الهيئة العامة للرقابة المالية

Mohamed El-Sayyad at Akhbar El-Yom Real Estate Conference:

• Real estate growth hinges on efficient non-banking finance, deep capital markets and strict governance.
• FRA received its inaugural request to convert a real estate firm into a publicly listed Real Estate Investment Fund (REIF).
• Eleven applications are under review for digital platform management, promotion and underwriting.
• The Authority is evaluating outsourcing requests to facilitate remote real estate investment via digital identity systems.

Mohamed El-Sayyad, FRA  Vice Chairman delivered the opening keynote at the 6^th edition of Akhbar El-Yom Real Estate Conference, held under the theme “The Egyptian Real Estate Industry: Attractive Investments and Promising Opportunities”. Representing FRA Chairman Dr. Islam Azzam, El-Sayyad addressed a high-profile delegation that included Dr. Randa El-Minshawi, Minister of Housing, Utilities, and Urban Communities, alongside a distinguished assembly of financial stakeholders and real estate leaders.

Vice Chairman emphasized that the issues discussed at this year’s conference – foremost among them attracting local and foreign investment, developing legislative frameworks, digital transformation, sustainability, and the advancement of financing tools – represent core issues directly linked to the future of the Egyptian real estate sector. He noted that international experiences have proven that the success of the modern real estate industry depends on the efficiency of financing instruments, the depth of financial markets, and digital transformation, alongside governance and transparency within a flexible and stable legislative and regulatory environment.

El-Sayyad explained that the Authority has prioritized the development of Real Estate Investment Funds (REIFs) and digital property platforms, adopting a comprehensive development vision since 2022. This strategy involved drafting several fundamental legislative and regulatory amendments both to the Executive Regulations of the Capital Market Law and through FRA board resolutions.

These reforms focused on reducing operational requirements for specific activities and eliminating concentration limits on single real estate projects. Key measures also included permitting investment in registrable assets, authorizing the establishment of multi-issue funds, and allowing real estate companies to convert into REIFs. Furthermore, the Authority streamlined procedures for increasing fund capital and established a regulatory framework for digital platforms specializing in REIF units. This move aims to create a secure, organized digital investment ecosystem featuring modern mechanisms for electronic subscription, disclosure and exit strategies.

To activate this framework, El-Sayyad revealed that the Authority has received 11 applications for licenses to promote and underwrite investment fund units and manage digital real estate platforms. Additionally, FRA received a request to convert a real estate investment company into a Real Estate Investment Fund (REIF) with units listed on the stock exchange. He noted that the Authority has already granted the first license to a company to conduct promotion and underwriting activities, alongside a license to manage digital real estate platforms.

Regarding Real Estate Investment Funds, El-Sayyad noted that there are currently four active funds with a combined net asset value (NAV) nearing 9 billion EGP. Furthermore, the Authority is currently reviewing 23 licensing applications, signaling robust market interest and growing confidence among institutional investors and developers in Egypt’s evolving regulatory landscape.

El-Sayyad also underscored the “Real Estate Export” initiative, leveraging Egypt’s competitive edge in urban expansion, strategic pricing, and product diversity. To facilitate this, the Authority has updated digital identity protocols to recognize e-passports, enabling foreign investors to establish and verify their identities remotely.

In line with these efforts, the Authority is reviewing proposals from outsourcing firms to integrate them into the digital identity framework. This move aims to enable seamless remote investment in real estate certificates via licensed digital platforms.

Concluding his remarks, El-Sayyad emphasized that Egypt’s real estate sector is entering a transformative era driven by institutional capital and FinTech. He reaffirmed the Authority’s commitment to provide a solid regulatory and supervisory backbone to boost market liquidity and cement Egypt’s status as a premier regional hub for real estate investment.