Arab Finance: The Financial Regulatory Authority (FRA) has decided to lower fees for services provided by Misr for Central Clearing, Depository, and Registry (MCDR) to participants in Egypt's digital real estate investment fund platform ecosystem, as per a statement.

The decision comes as part of efforts to encourage investment in real estate investment fund units and broaden access for individual investors. It reduces financial burdens on all parties involved in the system, including real estate investment funds, digital platform operators, and individual investors, to facilitate investment in the real estate sector through fund units offered via licensed digital platforms under the FRA's supervision.

Under the new rules, MCDR will provide central depository and registration services to real estate investment funds at reduced rates, while digital platform operators will receive free annual subscriptions. The authority also lowered custodian service fees for investors who choose to use MCDR's custody services.

Islam Azzam, Chairman of the FRA, said decision No. 109 of 2026 aims primarily to stimulate real estate investment through investment funds whose units are offered for subscription on digital platforms, while encouraging small individual investors to invest within a fully regulated and supervised framework.

Azzam said the expected impact extends beyond investors to the broader ecosystem, supporting the growth of investment funds and digital platforms while contributing to increased participation by retail investors. He added that digital platforms represent a regulated investment tool that can help stimulate activity in the real estate development market.

For real estate investment funds issuing units on digital platforms, the decision sets registration fees at 0.25 per 1,000 of capital, capped at EGP 5,000 for first-time registration and for new issuances. Annual subscription fees were set at EGP 250 for funds with capital below EGP 5 million and EGP 2,500 for funds with capital of EGP 5 million or more.

Other service fees include EGP 50 for registration status certificates, EGP 0.50 per shareholder for additional copies of unit-holder records subject to minimum and maximum thresholds, and 0.25% for partial redemptions capped at EGP 10,000. Total annual fees collected from a fund may not exceed EGP 500,000.

For digital platform operators, the annual subscription fee was set at zero, while electronic stamp and signature services will continue to be charged according to applicable electronic signature fees.

The decision also outlines reduced custody fees for investors. Clients will pay a one-time contract fee of EGP 25, while annual custody charges will amount to 10 per 10,000 of the value of securities held, capped at EGP 100 per portfolio for each issuance.

Fees for freezing securities were set at EGP 25 per request, while transfers to another custodian or partial redemptions will be charged at EGP 0.50 per 1,000 of the market value of transferred securities, with a maximum fee of EGP 100 per request. Portfolio transfer receipts, account statements, and reports will be provided free of charge.

In 2025, MCDR reported net profits of approximately EGP 1.95 billion in 2025, marking a 15% year-on-year (YoY) increase from EGP 1.69 billion in 2024.