• FRA is working to stabilize markets and protect stakeholders by guiding real estate platforms toward regulated business models.
• Three platforms, Nawy, SAFE, and Saqr, submitted requests to FRA to establish investment funds and obtain IPO coverage licenses.
• This move aligns with FRA’s broader strategy to support fintech startups and ensure proper governance in non-banking financial services.

FRA 

The Financial Regulatory Authority (FRA) is enacting an ongoing effort as part to stabilize markets and protect stakeholders. 

Three digital real estate platforms have begun procedures to establish investment funds. In addition, they began IPO coverage licenses to regulate the status of their business models.

This is part of FRA’s commitment to supporting fast-growing startups and entrepreneurs. Furthermore, this is in line with its vision of ensuring market stability and protecting stakeholders. 

The platforms that submitted requests are: Nawy, SAFE (affiliated with Madinat Misr for Housing and Development), and Saqr, owner of Frida. 

This matters because the FRA views the completion of a comprehensive regulatory framework for financial technology as a key milestone. It serves as a starting point for supporting all startups and entrepreneurs aiming to offer innovative and digital non-banking financial services.

Real Estate Investment Fund

Several platforms have begun transitioning to the investment fund model and have submitted feasibility studies to the FRA.

Three entities operating real estate digital platforms whose core business involves selling real estate shares to individuals have formally requested approval from the FRA to: 

• Regularize their status 
• Begin setting up two companies each:
  • one as a real estate investment fund 
  • The other to handle promotion, IPO coverage, and investment fund management.

The platforms that submitted requests are: Nawy, SAFE (affiliated with Madinat Misr for Housing and Development), and Saqr, owner of Frida. 

Open Dialogue: As part of its ongoing approach to open a channel of dialogue with all stakeholders, the FRA has held a series of meetings to issue decisions and regulations.

Furthermore, the FRA has met with real estate development companies and digital platforms to understand their business models. Additionally, the authority informed the companies about the regulatory and legislative requirements necessary to legitimize their operations. This is to ensure stakeholder protection and support the stability of companies. 

These meetings include key real estate development players and owners of digital platforms engaged in selling real estate shares. 

In the meetings, the FRA presented its vision for regulation of their activities under non-banking financial laws. Ultimately, it concluded that the real estate investment fund model is the best option. This is because it is the most legally sound and practical framework to accommodate the real estate markets’ need to diversify funding sources. Meanwhile, it also accommodates the demand for investment in real estate with adequate governance and protection.
Bottom line: This engagement from companies reflects an increasing desire to operate under proper legal framework and regulatory oversight.Thus, enabling them to deliver their services in a manner that ensures the protection of all stakeholders.