الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman:

• The non-banking financial sector has diverse and innovative financing solutions to support all economic sectors.
• FRA received 17 applications, including 13 for establishing real estate funds and 4 for establishing digital platforms to obtain licenses for promotion and underwriting.
• 6% of securitization issuances over the past 3 years are backed by sales of real estate companies.
• Publicly listed real estate companies often demonstrate resilience during economic downturns, which in turn helps them develop their business.
• FRA is stimulating the supply side of the stock market by studying ways to increase listing incentives and promoting institutional investment with all relevant parties.

Dr. Mohamed Farid, FRA Chairman met with a number of real estate developers during his participation in the third edition of The Investor… Real Estate Conference. The conference was held under the theme “The Future of Real Estate: Challenges, Solutions and the Alternative Market.” During the event, he highlighted the importance of helping the real estate sector achieve its goals by exploring the financing opportunities offered by the non-banking financial sector.

During the meeting, Dr. Farid reviewed various financing solutions and services available through the non-banking financial sector under FRA’S Supervision. He also touched upon the diverse and interconnected investment mechanisms available to companies. He affirmed that the resilience of real estate companies in the face of recent economic changes has positively impacted the performance of those listed on the stock exchange, enabling them to develop their businesses and enhance their capacity for expansion.

FRA Chairman pointed out that securitization bonds are among the most prominent financing mechanisms provided by the stock market, clarifying that unlisted companies can also benefit from them.

He explained that from 2022 to the end of August 2025, there were 30 securitization bond issuances for real estate financing and development portfolios, valued at a total of EGP 77.2 billion. This amount represents 36.6% of all securitization bond issuances in Egypt during that period, which totaled EGP 211 billion.

He empathized that the Authority has received 17 applications for new licenses following the introduction of regulations for digital real estate investment platforms. These applications include 13 for establishing real estate investment funds and 4 from digital platforms seeking licenses to promote, underwrite, and manage these funds. This initiative is a strategic move to prepare for the launch of new digital platforms that will allow investors to access real estate fund certificates.

He added that this move came after a dialogue with the owners of digital real estate platforms to understand their business models and ensure their operations comply with the laws governing non-banking financial sector.

Following these discussions, three active digital real estate platforms have begun the formal process of establishing and licensing their own investment fund companies. They are also seeking the necessary licenses for promotion and underwriting activities. This coordinated effort is a crucial step towards regulating this growing sector, which will not only help ensure the protection of clients but also guarantee the long-term sustainability of these companies’ services. This aligns perfectly with the Authority’s core mission to maintain financial stability and safeguard the rights of all clients.

FRA Chairman also noted that the recent development of Egyptian accounting standards has helped companies re-evaluate their assets using fair value instead of book value. This contributes to the financial statements accurately reflecting the financial position and business results and supports more precise financing and investment decisions. He emphasized that some real estate companies have already benefited from this development which enhances their competitiveness in the market.

Dr. Farid emphasized the critical role of real estate funds as a key tool for financing and investment. He stressed that adopting sustainability standards is essential for companies to create sustainable residential communities which aligns with Egypt’s broader vision for comprehensive development.

FRA Chairman asserted that FRA is actively working to stimulate the supply side of the stock market. According to Dr. Farid, the Authority is currently exploring ways to increase listing incentives and boost institutional investment in collaboration with all relevant stakeholders.

Dr. Farid concluded by highlighting that advancing the real estate sector requires a strong partnership between the state and the private sector. He called for true collaboration among real estate developers, financing institutions and regulatory bodies to build a modern, innovation-driven urban sector. This integrated approach, he noted, would create a variety of financing options and comprehensive investment alternatives accessible to all citizens