Executive instructions regulating the disposal of municipal real estate assets

The Ministry of Municipal and Rural Affairs has launched executive instructions regulating the disposal of municipal real estate assets, under the theme "Updates in Service of the Investor and the Citizen." These amendments aim to provide a fair competitive environment and attract investment, thereby achieving sustainable economic development.

This inauguration regulates a new stage of investment of the country, paving the way for all segments of investors and beneficiaries to successfully participate in city development through investment opportunities.

The updated regulations support achieving the Kingdom's Vision 2030 goals through the development of Saudi cities by stimulating an integrated environment that improves quality of life, empowers SMEs through opportunities for entrepreneurs and large-scale corporations alike. 

The amendments to municipal real estate disposal regulations contain a number of key updates. The most important of which are: 

- Increasing the maximum duration of contracts from 25 years to 50 years, with favorable grace periods, raising the upper rent limit from %5 to %10 of the contract period, in addition to reducing the value of bank guarantees to 25% of annual lease value. 

- Raising the quality of investment offers through verification of investor eligibility before launching projects that require specialized expertise and involvement of the private sector; in addition, municipalities are now empowered to enter into contracts with different investment models, including the joint income, *revenue sharing, and short-term leasing of parks.

- Optimizing disposal of real estate assets by shortening the period of direct creation of public parks from 5 years to two years, which contributes to the development of parks in the country, and enable municipalities to lease their property on a daily, weekly or monthly basis in addition to leases for occasions and events; thereby improving quality of life through recreational activities and functions. 

This update is but one of the areas that the Ministry of Municipal and Rural Affairs seeks to develop in order to further contribute to achieving the strategic goals of the Kingdom's Vision 2030, accelerating development across Saudi cities and provinces by improving quality of life across the country.

Explore our investment opportunities via visiting the below website...

https://furas.momra.gov.sa/index-en.html