Three Real Estate Platforms Seek FRA Licensing for Investment Funds

The Financial Regulatory Authority (FRA) of Egypt has announced that three major real estate platforms—Nawy, SAFE (a subsidiary of Madinet Masr), and Saqr, owner of the Farida brand—have commenced the process to obtain licenses under Egypt’s non-banking financial regulations.

Each platform is establishing two legal entities: one to create a real estate investment fund and another to secure licenses for fund promotion, underwriting, and management. This dual-entity framework ensures transparency and compliance with relevant regulations.

The FRA emphasized its commitment to supporting startups and entrepreneurs within a stable regulatory environment, following consultations with real estate developers and digital fractional property sales platforms.

This licensing initiative promotes the real estate fund model as the ideal legal framework, enhancing transparency, investor protection, and funding diversification in Egypt's property market.

In response to increased online platforms soliciting public investment without proper approvals, the FRA has conducted legal and technical workshops guiding operators on compliance. These efforts resulted in voluntary license applications by the mentioned platforms and the publication of a 'negative list' of unauthorized operators to protect investors.

The FRA praised the cooperative approach of these companies, highlighting the importance of legal compliance for trustworthy services and investor safety.

Finally, the FRA reaffirmed its open-door policy for all companies aiming to regularize operations, encouraging engagement especially for innovative digital real estate investment platforms in Egypt’s evolving non-banking financial sector.

Source: Daily News Egypt