Watheeq Financial Services, a Saudi Arabia-based investment management and financial advisory company, is launching a venture capital fund worth 100 million Saudi riyals ($26.7m) that will invest in property technology start-ups in the kingdom and in the region.
The Watheeq PropTech VC Fund is a closed-ended venture capital fund and is Sharia-compliant, the company said in a statement on Sunday.
The Saudi Arabia Capital Market Authority-licensed fund is expected to reach its initial close in the third quarter of this year.
“We are investing in rapidly-growing start-ups … potential market leaders who are disrupting the traditional real estate markets and stimulating eco-friendly lifestyles,” Khaled Zaidan, managing partner of the fund and head of alternative investments at Watheeq, said.
“Venture capitalists are jumping into PropTech and we are thrilled to be pioneering this transformation from Saudi Arabia to the region.”
Investors have increasingly invested in PropTech after the coronavirus pandemic forced companies, including those in the real estate sector, to digitise to ensure business continuity. Last month, Aldar Properties, Abu Dhabi's biggest property developer, said it is partnering with US venture capital firm Fifth Wall to invest in a fund focused on supporting PropTech start-ups in Europe. The Abu Dhabi company also launched an accelerator in May to support PropTech start-ups in the region.
The Watheeq PropTech VC fund will pick companies that are using technology to solve pain points in the real estate sector, while adhering to Sharia compliant investment standards. It will help bridge the gap between the Middle East and North Africa markets and the rest of the world by opening up new market opportunities.
At least 50 per cent of the portfolio companies chosen by the fund for investment operate in Saudi Arabia, the biggest Arab economy, the company said.
Smart cities, smart buildings, real estate analytics, blockchain and online viewing technology are some of the focus areas for PropTech companies that are looking to disrupt the traditional market through digital solutions for the entire real estate value chain.
In addition to the pandemic, climate concerns and a rapid rise in population have all contributed in accelerating technology adoption in the real estate and construction sectors and their related industries.
“However, real estate hasn’t met its tech-potential yet. Even though the real estate sector is the largest investment asset class in the world … it still under-utilises technology,” Mr Zaidan said.
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The Abu Dhabi Awards explained:
What are the awards? They honour anyone who has made a contribution to life in Abu Dhabi.
Are they open to only Emiratis? The awards are open to anyone, regardless of age or nationality, living anywhere in the world.
When do nominations close? The process concludes on December 31.
How do I nominate someone? Through the website.
When is the ceremony? The awards event will take place early next year.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Company profile
Name: Dukkantek
Started: January 2021
Founders: Sanad Yaghi, Ali Al Sayegh and Shadi Joulani
Based: UAE
Number of employees: 140
Sector: B2B Vertical SaaS(software as a service)
Investment: $5.2 million
Funding stage: Seed round
Investors: Global Founders Capital, Colle Capital Partners, Wamda Capital, Plug and Play, Comma Capital, Nowais Capital, Annex Investments and AMK Investment Office
The five pillars of Islam
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
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- 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
Sole survivors
- Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
- George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
- Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
- Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
Most sought after workplace benefits in the UAE
- Flexible work arrangements
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- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
