Fathallah Fawzy, Chairperson of the Real Estate Development and Contracting Committee at the Egyptian Businessmen’s Association (EBA), said that moving towards fractional property ownership through digital platforms and real estate investment funds (REIFs) represents an important step in developing modern financial mechanisms that support the national economy.
Speaking during a committee meeting, participants described these tools as a qualitative shift that transforms real estate into a regulated financial product subject to governance and regulatory oversight.
Fawzy noted that fractional real estate investment via digital platforms has become one of the most prominent modern investment tools, particularly in light of the sharp rise in property prices, which has exceeded the financial capacity of large segments of individuals. This trend, he said, has driven growing demand for partial real estate ownership.
He added that the Egyptian market has witnessed the launch of more than five digital real estate platforms within a single year, reflecting a tangible shift in investor behaviour. Fawzy stressed that real estate investment funds represent a key pillar for the growth and sustainability of the real estate development sector.
Fawzy also called for studying Saudi Arabia’s experience in establishing real estate funds dedicated to developing specific projects for defined timeframes, followed by clear exit strategies and profit distribution. Such mechanisms, he said, provide liquidity for developers and help reduce project delivery delays.
He noted that while this model has not yet been fully activated in Egypt, developers have held several meetings with the Financial Regulatory Authority (FRA), which has introduced strict regulatory frameworks for digital platforms to ensure they promote structured investment rather than unauthorised fund collection. He emphasised that clear exit mechanisms are the main distinction between legitimate investment activity and illegal practices.
For his part, Ahmed Abu El-Saad, a real estate fund management expert, portfolio manager, and CEO of Azimut Egypt, delivered a detailed presentation on the evolution of Egypt’s digital real estate platforms and REIFs. He highlighted recent legislative developments and tax exemptions applicable to both fund managers and certificate holders.
Abu El-Saad said that fractional investment has become a core savings tool for individuals and an effective hedge against inflation and currency volatility amid ongoing global economic uncertainty.
He revealed that there is a move towards abolishing the capital gains tax stipulated in Law No. 30, noting that the decision is in its final stages and is expected to provide a strong boost to the investment market and REIFs.
Abu El-Saad added that one of Egypt’s largest real estate investment funds is scheduled for official launch next month, starting with initial investments of EGP 200m and a plan to gradually increase capital to EGP 2bn.
He explained that the fund will operate through multiple issuances, with each issuance targeting a specific sector, including income-generating administrative buildings and hospitality assets such as hotels and hotel rooms, alongside other investment models currently under study. Subscriptions will start from EGP 5,000, reinforcing the principle of democratising investment and enabling broader public participation in the real estate market.
Abu El-Saad also noted that Misr for Central Clearing, Depository and Registry (MCDR) will act as custodian for the fund’s certificates, ensuring ease of ownership transfer and enhanced liquidity—an advantage over traditional real estate investment.
He stressed the importance of obtaining FRA licensing before launching digital platforms for fractional property sales, as this enables electronic contract execution and links investors directly to regulated funds, helping provide the liquidity needed to finance a wide range of real estate projects.
