المملكة: Urgent amendments to municipal real estate…free use and cancellation of industrial lands
Ministry of Municipalities and HousingA package of amendments to Regulation for the disposition of municipal real estate, to regulate investment and development partnership with the private and non-profit sectors, and to activate infrastructure financing mechanisms in various regions of the Kingdom.
The amendments added to the regulation allowed municipalities to dispose of real estate through free use for the benefit of projects and Non-profit associations.
To implement this, the Ministry required the presence of a donor and an entity managing the project to ensure its financial sustainability.
Free usufruct contracts
The Ministry confirmed the absolute prohibition of transferring ownership of municipal property to beneficiaries. It indicated the possibility of extending free-use contracts for periods not exceeding a total of ten years, provided that the project achieves a developmental and social purpose approved within government programmes.
The updates revealed a new regulatory mechanism that allows the allocation of revenues from the sale and rental of municipal real estate to finance and implement infrastructure in housing grant schemes, in accordance with a direct agreement between the Ministers of Municipalities and Finance to determine disbursement controls.
Temporary Event Properties
The regulations set a maximum of six months for investment in temporary event properties, subject to To be extended for a similar period, while allowing real estate to be rented to the private sector to set up directional signs directing vehicles to event sites in accordance with ministerial controls.
The amendments stipulated the removal of industrial lands from the regulations for developing lands allocated for service purposes, so that the development clause was limited to providing service lands with basic services through qualified investors.
This regulatory movement comes as a continuation of the royal order issued in the year 1441 AH, regulating the procedures for public competitions and committees. The municipality formed to increase investment efficiency.
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