الهيئة العامة للرقابة المالية

Dr. Islam Azzam, FRA Chairman:

• This decision aims to boost investment in real estate funds units.
• Expected positive impact on fund activity, platforms and retail investor turnout.
• These new regulated platforms will revitalize Egypt’s real estate development market.

FRA Board of Directors has issued a new resolution regulating the MCDR service fees for all participants using Real Estate Fund Digital Platforms. Launched to streamline real estate investments, this framework allows investors to buy fund units through licensed digital platforms quickly and easily. The entire ecosystem operates under the strict supervision and regulation of the Authority.

FRA has eased the financial burden on all participants within this new investment ecosystem -namely the issuing real estate fund, platform manager and investors. This was achieved by introducing reduced central depository and registry fees for both funds and platforms, while also reducing custody service fees for clients using MCDR’s services.

MCDR plays a pivotal role in the digital real estate platform system as the central entity responsible for registering real estate fund units and tracking all transactions throughout the investment duration. MCDR is authorized to provide custody services to interested investors via these platforms, with accounts opened according to designated workflows. Once a fund subscription is covered, MCDR is immediately notified of the unitholders and subscription data to establish holders’ registry, which is updated daily in coordination with the platforms. MCDR is also notified of all units’ redemptions.

Dr. Islam Azzam, FRA Chairman, stated that Resolution No. 109 of 2026 regarding MCDR service fees primarily aims to stimulate real estate investment via digital funds. He emphasized that the Resolution is designed to encourage retail investors to safely deploy their capital within a fully regulated environment.

Service Fee Details:

• The resolution outlines specific service fees charged by Misr for Central Clearing, Depository and Registry (MCDR). The central depository and registry fees applied to the fund company are structured as follows:
• Initial Fund Listing (Shares / Units): 0.025% (0.25 per mille), capped at EGP 5,000 (one-time fee).
• Listing New Issuances (Capital Increase): 0.025% (0.25 per mille), capped at EGP 5,000 upon listing the new issuance.
• Annual Subscription Fee: EGP 250 for companies with capital below EGP 5 million.

EGP 2,500 for companies with capital of EGP

5 million and above.

• Listing Status Certificate: EGP 50 per certificate.
• Extra Copy of Unitholders List: EGP 0.50 per unitholder (Minimum: EGP 100 / Maximum: EGP 3,000).
• Partial Redemption: 0.025% (0.25 per mille), capped at EGP 10,000.
• E-Signature & Electronic Stamp: Subject to standard e-signature pricing tariffs.

The total combined fees collected by MCDR from any single fund company shall not exceed EGP 500,000 annually.

• Fees Charged to the Digital Platform Manager

For digital platforms hosting the real estate fund units for subscription and displaying transaction data, the fees are set as follows:

• Annual Subscription Fee: Free of charge.
• E-Signature & Electronic Stamp: Subject to the applicable standard e-signature pricing tariffs.
• Custody Fees Charged to Investing Clients are structured as follows:
• Account Opening / Registration: EGP 25 (one-time setup fee).
• Annual Safekeeping Fee (Holding): 0.001% (10 per 100,000) of the securities’ value. This is paid annually based on the market value and currency of issuance at the end of December each year, capped at EGP 100 per client portfolio per issuance.
• Asset Freezing Request: EGP 25 per request.
• Portfolio Transfer (to another custodian) or Partial Redemption: EGP 0.50 per EGP 1,000 of the transferred securities’ market value, capped at EGP 100 per request.
• Receiving a Portfolio Transfer: Free of charge.
• Account Statements and Reports: Free of charge.
• A Flexible Regulatory Framework to Facilitate Investment

With these measures, the resolution delivers an unprecedented reduction in service fees performed by MCDR for all participants within the digital platform ecosystem for real estate investment fund units. This initiative aims to expand the market, make investing in these units highly accessible to citizens, and optimize the performance of an ecosystem that introduces an innovative channel to the Egyptian market to bolster financial and investment inclusion.

Dr. Islam Azzam, FRA Chairman, explained that the positive impact of these steps extends far beyond the investment platforms themselves. They are set to revitalize the real estate development sector as a whole. Through these platforms, developers can digitally showcase their projects to investors for unit subscriptions via fast, streamlined procedures. All necessary disclosures are integrated within a transparent framework for unit redemptions to reinforce market confidence and safeguard the interests of all parties.

Dr. Azzam pointed out that regulations for establishing these platforms, issued under FRA Board Resolution No. (125) of 2025, mandate that investment funds provide comprehensive, sufficient, and fully documented disclosures on the platforms to ensure the highest levels of transparency and protect investor rights. These requirements include disclosing a summary of the economic feasibility study for each real estate project targeted for offering. This in addition to the fair value of assets, determined via a report issued by an FRA-registered real estate appraisal expert, statements of purchase values, sold real estate assets, and their current market value ,  semi-annual periodic financial statements and dividend distributions,  insurance policy statements for the real estate assets under investment and any judicial rulings, arbitration awards, official registrations, or decrees affecting the legal status of the real estate properties.

Concurrently, under Resolution No. (125) of 2025, the digital platforms are also legally bound to several disclosures and procedures designed to simplify processes for investors, raise awareness and protect rights, including providing a secure, automated link between all involved parties, offering secure payment and collection channels, publishing the feasibility study summary for each fund. In addition to providing educational and informational materials regarding the investment instruments available on the platform and their potential risks and establishing a dedicated mechanism for receiving and addressing complaints.

To date, the Financial Regulatory Authority has received 11 applications to obtain licenses for promoting and underwriting investment fund units, as well as managing digital platforms. Meanwhile, four real estate investment funds are currently active in the market, with total net assets approaching EGP 9 billion by the end of the first quarter of this year.