Register with InvestDubai by clicking here
Fill in your profile and wait for its validation, 72h processing time.
Upon approval of your account, send your funds to your wallet.
A valid passport is required. It is considered valid if its expiration date is more than 90 days.
National identity cards and driver's licenses are not accepted.
As for your proof of address, it must be less than 3 months old.
It must be one of the following documents :
A valid passport is required to validate your registration. In order to be an investor and owner abroad, you must provide an INTERNATIONAL proof of identity, i.e. a passport. You will be the owner of shares in the company that owns the property in Dubai that you are investing in.
Great question! As the region’s first DFSA regulated real estate investment platform , SmartCrowd is legally required by the regulator to ask for this information. Think of it as no different than opening up a bank account. You’d be worried if your bank wasn’t asking customers the right questions before opening up their account, right? It’s the same concept. SmartCrowd is regulated by the DubaiFinancial Services Authority (DFSA) and is required to comply withKnow-Your-Customer (KYC) and Anti-Money Laundering (AML) controls. For this reason, all investors must submit proof of identity (passport) and proof of residence (e.g., utility bills, bank statements, tenancy contract, etc.) along with their employment information, source of wealth, and current annual income. All users will go through compliance checks before onboarding & start investing. As per the DFSA AML Rules and in accordance with UAE Federal AML Laws, Smart Crowd has implemented a robust Anti Money Laundering framework to ensure that Smart Crowd mitigates the risk of money laundering or terrorist financing activity through its platform. Smart Crowd’s AML framework includes, but is not limited to, the designation of a Money Laundering Reporting Officer, employee AML training and the implementation of a Customer Due Diligence process.
Once your account has been created and the right documents have been uploaded (i.e. your passport and an electricity bill, a rental agreement, a tax notice of the current year or a bank statement dated less than 3 months); you will receive the validation of your account, by email, within 72 hours or less. Remember to check the spam section in your mailbox.
Feel free to watch our tutorials by clicking here
Once you have validated your KYC (account) and account approved on SmartCrowd platform you will have access to the current deals by login in to the platform.
It is imperative to make a transfer in AED and not in EURO. Indeed, if you send euros, you will have a less favorable exchange rate than if you send AED directly.
We invite you to follow this tutorial to know the procedure to add funds.
The maximum ownership to 24.99% for each investment opportunity to ensure that no single shareholder has a controlling interest. This is to protect the interests of all investors, whether large or small.
However, the total amount that a user can invest in the platform, depends on the type of investor you are. There are two types of investors, Retail investors and Professional investors.
As a Retail investor you are limited to annual investment of $50,000 in a calendar year. As a Professional investor there is no maximum limit for investment. Please contact us if you believe you might qualify as professional investor
All clients on SmartCrowd are defaulted as Retail Clients. Retail Clients are only allowed to invest a maximum of $50,000 (AED 183,625) in any given calendar year. This is to protect their interest and not over-expose them to unlisted securities.
Investors who are classified as Professional Clients don’t have an upper limit and can invest more than $50,000 on the SmartCrowd platform in any single calendar year.
The qualification criteria includes but is not limited to:
However, even if you do not qualify as a Professional Client, please note that each calendar year ends on 31st December so, you are free to invest another $50,000 in the following calendar year from January 1st.
To invest from a company, you must first register as an individual on the platform. Then, once your KYC is validated, send the following documents via this link https://form.typeform.com/to/uZTCttzd :
In order for us to followup with you, please notify us by email when you have completed this step at email@example.com.
The approval process can take between 3 and 6 days.
It depends on the type of investment you have chosen. For the Flip part it varies from one project to another. For the Hold part, these are longer-term investments, and the resale will normally take place after a minimum of 5 years; this will depend on the market conditions.
