Regulation turns challenges into opportunities
The regulation contains 14 articles, most notably exempting the developer from municipal service fees and real estate transaction tax
<The Ministry of Municipal and Rural Affairs and Housing has launched a project to prepare regulation of urban enablers and incentives for slums in Saudi Arabia, a set of incentives related to urban legislation and regulations that are granted to the developer in order to stimulate the development of the targeted slum in a manner that does not conflict with the general planning directions of the strategic plan and urban code of the regions and cities within which the targeted slum is located.Ministry of Municipal, Rural Affairs and Housing launched a project to prepare a <a href="_COPY. This regulation aims to develop informal neighborhoods in cities by providing incentives and investment opportunities in informal areas targeted for development through the involvement of government companies, the private sector and the non-profit sector to transform these neighborhoods from challenges to opportunities, contributing to achieving livability, attracting residents, stimulating investment, increasing opportunities for economic growth and financial sustainability, and improving the spatial planning and urban landscape of cities.
This regulation aims to provide incentives and investment opportunities in informal areas targeted for development through the involvement of government companies, the private sector and the non-profit sector. This regulation applies to all informal neighborhoods within the supervisory scope of the secretariats and municipalities and excludes the supervisory scope of the Royal Commission for the Holy City of Makkah and Holy Sites.
This regulation applies to all informal neighborhoods within the supervisory scope of the secretariats and municipalities.
Exempting the developer from municipal services fees
The draft regulation includes 14 articles, the most prominent of which is exempting the developer from municipal services fees and real estate transaction tax, provided that the Ministry of Municipal and Rural Affairs and Housing, in coordination with the Ministry of Finance, set the controls for exemption, and granted the Minister of Municipal Affairs the authority to exempt targeted informal areas from the regulation of municipal services fees.The draft regulation also grants the Minister of Municipal Affairs the authority to exempt targeted informal areas from the regulation of municipal services fees.
Loans and programs for businesses
<The regulation also granted the Ministry of Municipal and Rural Affairs and Housing the authority to prepare the rules and mechanism of the organizational and technical procedures necessary to exempt projects related to informal neighborhoods from building requirements and regulations. The regulation stipulates that the Ministry of Finance shall provide the necessary support for the development of informal neighborhoods, and the executive rules of this regulation shall specify the mechanism of financial support, while the Ministry of Human and Rural Resources and Housing shall coordinate with banks and real estate lending funds to provide loans and programs dedicated to companies developing informal neighborhoods.
»Slum Urban Development Fund«
<The articles of the regulation include that the Ministry of Municipal, Rural Affairs and Housing gives priority to slum dwellers on housing projects and products according to the organization of housing support, and the establishment of a fund named »Urban Development Fund for Slum Areas«, which is supervised by the Ministry of Municipal, Rural Affairs and Housing, and has public legal personality, independent financial responsibility and the right to dispose and own property, based in Riyadh and may open branches if necessary.The articles of the regulation emphasize the establishment of a slum development fund that undertakes the tasks of expropriating properties located within the slum areas targeted for development, and allocates land
Providing financial support
The Slum Development Fund works to unify efforts to deal with slum areas, provide technical, organizational, administrative, administrative, executive and financial supervision of slum development operations, and deal with investors wishing to invest in these areas.
The Slum Development Fund works to unify efforts to deal with slum areas and provide technical, organizational, administrative, executive and financial supervision of slum development operations.
<The regulation states that one of the tasks of the Fund is to provide the required types of financial support, whether government support, private sector support, or grants and donations, while providing sustainable and self-financing resources in the medium and long term and potential returns, and creating financing and lending incentive mechanisms for compatible activities.
The regulation grants the Minister of Municipal and Rural Affairs and Housing the authority to sell, assign, exchange, or grant usufruct for properties owned by the secretariats and municipalities located within the targeted slum according to the regulations governing this, as well as the authority to contract partnerships with government and private sector companies.
