{"id":7471,"date":"2015-10-14T09:26:43","date_gmt":"2015-10-14T06:26:43","guid":{"rendered":"http:\/\/www.amlak.net.sa\/?p=7471"},"modified":"2015-10-14T09:26:43","modified_gmt":"2015-10-14T06:26:43","slug":"%d8%ad%d9%88%d8%aa-%d8%a7%d9%84%d8%b4%d8%b1%d9%88%d8%b7-%d9%88%d8%a7%d9%84%d9%85%d8%aa%d8%b7%d9%84%d8%a8%d8%a7%d8%aa-%d8%b5%d8%ad%d9%8a%d9%81%d8%a9-%d8%a3%d9%85%d9%84%d8%a7%d9%83-%d8%aa%d9%86","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/7471\/","title":{"rendered":"It contains conditions and requirements. Amlak publishes the text of the detailed regulations of the hotel and tourism project financing program"},"content":{"rendered":"<p>Given the need to establish a framework for tourism financing, the General Authority for Tourism and National Heritage worked to establish this program based on the tourism development strategy approved by the state in 1425 AH, which emphasized the need for state intervention to stimulate investment in tourism projectsprojects.<\/p>\n<p><span style=\"color: #800000;\"><strong>The Resurgence of Investment in Tourism<\/strong><\/span><\/p>\n<p>Following the issuance of Cabinet Decision No. (209) dated 22\/6\/1430 AH, which stipulated in paragraph (III) that \u201cdeveloping appropriate mechanisms for government lending funds to participate in financing domestic tourism projects,\u201d the Tourism Authority launched an initiative to revitalize the hotel financing program through coordination with the Ministry of Finance, Consequently, several high-level committees comprising representatives from the Authority and the Ministry were formed to re-examine proposals for financing hotel and tourism projects in light of the need in certain cities and provinces for additional hotel and tourism projects and the latest developments regarding the establishment of such projects.<\/p>\n<p><span style=\"color: #800000;\"><strong>Approval by the Cabinet<\/strong><\/span><\/p>\n<p>The Authority reached an agreement with the Ministry of Finance to review the previous regulations and propose amendments to them; a draft amendment to the regulations governing the financing of hotel and tourism projects was prepared, which was approved by the Council of Ministers after being submitted by His Excellency the Minister of Finance, and after the relevant committees had spent sufficient time refining the regulations to meet the needs of tourism and hotel projects throughout the Kingdom.<\/p>\n<p><span style=\"color: #800000;\"><strong>Program Guidelines<\/strong><\/span><\/p>\n<p>The program\u2019s regulations stipulate funding for hotel and tourist accommodation projects and their ancillary facilities, including villas, hotel suites, lounges, and conference centers, as well as resorts, tourist lodges, heritage hotels, theme parks, and new tourist destinations, located in less developed cities or governorates that possess distinctive tourist attractions and have a population of less than one million, according to the latest statistics from the General Authority for Statistics and Information, or in new tourist destinations. The text of the regulations is as follows:<\/p>\n<p><span style=\"color: #800000;\"><strong>Loan Requirements<\/strong><strong>:<\/strong><\/span><\/p>\n<ul>\n<li>The investor must be a Saudi natural person or legal entity.<\/li>\n<li>The project must meet all general and specific requirements and specifications set by the competent authorities, and public services must be available on-site.<\/li>\n<li>The company\u2019s capital as specified in the articles of incorporation shall serve as the basis for financing, such that the company\u2019s capital at the time the loan is submitted or approval is obtained shall not be less than (25%) of the estimated investment costs of the project if the company is in the process of being incorporated; for existing companies, the financing structure shall be (40% equity and 60% debt)<\/li>\n<li>Lending should be limited to projects located in less developed cities or governorates that possess tourist attractions and are emerging tourist destinations, and whose population is less than one million, according to the latest statistics from the General Statistics Authority.<\/li>\n<li>If the project is to be built on land owned by the investor, the land and buildings of the project shall be mortgaged, or a bank guarantee equal to the value of the loan shall be provided, provided that the bank guarantee remains valid until the loan is repaid and its value is reduced by an amount equal to the installments paid toward the loan.