You own a percentage of your chosen property through an investment vehicle, also known as a Special Purpose Vehicle (SPV) in the Dubai International Financial Center (DIFC). A separate SPV is established for each property on the platform by SmartCrowd. When you and other investors raise the full investment amount to finance a property, an SPV is created, in which you and the other investors become shareholders. The title to the property issued will bear the name of the SPV entity. The SPV is solely responsible for holding the asset and distributing dividends to its shareholders. As an investor, you are a direct shareholder of the SPV and have direct access to all the benefits associated with your investment. For all investments in Dubai, SPVs are registered with the Dubai International Financial Center (DIFC) (top 10 financial centers in the world).
No problem, you can directly ask your bank to transfer the funds in AED (minimum 1,600 AED or about 500€ for the Flip part and 408 AED or about 136€ depending on the current exchange rate for Hold properties).
You can also optimize the transfer of your funds by opening an account via N26, Wise or b-sharp and benefit from a very preferential exchange rate.
Find our tutorials here.
See question 14.
You can state to the bank that you are making an investment in Dubai and can share the following documents in case more information is needed:
PIN code = Personal Investments or FIL code = Investment Fund Shares in the UAE; if the bank does not accept the first code.
KYC (your account) validation time is 72 hours in normal circumstances.
It is a legal investment vehicle, Special Purpose Vehicle (SPV) in the Dubai International Financial Center (DIFC).
An SPV is created to isolate and securitize the said property in a separate company. The operations on the SPV are limited to acquisition of the specific property to ring fence the property and isolate the risk of the SmartCrowd platform and other properties. These SPV protect investors from SmartCrowd liabilities as well as protection from SmartCrowd’s bankruptcy. The SPV is registered with the DIFC and your ownership is recorded on the public register and the SPV is registered with the Dubai Land Department providing legal trail of your ownership in the property via the SPV.
Investors can digitally verify the ownership and shareholding of each of their SPVs via the DIFC’s public register. Insert the “Company Name/Trading Name” (this is the name of the SPV) and you will find your name in the list of shareholders of your property. The same information is registered with the Dubai Land Department, which guarantees full legal recourse over your property. In addition, there is no other way to list dozens of investors on a single property title deed.
Therefore an SPV structure allows for a transparent process in which real estate transactions are facilitated. It’s hassle-free investing, 100% digital.
There is no corporate income tax in Dubai, so the SPV will not pay tax. You will be liable for taxes according to your country of residence once you receive your interest and according to your personal situation.
Yes, but please keep in mind that there are minimum and maximum investment amounts. The minimum is AED 480 or about €130 at the current exchange rate, and the maximum investment is limited to 24.99% of the property value. There is also annual investment limit of $50,000 in any calendar year for Retail Clients.
You own a share of an individual property via a DIFC Special Purpose Vehicle (SPV). The returns are issued from the SPV and you receive a share of returns proportionate to your investment as a shareholder. The returns available to property owners are calculated as the rent collected from tenants, minus the property-related costs, which include but are not limited to, service charges, repairs & maintenance, property insurance and management fees.
The other form of return is capital gains which is realized when the property is sold for a higher price compared to the price it was purchased for. The sale proceeds less any costs associated with closing the transaction will result in net exit proceeds that will be distributed to investors proportionate to their investment in the SPV.
Estimates of future returns are provided with the property listing on the platform. Our estimates are available for review as part of the investment process. However, it is important to note that this information is based on past performance, which cannot be regarded as an accurate indicator of future results. Smart Crowd does not provide investment advice. SmartCrowd only provides the tools and transparent market information to help you make your investment decision.
Absolutely, you have the possibility to reinvest your capital and your gains generated on other properties than the one(s) you have already invested in.
Yes, you don’t need to be a resident of the UAE or have citizenship to own property in Dubai. You own a property through an investment vehicle, also known as a Special Purpose Vehicle (SPV) in the Dubai International Financial Centre (DIFC). A separate SPV is established for each property on the platform. When you and other investors raise the full investment amount to finance a property, an SPV is created in which you and the other investors become shareholders. The title to the property issued will bear the name of the SPV entity. The SPV is solely responsible for holding the asset and distributing dividends to its shareholders. As an investor, you are a direct shareholder of the SPV and have direct access to all the benefits associated with your investment. For all fractional property investments made via the SmartCrowd.ae property crowdfunding platform, SPVs are registered with the Dubai International Financial Centre (DIFC) (top 10 financial centers in the world).
