The Egypt Financial Regulatory Authority (FRA) has issued its first rules governing digital platforms used to invest in certificates of real estate investment funds, bringing subscriptions and redemptions on these platforms into a licensed and supervised framework. Three electronic real estate platforms have already begun regularising their status by applying to establish investment funds and obtain licences for promotion and subscription coverage. Under Board Decision No. 125 of 2025, platforms must verify registration conditions and require investors to pass an FRA-approved knowledge test after reviewing educational materials on the instrument and its risks. The framework requires secured digital payment and collection channels with the necessary approvals, opening the required accounts in line with the central depository mechanism, and publishing an FRA-approved short information memorandum for each offering that includes the minimum subscription threshold, alongside a digital subscription application with explicit risk acceptance, a dedicated bank account per issuance, and electronic notices and coverage indicators. Platforms must also provide extensive disclosures (including periodic pricing based on valuations by FRA-licensed parties, fund financial information, net asset value reporting, project feasibility summaries, material events and legal issues affecting underlying properties), maintain electronic recordkeeping via licensed entities, keep always-on communication channels between funds and registered users, maintain a complaints log with quarterly reporting to the FRA, and refund funds immediately where an investor withdraws within the permitted period or where the minimum subscription level is not met. For early exit, redemption follows the FRA-approved memorandum and may be funded from available liquidity, new subscriptions or borrowing, but is capped at the legal maximum of 20% of total issued certificates. Any certificates acquired by the fund through redemption must be disposed of within one calendar year or cancelled through a reduction in the fund or issuance, and they carry no voting or profit rights while held.
Egypt Financial Regulatory Authority 2025-08-06
Egypt Financial Regulatory Authority sets first licensing and conduct rules for digital platforms offering real estate investment fund certificates
The Egypt Financial Regulatory Authority has introduced rules for digital platforms investing in real estate fund certificates, requiring licensing and supervision. Platforms must ensure investor registration, knowledge testing, secure digital payment channels, and comprehensive disclosures, including periodic pricing and financial information. Redemption is capped at 20% of total issued certificates, with specific conditions for disposal or cancellation of redeemed certificates.