr Farid, a corporate finance executive who has worked for Deloitte, KPMG and EY, spotted a gap in the market for a Middle East property crowdfunding website in 2016, just after the UK had voted to leave the European Union. With the pound diminishing in value, Mr Farid wanted to invest money into UK real estate.

However, he failed to find anything he could afford, and for personal reasons did not want to use mortgage financing. He tried to find family and friends to pool money but found it hard to source people with the same requirements and risk appetite.

“It dawned on me it would be great to find somewhere to source like-minded people, a community that brings people together in an easy fashion. And I thought, hang on, there’s a business here,” he says.

Real estate crowdfunding exists but not in the region, according to Mr Farid. Yet there is high demand. “Traditionally if you look at the Arabian Gulf, people favour hard assets - real estate or gold - but few people have the means to access them.” He cites a report by the humanitarian charity Oxfam in January, which claims real estate is the largest asset class in the world, worth $217 trillion, yet only 12 per cent of the world’s population has any sort of ownership of it.

In 2017, he began hatching a business, teaming up with Musfique Ahmed, the digital and disruptive technology leader at EY, and Abdul Faizal, former chief executive of Dubai real estate agency ERE Homes, who sold his business to Gulf Sotheby’s International Realty in 2016.

All three put their own start-up money into the firm - they decline to reveal how much but say a “significant chunk of money” was needed to hire lawyers and others to navigate the DFSA’s regulatory and compliance procedures, and to contract an Italian technology company to build the website last year. Securing regulatory approvals was deemed crucial in gaining the trust of prospective investors.

“As a chartered accountant, it’s sad to hear horror stories of people making bad investment decisions because of inefficient products or getting caught up in scams,” Mr Farid says. “So we knew whatever we did we had to make sure investors’ interests were protected. That’s why the platform is a financially regulated structure.”

Opportunities listed on Smart Crowd are vetted according to a 100-point screening tool that evaluates the asset based on quantitative factors such as rental yield, as well as quality and serviceability (how easy it is to rent and sell). The aim is to use artificial intelligence to automate this process.

The founders work with real estate brokers to source assets that are already rented out, with the necessary property and Ejari registrations taken care of. “Having been in the market the last 10 years I know the credible agencies,” says Mr Faizal.

“At the moment we’re focussing on high-rental yield investments, which mostly come from the mid-tier market in second-tier locations. We’re looking at assets with higher capital appreciation in prime locations such as Dubai Marina and the Palm Jumeirah as second-transaction opportunities,” he says. Smart Crowd would only list off-plan properties if they were due to complete in less than six months, to minimise the risk.

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Read more:

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'We bought a Scottish castle and make Dh300,000 renting it out on Airbnb'

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During his decade in real estate, Mr Faizal came across people from all walks of life eager to own property but unable to do so. They had around Dh20,000, Dh30,000, Dh50,000 in their bank accounts but that wasn’t enough to buy something. This is the target customer for Smart Crowd, he says.

The transaction process works as follows. Users subscribe to the platform and can invest as little as Dh5,000 in a property. There is a 30-day window for people to contribute capital and raise the target amount to purchase the asset. If the target is not reached, investors’ money is returned, including fees. If it is reached, Smart Crowd facilitates the set-up of a DIFC-registered vehicle to acquire the property, and the buyers become shareholders. The structure is “plain vanilla – we’re not reinventing the wheel,” says Mr Farid.

Investors’ money is held in two custodian banks – Emirates NBD, the UAE’s largest lender, and UK FCA (Financial Conduct Authority)-regulated Global Custodian Services – as ring-fenced funds Smart Crowd has no access to. The platform provides users with a personal 'Smart Crowd Wallet’ dashboard, a mirror image of their custodian account that shows transactions and rental income, similar to a brokerage account for stocks and shares.

Investors can withdraw their funds or roll them over to another stake purchase via the platform. Theoretically there is no restriction on the number of investors that can buy a property, but for administrative ease the team has limited it to 100 for now.

Smart Crowd charges users two fees. The first is a 4 per cent structuring fee, proportionate to the size of each investment, to set up the vehicle. Payment is split into two tranches, with 1.5 per cent paid upfront and the other 2.5 per cent paid on exit, when a property is sold and capital is returned. “We want to align our interest with the investor,” Mr Farid says. “If we make all our money upfront people would think we don’t care about whether they eventually sell, so that’s why a chunk of our fees are linked to a liquidity event.”

The second is an annual management fee of 10 per cent of the annual rent, extracted from investors’ quarterly rental returns. This covers facility management costs, management of the investment vehicle, sourcing properties, access to the digital dashboard and, in future, access to the secondary market where people will be able to sell their shares to one another.

The fee is comparable to the typical 8 to10 per cent management fee charged by brokers, and cheaper than those of a Reit (real estate investment trust), with greater returns possible, the founders argue.

They hope to use blockchain to eliminate many third-party costs. “If you have a property with 100 investors all selling parts of their shares every month and buying something else, it’s a constantly changing scenario with a lot of paperwork,” says Mr Ahmed. “That’s where digital innovation comes in.”

The founders have conducted extensive market research and will continue to do so as the business grows. “We’re not pushing an idea at people, we’re responding to demand. We don’t think we’ve cracked it because people’s needs are always changing and we must respond to that,” Mr Ahmed says.

“We’re talking about the emotional journey of our users,” Mr Farid adds. “We want to give them a sense of, ‘Look at that apartment in the Marina – I own part of that’. There’s an emotional high associated with that that you don’t get with a structured fund. We are empowering people to make their own decisions."

