The Egypt Financial Regulatory Authority has amended the conditions for real estate investment and development companies seeking to convert into real estate investment fund companies. The change removes the requirement for net equity to equal at least 40% of total assets and investments, while retaining a minimum net equity threshold of EGP 500 million based on the latest approved financial statements. Net equity must exclude any gains from asset revaluations, with the remaining amount used to subscribe for fund units following conversion. The authority also added a requirement that loans recorded in the latest approved financial statements remain within the borrowing limit for real estate investment funds under the Capital Market Law’s executive regulations. That limit is 60% of the net value of fund units, subject to adjustment by the authority’s board. The existing minimum issued and paid-up capital requirement of EGP 5 million, or its foreign currency equivalent, remains unchanged. The decision is expected to be published in the Egyptian Gazette and on the authority’s website in the coming days.
2026-08-15Egypt Financial Regulatory Authority
Egypt Financial Regulatory Authority eases real estate investment fund conversion requirements, retains EGP 500 million equity floor
The Egypt Financial Regulatory Authority has removed the requirement for converting real estate companies to maintain net equity equal to 40% of assets and investments, while retaining the EGP 500 million minimum. Companies must exclude asset revaluation gains and comply with the borrowing limit for real estate investment funds, while the EGP 5 million paid-up capital floor remains unchanged.