As part of its efforts to develop the municipal investment system to provide an attractive environment to attract quality investments to Saudi cities, the Ministry of Municipal and Rural Affairs has approved several reforms.
The new reforms approved by Majed Al Hogail, Saudi’s Minister of Municipal and Rural Affairs will enable;
Direct lease of real estate for up to three months
Rentals of municipal lands for up to 50 years and
Exemption to rent during construction works for up to 10 percent of the project term.
The revised regulations for the municipal real estate transactions are introduced as the kingdom strives to provide a fair, attractive and competitive environment that encourages the private sector to engage and investment with municipalities to develop Saudi cities.
The ministry updated that the number of investment opportunities offered by municipalities across the Kingdom touched 4,511 leases this year. There are opportunities being offered in the health and commercial sector, road advertisements, parking lots and kiosks, in addition to opportunities in medical cities.
The ministry indicated that the newly revised regulations also included reducing the value of bank guarantees to become 25 percent of the bid value from 100 percent previously.
The revised regulations also included many controls aimed at raising the quality of life in Saudi cities, the ministry added.