________

Read more:

Why property is a good investment if you take out a mortgage

How long do expats need to stay for buying a home to make sense?

Tenancy laws need a review to attract more UAE buy-to-let investors

________

PROFILE:

Company/date started: 2017 (licensed 2018)

Founder/CEO: Siddiq Farid, Abdul Kadir Faizal, Musfique Ahmed

Based: Dubai, UAE

Sector: Real estate, crowdfunding

Size: (employees/revenue) Around 15, six of which are based in Dubai, the remainder in India and Bangladesh

Stage: Seed

Investors: The founders, plus Shorooq Investments. In talks with other prospective seed investors

Our legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Call of Duty: Black Ops 6

Developer: Treyarch, Raven Software
Publisher:  Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
  • Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
  • Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
  • Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
  • Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
The biog

Name: Atheja Ali Busaibah

Date of birth: 15 November, 1951

Favourite books: Ihsan Abdel Quddous books, such as “The Sun will Never Set”

Hobbies: Reading and writing poetry

The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

Coffee: black death or elixir of life?

It is among the greatest health debates of our time; splashed across newspapers with contradicting headlines - is coffee good for you or not?

Depending on what you read, it is either a cancer-causing, sleep-depriving, stomach ulcer-inducing black death or the secret to long life, cutting the chance of stroke, diabetes and cancer.

The latest research - a study of 8,412 people across the UK who each underwent an MRI heart scan - is intended to put to bed (caffeine allowing) conflicting reports of the pros and cons of consumption.

The study, funded by the British Heart Foundation, contradicted previous findings that it stiffens arteries, putting pressure on the heart and increasing the likelihood of a heart attack or stroke, leading to warnings to cut down.

Numerous studies have recognised the benefits of coffee in cutting oral and esophageal cancer, the risk of a stroke and cirrhosis of the liver. 

The benefits are often linked to biologically active compounds including caffeine, flavonoids, lignans, and other polyphenols, which benefit the body. These and othetr coffee compounds regulate genes involved in DNA repair, have anti-inflammatory properties and are associated with lower risk of insulin resistance, which is linked to type-2 diabetes.

But as doctors warn, too much of anything is inadvisable. The British Heart Foundation found the heaviest coffee drinkers in the study were most likely to be men who smoked and drank alcohol regularly.

Excessive amounts of coffee also unsettle the stomach causing or contributing to stomach ulcers. It also stains the teeth over time, hampers absorption of minerals and vitamins like zinc and iron.

It also raises blood pressure, which is largely problematic for people with existing conditions.

So the heaviest drinkers of the black stuff - some in the study had up to 25 cups per day - may want to rein it in.

Rory Reynolds

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

Dengue%20fever%20symptoms
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THE CLOWN OF GAZA

Director: Abdulrahman Sabbah 

Starring: Alaa Meqdad

Rating: 4/5

Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”

UAE-based players

Goodlands Riders: Jamshaid Butt, Ali Abid, JD Mahesh, Vibhor Shahi, Faizan Asif, Nadeem Rahim

Rose Hill Warriors: Faraz Sheikh, Ashok Kumar, Thabreez Ali, Janaka Chathuranga, Muzammil Afridi, Ameer Hamza

Green ambitions
  • Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
  • Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
  • Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
  • Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water 
ELIO

Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett

Directors: Madeline Sharafian, Domee Shi, Adrian Molina

Rating: 4/5

RESULTS

1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m

Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)

2pm Handicap (TB) Dh 84,000 (D) 1,400m

Winner Karaginsky, Tadhg O’Shea, Satish Seemar.

2.30pm Maiden (TB) Dh 60,000 (D) 1,200m

Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.

3pm Conditions (TB) Dh 100,000 (D) 1,950m

Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.

3.30pm Handicap (TB) Dh 76,000 (D) 1,800m

Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.

4pm Maiden (TB) Dh 60,000 (D) 1,600m

Winner Bladesmith, Tadhg O’Shea, Satish Seemar.

4.30pm Handicap (TB) Dh 68,000 (D) 1,000m

Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.

Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EHayvn%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EChristopher%20Flinos%2C%20Ahmed%20Ismail%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EAbu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3Efinancial%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3Eundisclosed%3Cbr%3E%3Cstrong%3ESize%3A%3C%2Fstrong%3E%2044%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3Eseries%20B%20in%20the%20second%20half%20of%202023%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EHilbert%20Capital%2C%20Red%20Acre%20Ventures%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.3-litre%204cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E299hp%20at%205%2C500rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E420Nm%20at%202%2C750rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E10-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E12.4L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh157%2C395%20(XLS)%3B%20Dh199%2C395%20(Limited)%3C%2Fp%3E%0A
The specs

Engine: 3.8-litre twin-turbo flat-six

Power: 650hp at 6,750rpm

Torque: 800Nm from 2,500-4,000rpm

Transmission: 8-speed dual-clutch auto

Fuel consumption: 11.12L/100km

Price: From Dh796,600

On sale: now

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

UAE currency: the story behind the money in your pockets
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Indoor cricket in a nutshell

Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side

8 There are eight players per team

There have been nine Indoor Cricket World Cups for men. Australia have won every one.

5 Five runs are deducted from the score when a wickets falls

Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs

B Side nets, between the striker and halfway down the pitch: 1 run

Side nets between halfway and the bowlers end: 2 runs

Back net: 4 runs on the bounce, 6 runs on the full

THE%20SPECS
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Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

Book%20Details
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While you're here
The biog

Name: Dhabia Khalifa AlQubaisi

Age: 23

How she spends spare time: Playing with cats at the clinic and feeding them

Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need

Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman

Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs 

Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.