The Ministry of Municipalities and Housing affirmed that the early extension of lease contracts for investment projects covered by the approved regulations contributes to enhancing the sustainability of existing projects and supports their development and expansion plans, by allowing the extension of the contract after the expiry of half of its term, thus giving investors a wider scope to continue investing and developing their projects.
She explained that the early extension allows investors to plan new phases of development and expansion during the contract period, and to add quality investments to existing projects, thereby enhancing their continuity and increasing the efficiency of real estate and municipal asset investment.
She explained that the controls include large investment projects concluded before the updated municipal real estate disposal regulations came into effect, and the extension mechanism is organized according to specific criteria that achieve a balance between preserving the rights of municipalities and enabling investors to continue developing their projects and benefit from available investment opportunities.
She stated that the early extension comes within the Ministry’s efforts to develop the municipal investment environment, enhance its stability and attractiveness, and raise the efficiency of utilizing municipal assets, in a way that supports the growth of existing projects, strengthens partnership with the private sector, and contributes to the development of cities and governorates and improves the quality of facilities and services.
The ministry urged investors in projects covered by the regulations to take advantage of the possibility of early extension, and to review the regulations, standards and how to benefit from them through the “Opportunities” platform.
https://furas.momah.gov.sa/ar/regulations-and-bylaws .