If the Total Funding Target is not achieved within the relevant time period, all committed funds will be returned, without deduction of any fees or expenses, to your Smart Crowd Account (Smart Crowd Account). You can then choose to use the returned funds towards another Property or withdraw the funds from your Smart Crowd Account entirely. Please note when you initiate a withdrawal of funds from your Smart Crowd Account via the Platform, SmartCrowd will return your funds to the bank account which you used to fund your Smart Crowd Account. Your Smart Crowd Account is a segregated account operated by Emirates NBD.
At this stage SmartCrowd does not allow for oversubscription. The shares in the investment are allocated on a first come first served basis
See response to Q.27 above.
Material Change means any change or new matter that may significantly affect the value of the Property, the ability to rent the Property, the return on the Property or the value of the Investment. If a Material Change occurs during the commitment period, Smart Crowd will disclose prominently on its Platform details of the material change; notify committed investors of the material change and require them to reconfirm their commitment within 5 business days; and if reconfirmation is not provided within 5 business days, cancel the commitment. If a Material Change occurs after the commitment period, Smart Crowd will disclose prominently on its Platform, details of the material change; any change in the rights of investors, arising from the material change; and what steps, if any, Smart Crowd is proposing to take as a result of such change.
SmartCrowd recommends a holding period of 5 years for buy to let investment properties. Real estate is meant to be long term investments.
Investors have two exit options:
1) Collective Exit at the end of the term or via a vote - At the end of the recommended holding term, a mandatory vote is called where investors are given the option to sell their investments at market value (each property is evaluated by an independent Real Estate Regulation Authority (RERA) approved valuator). However, this vote can be called sooner by SmartCrowd, or any of the investors for valid reasons. The vote is based on proportionate weighting of your investment. That means, if you own 10% of the shares in a property, your vote carries a 10% weight. SmartCrowd doesn’t allow anyone to own more than 24.99% of a property. This is designed to ensure that no one is a controlling party. Here’s an example: imagine 60% of the shareholders decide to exit/sell their shares. In this case, 60% of the shares will be re-listed on the platform to replace those shareholders with new ones. If the 60% does not get funded by investors on the platform, then the property is sold in the open market and everyone is exited. Conversely, in a situation where 40% decide to sell and 60% decide to retain the investment, SmartCrowd will list 40% of shares on the platform. However, if the 40% does not get funded within the funding period, the investors will have to retain their ownership along with the majority.
2) Sell share via Share Transfer Facility – The Share transfer facility is operational for 2 weeks every 6 months in September and March. This will provide you with more options to exit your investment more frequently. Remember, real estate should not be treated as a speculative asset. It is a great investment for those who have the appetite to weather out short-term economic fluctuations.
InvestDubai has partnered with SmartCrowd, which is a fully regulated real estate investment platform. All investments are made through the SmartCrowd platform and administered by SmartCrowd. SmartCrowd is a registered company in the Dubai International Financial Centre (DIFC) and is regulated by the Dubai Financial Services Authority (DFSA). DFSA is the financial services regulator of the DIFC. In addition, the investment structure is approved by the Dubai Land Department (DLD).
No. InvestDubai does not own and only facilitates the process via the SmartCrowd.ae platform. SmartCrowd also has no interest in the SPV. As part of its regulated services, SmartCrowd establishes the SPV and administers it on behalf of the investors, and acts on their instructions.
No. these are 100% equity (interest free) real estate investments and investors are not expected to make any additional capital contributions once they have made their initial contributions. Gross rental income will cover all costs, bills and fees, including property insurance. Any major capital expenditure will need to be evaluated on a case-by-case basis, but no additional capital outlay is expected.
Your share of dividends will start accruing from the date of purchase of the property or a later date if specified on the property information page. Dividends are paid when the property is rented and is paid on the 12th of every month.