<\/li>\n<li>If the project is to be built on land not owned by the investor, a mortgage must be taken out on another property whose appraised value exceeds the loan amount by 30%, or a bank guarantee equal to the loan amount must be provided.<\/li>\n<li>If the project to be financed falls under the third category of the lending scope (heritage hotels), a bank guarantee must be provided for the loan.<\/li>\n<\/ul>\n<p><span style=\"color: #800000;\"><strong>Lending Terms<\/strong><strong>:<\/strong><\/span><\/p>\n<ul>\n<li>Lending is limited to projects that are planned to be constructed or for which the completion rate of the project\u2019s buildings does not exceed 50% of the total project area. The beneficiary is entitled\u2014provided they have not violated the financing terms\u2014to receive additional financing to expand the project, not to exceed (50%) of the value of the current financing, provided that (70%) of the financing amount has been repaid on a regular basis and all required documents have been submitted to the Ministry of Finance, along with the necessary guarantees.<\/li>\n<li>If the investor does not begin implementing the project within one year of the date of the loan agreement, the loan shall be canceled unless there is a compelling justification for the delay.<\/li>\n<li>An investor may not change the project\u2019s implementation or operation plan without the approval of the Ministry of Finance and the General Authority for Tourism and National Heritage.<\/li>\n<\/ul>\n<p><span style=\"color: #800000;\"><strong>Documents Required for the Loan<\/strong><strong>:<\/strong><\/span><\/p>\n<p>Applications are submitted through the General Authority for Tourism and National Heritage (General Directorate of Tourism Investment) via:<\/p>\n<ul>\n<li>Submit documents proving the investor\u2019s (individual or company) financial standing and ability to complete and operate the project.<\/li>\n<li>The economic feasibility study for the project has been prepared and approved by a licensed firm.<\/li>\n<li>A copy of the title deed for the land on which the project will be built, or a lease agreement if the project land is leased, provided that the lease term is no shorter than the loan repayment period; a site map must also be attached.<\/li>\n<li>The project's engineering drawings have been approved by a licensed engineering firm and certified by the municipal secretariat and the General Authority for Tourism and National Heritage.<\/li>\n<li>A copy of the project's building permit issued by the municipal office or city government.<\/li>\n<li>The technical specifications have been approved by the engineering firm responsible for the project.<\/li>\n<li>Lists of equipment, fixtures, and furniture to be procured for the project, including a brief description of each item and copies of the corresponding quotes.<\/li>\n<li>Sign a pledge to submit a certificate from the Labor Office confirming compliance with the Saudization rate for the project during its actual operation.<\/li>\n<\/ul>\n<p><span style=\"color: #800000;\"><strong>Loan amount<\/strong><\/span><\/p>\n<p>The loan is intended to finance buildings, facilities, equipment, and furniture, provided that the amount allocated to equipment, facilities, and furniture does not exceed (20%) of the loan, and the maximum loan amount, including buildings, equipment, and furniture, shall be equivalent to (50%) of the estimated cost approved by the Ministry of Finance for the entire project, not to exceed (100) million riyals.<\/p>\n<p><span style=\"color: #800000;\"><strong>Loan Application Review<\/strong><\/span><\/p>\n<p>After an investor submits a loan application, the application is evaluated based on the following:<\/p>\n<ul>\n<li>The Investment Department at the General Authority for Tourism and National Heritage conducts a preliminary study of the project\u2019s costs based on the information, documents, and supporting materials attached to the application.<\/li>\n<li>A committee from the Ministry of Finance and the General Authority for Tourism and National Heritage visits the site of each project to verify the project\u2019s location and ensure that the completion rate has not exceeded 50% of the total buildings, in accordance with the completion assessment form approved by the Ministry of Finance.