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Ahmed Abou El Saad, CEO of Azimut Egypt, announced the official launch of one of the largest real estate investment funds in the Egyptian market next month, with initial investments of EGP 200 million, and a long-term plan to gradually increase assets under management to EGP 2 billion.

The announcement was made during a meeting of the Real Estate Development and Contracting Committee at the Egyptian Businessmen’s Association, which discussed the future of digital real estate investment platforms and fractional property ownership through real estate investment fund units — a major step toward transforming real estate into a regulated financial product governed by transparency and oversight.

Abou El Saad explained that the new fund will be multi-issuance, with each issuance targeting a specific sector. These include income-generating administrative buildings, as well as the hospitality sector, covering hotels and hotel rooms, in addition to other investment models currently under evaluation.

He added that the minimum subscription amount will start at EGP 5,000, reinforcing the concept of investment democratization and enabling broader segments of society to participate in real estate investment.

Abou El Saad noted that Misr for Central Clearing, Depository and Registry (MCDR) will act as custodian for fund unit holders, ensuring smooth ownership transfers and enhanced liquidity — a key advantage compared to traditional real estate investment models.

Multiple Exit Mechanisms

The fund will offer several exit options without selling underlying real estate assets, including capital increases, treasury units, borrowing mechanisms, and the entry of strategic partners. In addition, partial redemption for unit holders will be available after one year.

He highlighted the significant progress in Egypt’s regulatory framework, along with tax exemptions granted to real estate investment funds, whether at the corporate level or for unit holders.

Abou El Saad stressed the importance of obtaining approvals from the Financial Regulatory Authority (FRA) before launching digital platforms for fractional property sales, allowing electronic contract execution and direct linkage between investors and funds.

He emphasized that fractional real estate investment has become a key savings tool for individuals, providing effective protection against inflation and currency volatility amid ongoing global economic uncertainty.

The CEO also revealed that discussions are underway to abolish the capital gains tax stipulated under Law No. 30, noting that the decision is in its final stages and is expected to significantly boost investment activity and real estate investment funds.