The renaissance of the Saudi tech sector has instigated disruptive advances across most major industries, including the property market. As a result, businesses in Saudi Arabia are increasingly recognizing the value of property technology (proptech) as a fundamental component for driving efficiency and maintaining competitiveness.
Innovations are rapidly taking hold in the realms of real estate and property across the country, and mortgages are becoming a popular target for proptechs such as Holo, a leading player in the digital mortgage sphere.
The global innovator has been ramping up efforts to consolidate a substantial presence in the Kingdom and benefit from its surging proptech market. Only a few days ago, the company announced the closing of a seven-figure seed round to accelerate expansion into the Kingdom as its key geography of focus.
Residential Boom in Saudi Opens up Market Opportunities
Holo was founded on the premise of creating a seamless, transparent home buying experience through its verticalized solutions, with an emphasis on propelling digital mortgages forward in MENA. Since its inception in 2019, proptech has been making strides in its founding country, the UAE, working with more than 20 lenders and offering more than 500 products on its platform.
With a residential boom underway, Saudi Arabia presents an attractive proposition for Holo as the latter embarks on its next wave of growth. Founder of Holo, Arran Summerhill, ascribed the current property market resurgence to Vision 2030 and its focus on increasing access to homeownership. The market opportunities arising from that aim have been a key factor driving Holo’s Saudi expansion.
As Saudi Arabia’s real estate industry’s GDP is expected to grow from 6% to 10% in 2030, proptech has emerged as a pivotal force fueling that growth, boosting its global appeal and the ascent of the country as a hotbed for proptech innovations.
This has been evident in the increase in the volume of funding poured into the sector, which has increased by 35% year-on-year in 2023 to reach $9 million, suggesting readiness among investors and stakeholders to engage with and invest in the market.
The exponential growth in popularity and massive investments in the Saudi proptech space are also propped up by greater recognition of the importance of incorporating digital mortgage solutions in existing lending models to achieve higher profitability and meet customer expectations.
These elements, combined, contribute to the positive dynamic shift that the market is experiencing and strengthen the Kingdom’s status as a global proptech hub.
Sharing similar views, Summerhill illustrated: “The positive engagement we’ve experienced with these partners, including the central bank licensing teams at SAMA, demonstrates Saudi Arabia’s commitment to embracing proptech and actively working with innovative companies like Holo. Our interactions with Saudi banks and government entities have revealed a remarkable level of readiness for collaboration and integration with proptech companies like Holo.”
Leveraging Market Sentiment to Carve a Niche in Saudi’s Proptech
The company is currently in the process of setting up a base in Saudi Arabia and acquiring an operational license from the Saudi Central Bank (SAMA).
Its expansion journey is facilitated by our on-ground team, whose assistance and deep-rooted knowledge of the local landscape have been paramount in helping Holo navigate the intricacies of the market and achieve a smoother transition.
Highlighting AstorLabs’ impact, Summerhill said: “As two non-Arabic founders based in the UAE expanding into the Saudi market, the support from AstroLabs was invaluable. They helped us with licensing, visas, and banking arrangements. We collaborated with various members of the AstroLabs team throughout the process and they consistently provided expert assistance.”
“Their capabilities are evident from the fact that we have signed up for their aftercare package, essentially our PRO service in Riyadh, and have just renewed it for a second term.”, he added.
Prior to its official service launch, the company has been actively close to the economic pulse of the county, fostering its participation in the tech landscape by participating in several remarkable events in Riyadh, including the Fintech Saudi accelerator and the Riyadh Bank WSL program in 2022. Moreover, it exhibited and participated in panels at major events such as Cityscape and Saudi Proptech, highlighting how it has become a fundamental player in the transformation of real estate.
The proptech sector is poised for substantial growth, with a trajectory set to be largely shaped by the likes of Holo, which is uniquely positioned to add efficiency and greater transparency for home seekers looking to secure the right mortgage in the Kingdom. By growing its footprint in the Saudi technology sector, Holo is not only succeeding in its own right but is also setting a precedent for the property market and driving improved access to homeownership as per the Vision 2030 framework.
Become a pivotal sector leader in Saudi, expand with AstroLabs