You will receive an email informing you that dividends have been received for your investments and transferred to your digital wallet. You can also log into your dashboard to track your current investments and dividends received at any time. You can choose to withdraw these funds or accumulate them in your wallet to reinvest in other opportunities.
Each property goes through a rigorous selection criteria that considers over 100 different data points for investment quality. Before listing a property on the platform, financial analysts perform an in-depth analysis using institutional-level market data that is not typically available to private investors. The investment thesis is then outlined in an easy-to-understand report and presented to registered members on the platform. In addition, to provide members with greater peace of mind, due diligence of the property is also performed and an independent appraisal is conducted by a Real Estate Regulation Authority (RERA) certified appraiser. This report is then shared with potential investors.
SmartCrowd does not eliminate any of the risks that you may incur by acquiring a residential property directly and unconditionally (i.e. without a mortgage). Some additional risks are introduced by virtue of shared ownership and the timing of your exit.
SmartCrowd encourage you to diversify your investments across multiple properties to protect against excessive exposure to a single property that could suffer problems such as tenant default (for the Hold portion) or a property-specific issue that affects valuation. Investments in real estate and unlisted stocks have risks. Your capital may be at risk, and you may not receive the expected returns.
Variable Income – The expected income might not be realised. There can be void periods between leases or the tenant might default.
Ownership in non-tradable shares – Your ownership in the real estate is not direct rather you have shares in an unlisted investment vehicle. It is a relatively illiquid instrument that can you only be transferred to other investors on the SmartCrowd platform. Unlisted stocks carry the possibility of a total loss of value. However, since the underlying assets are insured (i.e. tangible assets), the likelihood of your investment shares losing all their value is highly unlikely.
Our interests are aligned with those of investors who invest in fractional property ownership through SmartCrowd. All listed properties undergo a rigorous review and due diligence process. Financial and real estate experts carefully review each property. All relevant and necessary documentation is provided for investors to analyze investment choices and make the most appropriate investment decision for their goals.
Investors may diversify their property investments by spreading their investment capital among several properties. For example, instead of investing AED 40,000 or roughly €10,400 (at current rates) in one property, you can invest AED 10,000 or €2,600 in 4 different properties. This minimizes your risk by diversifying your investments. Moreover, by adding property investments to other investments you own such as equities, bonds, precious metals, etc, this allows you to further diversify your overall investment portfolio and may soften the negative impact of a drop in values of one or more of the other assets making up your portfolio.
Although SmartCrowd provides estimates of gross and net rental income based on third party information, these are not guaranteed. It is possible that lower rents may be obtained. In addition, rental income may cease completely during certain periods. In the event that a tenant defaults on its obligations to the owner of the property, investors will experience a decline in cash receipts and cash available for distribution. From time to time, vacancies in the operation of real estate assets can be expected to occur. In some cases, significant vacancies may mean that there is less cash available for distribution to investors. The value of your investment may go down as well as up and historical performance is not an indicator of future performance. Rental and capital returns are dependent on a variety of factors, including real estate assets and the economy in general. A decline in the value of your investment may be due to a number of reasons, such as a decline in the underlying value of the property or a problem with the property that will have to be financed by future rental income. Real estate investments can have a cyclical performance, and values can rise or fall accordingly. Economic, political and legal issues may affect values as they would other asset classes. Any future downturn in the real estate market could have a significant negative impact on the value and income generated by a real estate investment. Investors should individually assess and establish their comfort level with this risk at the outset. If for any reason the operator ceases to operate, investors may lose their capital, incur fees or suffer delays in liquidating the investment.
There are one-time transaction fees of 1.5% at entry and 2.5% at exit. There is also a yearly fee of .5% for administration costs related to investment .
Costs are variable per project and will be detailed in the investment document of each project.
There are many 3rd party costs associated with concluding property transactions in Dubai. These typically included Dubai Land Department (DLD) transfer tax of 4% to the buyer of the property, brokerage commission of 2%, trustee fee, title deed fee, NOC fees and others. All these costs are detailed for each investment opportunity on the SmartCrowd platform.
