The Board of the Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has issued Decision No. 125 of 2025, setting the regulatory framework for launching digital platforms that facilitate investments in real estate investment fund (REIF) units for the first time in Egypt, Invest-Gate reports.

This move enables individuals to invest in fractional ownership of real estate through licensed platforms, as part of the FRA’s broader push to expand access to innovative and inclusive financial products.

The new regulation creates a secure and transparent environment for digital REIF platforms. Existing platforms are now required to legalize their status, while real estate developers can offer projects through FRA-licensed platforms. The decision follows a series of consultations with real estate developers and platform operators, resulting in three companies applying to regularize their operations.

Digital REIF platforms are defined as tech-based models approved by the FRA to manage subscriptions and redemptions of REIF units, while ensuring full disclosure and secure digital documentation. Platforms must verify investor eligibility through a mandatory knowledge test, provide FRA-approved educational content, and use secure, authorized payment systems. Only FRA-licensed REIFs can be listed, with investment governed by a published summary memorandum that outlines minimum subscription thresholds and project feasibility.

The regulation mandates open communication between investors and fund managers, timely responses to inquiries, and quarterly reports on complaints. All technical systems used by platforms must be approved by the FRA. Platforms must also disclose key information such as registration terms, fund documents, risks, refund conditions, financial statements, investment valuations, and any legal or financial developments affecting the properties.

Investors will subscribe through digital forms confirming risk acceptance and receive electronic confirmation of successful transactions. In case of withdrawal or subscription failure, platforms must promptly return funds. Platforms must also notify the Central Securities Depository for registration and issuance of digital investment certificates.

The regulation includes rules for early redemption, allowing up to 20 percent of fund units to be redeemed using available liquidity or new subscriptions. Redeemed units must be sold within a year or canceled, and they do not carry voting or profit rights during the holding period. Platforms must provide digital redemption forms with updated valuation data and payment details to ensure full transparency.

This decision reinforces the FRA’s commitment to innovation, investor protection, and the responsible development of non-banking financial markets in Egypt.