The Ministry of Municipalities and Housing approved a package of amendments to the Municipal Real Estate Disposal Regulations, including new mechanisms to organize investment and development partnerships, as well as the development of tools to finance infrastructure projects in different regions of the Kingdom.
The amendments included allowing municipalities to grant free use of municipal real estate to non-profit projects and associations, as part of a framework aimed at supporting initiatives with a developmental and social impact. To benefit from this regulation, the Ministry stipulated the existence of a donor for the project, in addition to an entity that manages it to ensure its financial sustainability and continuity of its work.
The amended regulation confirmed that the ownership of municipal real estate cannot be transferred to the beneficiaries permanently, while allowing the extension of free use contracts for additional periods not exceeding a total of ten years, provided that the project achieves developmental and social objectives approved within government programs.
The amendments included allowing municipalities to grant free use of municipal real estate to projects and non-profit associations, as part of a framework aimed at supporting initiatives with developmental and social impact.
In terms of financing infrastructure projects, the Ministry has introduced a new organizational mechanism that allows utilizing revenues from the sale and leasing of municipal properties to finance and implement infrastructure works within residential grant schemes. This process is carried out according to a direct agreement between the Ministers of Municipalities and Housing and Finance, which includes defining the controls governing disbursement and implementation mechanisms.
The amendments also dealt with the regulation of the investment of real estate allocated for temporary events, where the investment period is limited to a maximum of six months with the possibility of extending it for a similar period. The regulation also allows the leasing of some municipal properties to the private sector for the purpose of erecting signboards to help guide vehicles to event sites, according to controls approved by the ministry.
The amendments also address the regulation of the investment of real estate allocated for temporary events.
The updates also included the reorganization of some clauses related to the development of lands allocated for service purposes, as industrial lands were excluded from the scope of these regulations, to limit development to service lands by providing them with basic services through qualified investors.
These amendments come within the framework of completing the regulatory procedures related to the Supreme Order issued in 1441 AH, which aims to organize public tenders and enhance the efficiency of the competent municipal committees, to support raising the efficiency of investment in municipal assets and achieve the targets of urban and economic development.
These amendments are part of the completion of the regulatory procedures related to the Supreme Decree issued in 1441 AH.
To view the details of the Municipal Real Estate Disposal Regulation. Click here
