FRA Issues Framework for Digital Platforms to Boost Venture Capital Access in Egypt
For the first time, digital platforms will be officially licensed to operate as intermediaries for private equity and venture capital investments.
Egypt’s Financial Regulatory Authority (FRA) has unveiled its first regulatory framework for digital platforms dedicated to private equity and venture capital funds. Issued as Resolution No. (194) of 2025 by FRA Chairman Dr. Mohamed Farid, the framework allows investors to subscribe to and redeem fund documents electronically, signaling a major step toward digitizing the country’s investment activities and expanding access to alternative assets.
For the first time, digital platforms will be officially licensed to operate as intermediaries for private equity and venture capital investments. These platforms, built on FRA-approved technology, will provide investors with real-time access to fund information, enhancing transparency and efficiency across the market.
The new rules emphasize investor protection through mandatory knowledge tests and explicit risk acknowledgments before participation. Platforms are also required to publish approved information memoranda, feasibility studies, and semi-annual reports, while maintaining direct communication channels with investors.
Strict compliance standards have been introduced, including the use of dedicated bank accounts for subscriptions, immediate refunds if fundraising targets are unmet, and centralized record-keeping through the Central Depository and Registry Company. Provisions also address liquidity, enabling controlled redemption of fund documents while preventing conflicts of interest.
The FRA’s initiative comes as Egypt’s venture capital ecosystem matures, with growing institutional involvement and demand for transparency. By digitizing fund operations and setting clear safeguards, the framework aims to build investor confidence and position Egypt as a more advanced and inclusive hub for alternative investment.