<\/li>\n<li>The application is sent to the General Directorate of Domestic Loans and Subsidies at the Ministry of Finance to be reviewed and examined by the Committee for the Review and Examination of Borrowing Applications, and then approved.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #800000;\"><strong>Loan Disbursement<\/strong><\/span><\/p>\n<p>A \u2013 The amount allocated for buildings is disbursed in ten installments at a rate of 10% per installment. These installments are disbursed based on an inspection report by a committee formed by the Ministry of Finance, with the participation of a member from the General Authority for Tourism and National Heritage, after the investor submits the project consultant\u2019s reportfor the project. The Ministry of Finance has the right to suspend loan disbursements if it determines that the investor has breached its obligations under the loan agreement.<\/p>\n<p>B \u2013 The amount allocated for equipment, supplies, and furniture shall be disbursed as follows:<\/p>\n<p>An initial payment of (25%) of the allocated amount, to be made after submission of the supporting documents and evidence for the payment (contract, invoice, receipts from the supplier or exporter, and a letter of credit import statement), provided that at least (60%) of the construction and architectural work on the project building has been completed.<\/p>\n<p>A second payment equal to (50%) of the allocated amount, following the completion of the entire project building, the full delivery of the materials to the project site, and the installation of (50%) of them...<\/p>\n<p>A third installment equal to (25%) of the loan amount allocated for it, upon completion of its installation and the on-site verification of its specifications by the Ministry of Finance\u2019s inspection committee.<\/p>\n<p><span style=\"color: #800000;\"><strong>Loan Repayment<\/strong><\/span><\/p>\n<p>The amount drawn down from the loan is repaid in ten equal annual installments, the first of which is due four years after the date of the loan agreement.<\/p>\n<p><span style=\"color: #800000;\"><strong>From the newspaper \u201cAmlak\u201d<\/strong><\/span><\/p>\n<p>It is worth noting that the General Authority for Tourism and National Heritage has posted the program\u2019s guidelines and forms on its website (<a href=\"http:\/\/www.scta.gov.sa\/\">www.scta.gov.sa<\/a>)<\/p>\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">Minutes<\/span><\/span>Given the need to establish a framework for tourism financing, the General Authority for Tourism and National Heritage worked to establish this program based on the tourism development strategy approved by the state in 1425 AH, which emphasized the need for state intervention to stimulate investment in tourism projects. The resumption of tourism investment financing followed the issuance of Cabinet Decision No. (209) dated 6\/22\/1430 AH, which stipulated \u2026 <a title=\"A Sea of Terms and Conditions\u2026 \u201cAmlak\u201d Newspaper Publishes the Detailed Regulations for the Hotel and Tourism Project Financing Program\" class=\"read-more\" href=\"https:\/\/amlak.net.sa\/en\/7471\/\" aria-label=\"Read more about the terms and conditions... \u201cAmlak\u201d newspaper publishes the detailed regulations for the hotel and tourism project financing program\">Read more<\/a><\/p>","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[118],"tags":[],"class_list":["post-7471","post","type-post","status-publish","format-standard","hentry","category-hospitality-entertainment"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":""}},"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","trp-custom-language-flag":"","event-thumbnail":"","event-medium":"","event-large":"","event-hero":""},"author_info":{"info":["\u0627\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"<a href=\"https:\/\/amlak.net.sa\/en\/category\/markets\/hospitality-entertainment\/\" rel=\"category tag\">\u0636\u064a\u0627\u0641\u0629 \u0648\u062a\u0631\u0641\u064a\u0647<\/a>","tag_info":"\u0636\u064a\u0627\u0641\u0629 \u0648\u062a\u0631\u0641\u064a\u0647","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/7471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=7471"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/7471\/revisions"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=7471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=7471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=7471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}