RIYADH: Jeddah-based accommodation platform Mabaat has secured SR9 million ($2.4 million) in a seed funding round, as it aims to build on its contribution to Saudi Arabia’s tourism goals.
The Saudi startup provides a platform for property owners to offer short-term rental accommodation, much like the AirBnB model. Unlike the US holiday rental platform, Mabaat handles the whole rental process from marketing, booking and payments to property maintenance.
Mabaat manages mid- to high-end private homes and compounds across the Kingdom.
“We are extremely proud of this investment that supports our vision in disrupting the accommodation market,” its founder, Talal Al-Sorayai, said in a statement.
The funds will be used to boost the company’s marketing strategy, particularly targeting regional travelers who are looking for short-term rental accommodation in Saudi Arabia.
Mabaat also plans to enhance its technology infrastructure, as well as to expand its labor force to meet growing demands.
The funding round was led by Dubai-based Derayah Ventures, which sees short-term rental as an important aspect of the Kingdom’s tourism goals under Vision 2030.
"Investment in the tourism sector is one of the pillars of the Saudi Vision 2030. It targets a contribution from this sector close to 11.5% of Saudi GDP by 2029,” said Faris Al-Rashed, head of Derayah Ventures.