The announcement by the Ministry of Municipal and Rural Affairs of a project to update the regulation on the disposal of municipal real estate for the opinion of beneficiaries carried several meanings and objectives, most notably reducing dependence on subsidies paid to municipalities.
The concept of municipal investment.
The concept of municipal investment With this project, the Ministry of Municipal and Rural Affairs has reconsidered the concept of municipal investment and expanded it to include real estate, municipal services, and all investment opportunities to reach sustainable cities to increase the quality of life in cities to achieve the goals of the Kingdom's Vision 2030.
Through this project, the Ministry seeks to reduce dependence on subsidies paid to municipalities, develop their financial resources and municipal investments, and move as an enabler to achieve the Kingdom's Vision 2030 to shift from a rentier economy to a productive economy, based on the change and development that has occurred in many municipal investment concepts and municipal sector formations, the diversity of investment opportunities, the increased percentage of private sector participation in investing in municipal activities, and the emergence of practical difficulties in multiple aspects of investment tools. Ministry of Municipalities and Municipalities.
Ready Files The ministry aims that the project aims to move in parallel with the National Transformation Program 2020 and its initiatives emanating from the Kingdom's Vision 2030, which focuses in its targets on raising the quality of life in cities and the sustainability of their resources. Ready Files.
The Ministry believes that the Municipalities and Municipalities are ready in terms of composition, structure, legal personality, financial and administrative independence, and independent financial statement - to exercise the statutory role to dispose of their funds, collect their revenues, enhance the participation of the private sector and benefit from its capabilities and expertise and enter into a balanced relationship with it to enable it to obtain a fair return that helps achieve the required results to develop municipal services, improve their quality and reduce their cost. The Ministry believes that the Municipalities and Municipalities are ready in terms of composition, structure, legal personality, financial and administrative independence, and independent financial statement.
Real estate is an investment activity The Ministry said that real estate disposal has become one of the investment activities of the municipal sector, and that real estate represents only part of the funds and investment opportunities that can be disposed of, as there are wider areas of investment opportunities and multiple municipal services that can be developed and invested in with the active participation of the private sector. Real estate is an investment activity.
The Ministry of Municipal and Rural Affairs noted the modern design that works to take advantage of the investment potential in terms of size and capabilities required for investment, from small opportunities at the level of service activity to large projects that require high spending, advanced technologies, expertise, financial and administrative capabilities. She explained that the proposed modernization project provides support for SMEs to play their role in all types of investments in the municipal sector, through direct investment with municipalities or investment in services associated with large investments with private sector companies.
Specialized Programs
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She pointed out that the project to modernize the municipal real estate disposal regulation supports reducing the number of investment projects excluded from public bidding, as they will be minimal and directed to invest in some types of public benefit markets and service activity.
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She noted that experience has shown that there is a need to increase the maximum duration of investment contracts and review the extension policies for some types of contracts.
The Ministry pointed out that this method constitutes a qualitative leap in municipal investment due to the in-kind assets owned by municipalities - if properly invested in partnership with the private sector - that can provide high financial returns that support the revenues of the municipal sector, so that entering into a partnership with the private sector in accordance with the rules of public competition.
The Ministry pointed out that this method constitutes a qualitative leap in municipal investment.
The new draft adopts opening the door for municipalities to invest in temporary purposes on a daily or monthly basis for the purpose of holding an event or organizing an event, given that municipalities own multiple types of real estate.
