You can invest in real estate with just your phone in Egypt
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In a move poised to reshape Egypt’s investment landscape, the Financial Regulatory Authority (FRA) has introduced a comprehensive legal framework for digital platforms dealing in real estate investment fund (REIF) certificates. For the first time, individuals will be able to invest in fractional shares of real estate projects through licensed online platforms, bringing a modern, tech-enabled spin to traditional real estate investment.
A new era of fractional property investment
The FRA's Decision No. 125 of 2025, announced under the leadership of Chairman Mohamed Farid, establishes detailed rules that govern how digital platforms can offer REIF certificates to retail and institutional investors. The regulation enables fractional ownership of real estate assets, which are securitized into investment certificates. These can now be promoted, underwritten, and subscribed to via regulated digital platforms.
This move is a strategic effort by the FRA to democratize access to real estate markets and foster financial inclusion. By making real estate investing more accessible, the authority aims to attract a broader spectrum of investors and introduce low-cost investment products that align with modern consumption and investment behaviors.
Ensuring trust through transparency and structure
To bolster investor confidence, the new rules mandate a robust framework around transparency, disclosure, and digital governance. Platforms must be licensed by the FRA and are required to present extensive data on every transaction. This includes real-time pricing updates, performance reports, and audited financial disclosures—all backed by standardized valuation methods.
Electronic documentation, including contracts and ownership certificates, must be securely stored with FRA-approved digital custodians. Additionally, regular communication between investors and REIFs is obligatory, including prompt answers to inquiries and transparent complaint tracking.
Rigorous investor onboarding and education
The FRA has emphasized the importance of informed investing. Before gaining access to REIF investment opportunities, individuals must pass a knowledge test developed by the platform and approved by the FRA. This test ensures that prospective investors understand the risks and structure of REIF instruments.
Only after passing this test can investors use FRA-approved payment channels to complete their subscriptions. All platforms must open accounts under the Central Depository and Registry Company and list only FRA-authorized REIFs. Every offering must be accompanied by a summary prospectus, detailing minimum subscription thresholds and project feasibility.
Compliance-driven technology infrastructure
Behind the scenes, platforms are required to deploy FRA-approved software and maintain databases that comply with regulatory standards. From investor registration to redemption, every process must be digitized and traceable.
Prior to any investment, the platform must disclose critical information such as the platform manager’s identity, complaint procedures, and protocols for handling refunds or failed offerings. Investors must also receive access to in-depth data such as current issue sizes, dividend schedules, capital increase plans, and updated net asset values.
Disclosures designed to protect investors
The FRA’s guidelines leave little room for ambiguity. Each REIF project listed on a digital platform must be supported by a feasibility study and valuations performed by FRA-licensed experts. Platforms must also publish data on asset acquisition prices, insurance coverage, legal developments affecting the properties, and any policy breaches.
Importantly, if a REIF violates its investment policy, the breach must be disclosed within a week and updated weekly until resolved. This level of transparency aims to minimize information asymmetry between fund managers and investors.
Subscription and redemption protocols tightened
To maintain integrity during the investment cycle, the subscription process must include a digital risk acknowledgment and immediate fund return in cases of subscription withdrawal or failed offerings. Investors receive real-time updates on coverage levels, and successful subscriptions trigger immediate communication with the Central Depository for ownership registration.
Redemption, meanwhile, is capped at 20% of total issued certificates to safeguard fund liquidity. Redeemed certificates must either be resold within a year or cancelled to reduce fund size. These certificates will not carry voting or dividend rights, ensuring that ownership remains accurately represented.
Accountability at every level
Perhaps one of the most groundbreaking aspects of the regulation is its insistence on legal accountability. All stakeholders—from platform managers to REIF administrators—are legally liable for any false or misleading disclosures. Affected parties have the right to seek compensation for damages resulting from inaccurate or omitted information.
This zero-tolerance approach underscores the FRA’s commitment to protecting investors while fostering innovation in Egypt’s financial markets.
Bridging traditional real estate with the digital future
The FRA’s rules didn’t emerge in a vacuum. They follow months of consultation with real estate developers, tech platform operators, and investment stakeholders. Three companies currently running digital real estate investment platforms have already applied to regularize their operations under the new regime.
By anchoring real estate investment in digital infrastructure, the FRA is not only modernizing access to Egypt’s most valuable asset class—it’s also setting a precedent for how emerging markets can balance innovation with robust regulation.