Ministry of Municipalities and Housing Approves Regulations for Early Extension of Lease Contracts for Investment Projects

The Ministry of Municipalities and Housing has approved regulations for the early extension of lease contracts for large investment projects concluded before the implementation of the updated municipal real estate disposition regulation, and established the regulatory controls and standards for that, in order to enhance the investment environment, improve the efficiency of municipal real estate investment, and support the implementation of developmental investments in existing projects.

The ministry clarified that the regulations come within the framework of its efforts to enhance municipal investment by enabling investors to extend their lease contracts during their validity period, and to continue developing and expanding their projects, and adding qualitative investments, which contributes to improving the efficiency of investment in municipal assets and real estate, maximizing their utilization, and supporting urban development targets.

It added that the regulations contribute to creating a more attractive and stable investment environment, and encourage investors to develop existing projects and improve their efficiency, which enhances the competitiveness of municipal investment, supports private sector growth, and contributes to improving the quality of facilities and services, reflecting on the quality of life in cities and governorates.

The ministry emphasized that the regulations organize the mechanism for extending investment lease contracts during their validity period for covered projects, according to a governance framework that balances preserving the rights of municipal entities and enabling investors to continue investment and development, which enhances partnership with the private sector, achieves development targets, and raises the economic value of municipal assets.