Smart Crowd acts independently of the investment vehicles. Investors retain the legal share of the investment vehicle and the crowdfunded property asset held within it. Each property investment is separate from Smart Crowd’s assets and liabilities, as well as any other property investments on the platform.
In the unlikely event that Smart Crowd is unable to operate on a permanent basis Smart Crowd will follow its Cessation Plan (CP). Where CP is initiated, all investors will be notified via email of the wind-down , provided with their current investment statement and will be asked to use the platform to make a decision of whether to sell at current market levels or hold on to the property. If the outcome of a property’s shareholders is to majority hold the investment, the management of the property will be handed over to a predefined Property Asset Manager who will be responsible for administering the SPV, managing the facility manager, communicating with investors and distributing dividend income. If, at the time that the CP is initiated, and the majority decision of investors is to liquidate the investment, Smart Crowd personnel will manage and oversee the sale of Property and the return of funds to investors proportionately less any costs associated.
Any funds in your account that have not yet been invested in property are held in a segregated account in accordance with DFSA rules. This is a separate bank account that is separate from Smart Crowd’s monies and will be returned to investors in the event of Smart Crowd falling into financial distress.
InvestDubai is a brand of Greenbull Group and is powered by Smart Crowd Limited. SmartCrowd is regulated by the Dubai Financial Services Authority (DFSA).
Additional information about the deposit bank account
The client’s money is held in a separate client account with Emirates NBD and is administered by SmartCrowd. SmartCrowd has conducted due diligence on Emirates NBD’s custodial systems and controls and has deemed them fit and proper to hold client money on its behalf. Emirates NBD is regulated by the UAE Central Bank.
While Emirates NBD is responsible to SmartCrowd for the safekeeping of its clients’ money, Emirates NBD has no direct relationship with clients. Therefore, SmartCrowd is fully responsible to maintain proper segregation of customer monies deposited in the ENBD account.
Clients are subject to the protection afforded by the DFSA’s client money provisions, and in the event of an insolvency, liquidation, or other distribution relating to SmartCrowd, which is a DFSA regulated firm, Client money will be subject to the DFSA client money distribution rules.
As a regulated entity, SmartCrowd are required to have a conflict of interest policy to identify, disclose, manage and mitigate any conflicts between us and our clients. SmartCrowd have put in place a Conflicts of Interest Policy which identifies those situations giving rise to actual or potential conflicts of interest and which provides details of how such conflicts are managed. Where the arrangements under conflicts of Interest Policy are not sufficient to ensure, with reasonable confidence, that risks of damage to the interests of the client will be prevented, SmartCrowd will disclose sufficient details of the actual or potential conflict to you in order to enable you to take an informed decision as to whether to continue to deal with SmartCrowd notwithstanding the existence of such conflict.
Some of the Conflicts of Interest might arise from the following but not limited to (1) Smart Crowd might use third parties such as brokers, affiliates and distribution channels to market and promote the Smart Crowd platform for which SmartCrowd would pay commission or share revenue for onboarding investors. (2) Smart Crowd in some cases will earn fee from Sellers including Developers/Brokers for using the platform to sell properties on (3) SmartCrowd will earn fees on the exit from the sale proceeds (4) SmartCrowd might use service providers in which they have an economic interest or are part of the SmartCrowd group of companies.
SmartCrowd works with financial institutions, property brokers, property insurers and consults with independent consultants who provide their expertise. Alongside this, they use real-time market data provided by REIDIN, a reputable leader in real estate market data to ensure that our platform offers only quality properties that will provide healthy returns. Each property will also have an assigned facility manager. Each service provider is evaluated on a periodic basis to ensure optimal service is being provided. SmartCrowd does not receive any remuneration, fee, payment or commission from a real estate agent, property manager, valuer, custodian, or any other person providing a service related to the property.
We are available to answer all your questions at firstname.lastname@example.org.