The Cabinet approved a mechanism for dealing with the cancellation of government investment contracts for municipal real estate , according to what was published in the Umm Al-Qura newspaper in its issue of Friday, September 11, 2026. According to what was published in Umm Al-Qura, the following was decided:
First: In the event that a municipal property is transferred from the Ministry of Municipalities and Housing to another entity based on a regulatory instrument, the entity to which that property is transferred is bound by the investment contract signed regarding this property if it exists, or compensates the investor for all the resulting damages in the event that it cancels that contract.
Second: The Saudi Authority for Accredited Valuers shall coordinate with any relevant authorities to prepare a mechanism for assessing the damages resulting from the cancellation of investment contracts for municipal properties transferred from the Ministry of Municipalities and Housing to another entity, and report on what requires the completion of regulatory procedures in this regard.
This came about:
After reviewing the transaction received from the Royal Court No. 54302 dated 6/7/1447 AH, which included the letter of the Minister of Municipalities and Housing No. 4700431121 dated 25/6/1447 AH, regarding the joint minutes to establish a mechanism for dealing with the cancellation of government investment contracts for municipal real estate.
Having reviewed the Municipal Real Estate Disposal System, issued by Royal Decree No. (M/64) dated 15/11/1392 AH. And having reviewed the Approved Residents System, issued by Royal Decree No. (M/43) dated 9/7/1433 AH.
After reviewing the regulations for disposing of municipal real estate, issued by Royal Order No. 40152 dated 29/6/1441 AH.
After reviewing the two memoranda No. (4116) dated 4/12/1447 AH, and No. (700) dated 3/3/1448 AH, prepared by the Experts Authority at the Council of Ministers.
After reviewing the recommendation prepared by the Council of Economic and Development Affairs No. (26-2/48/D) dated 1/10/1448 AH.
After reviewing the recommendation of the General Committee of the Council of Ministers No. (2856) dated 14/3/1448 AH.
