FRA issues digital real estate investment platforms regulations

Egypt’s Financial Regulatory Authority (FRA) has issued its first-ever regulations for establishing digital platforms that allow individuals to invest in fractional ownership of real estate through licensed real estate investment funds.

Decision No. 125 of 2025, approved by FRA Chairman Mohamed Farid, introduces a full regulatory framework governing these online platforms — requiring them to obtain FRA licences, store all contracts electronically, and provide secure payment channels and transparent disclosures.

Platforms must verify investors via an FRA-approved knowledge test, register real estate funds only after licensing, and conduct all subscriptions and redemptions through FRA-approved information memoranda. They must also maintain permanent communication channels with users, disclose all risks and operational procedures, and provide regular updates on fund performance, pricing, and asset valuations.

Investors subscribe digitally — acknowledging risks and receiving automated confirmations — and are refunded immediately if an issuance is unsuccessful. Early exits are possible through structured redemption mechanisms, with funds able to repurchase up to 20 per cent of issued certificates. Redeemed certificates carry no voting or dividend rights and must be resold or cancelled within a year.

The decision aims to create a safe, transparent, and efficient market to boost financial inclusion and attract wider participation in Egypt’s real estate sector.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama