Egypt Issues First Rules for Platforms Investing in REIF Certificates
TLDR
- Egypt has introduced the first regulatory framework for digital platforms offering investments in real estate investment fund (REIF) certificates
- The new rules allow licensed platforms to promote, underwrite, and receive subscriptions for fractional ownership of real estate units via REIF certificates
- Investors will be able to subscribe remotely through a digital model that requires explicit acknowledgement of investment risks
Egypt’s Financial Regulatory Authority (FRA) has introduced the first regulatory framework for digital platforms offering investments in real estate investment fund (REIF) certificates.
The new rules allow licensed platforms to promote, underwrite, and receive subscriptions for fractional ownership of real estate units via REIF certificates. Investors will be able to subscribe remotely through a digital model that requires explicit acknowledgement of investment risks.
Each issue must have a dedicated bank account for receiving subscriptions, with platforms sending confirmation of successful transfers. Redemption rules limit fund companies to meeting redemption requests up to 20% of issued certificates and require any reacquired certificates to be sold or cancelled within one year, without voting or dividend rights during that period.
Platforms must also provide FRA-approved electronic redemption forms containing policyholder details, requested certificates, instalment information, and the latest net asset value from the fund’s management company.
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Key Takeaways
This move opens the door for broader retail participation in Egypt’s real estate market by lowering investment entry barriers and enabling fractional ownership through secure, regulated digital channels. By embedding risk acknowledgement, dedicated bank accounts, and compliance with redemption caps, the FRA is aiming to balance investor protection with market accessibility. The framework also aligns with Egypt’s wider financial inclusion agenda, offering an additional asset class to individuals who might otherwise be excluded from direct property investment. If implemented effectively, licensed REIF platforms could attract both domestic and diaspora investors, deepening capital markets and supporting real estate sector growth.
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