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Saudi Arabia approved the revised regulations for the municipal real estate transactions, Majed Al Hogail, the Saudi designated Minister of Municipal and Rural Affairs, said.
The updated regulations expanded contractual terms to 50 years to attract capital investments to major projects. The term exempt from rents during construction works is adjusted to a maximum of 10% of the project term, the Ministry of Municipal and Rural Affairs said in a statement.
The new rules also allow the direct and immediate lease of municipal properties for temporary purposes, for up to three months. Bank guarantees are reduced to 25% of the annual bid value from 100%.
The revised regulations also included many controls aimed at raising the quality of life in Saudi cities.
The move comes as part of efforts to develop the municipal investment system to provide an attractive environment to draw quality investments to Saudi cities through providing the appropriate legislative enablers.
This will be achieved in a fair, attractive and competitive environment that raises the private sector’s appetite for investment with municipalities to develop Saudi cities, which in turn will improve the quality of life there.
The updated regulations will contribute to realizing the Saudi Vision 2030, and increasing the private sector contribution to developing cities, Al-Hogail added.
“The ministry aims to provide diverse opportunities to all categories of investors,” the minister affirmed.
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