Riyadh: The Ministry of Municipalities and Housing stressed that allowing early extensions of lease contracts for investment projects covered by the approved regulations, after half of the contract term has elapsed, enhances the sustainability of existing projects, supports their development and expansion plans, and gives investors greater flexibility to continue investing in and developing their projects.
According to Saudi Press Agency, the ministry noted that the regulations cover major investment projects concluded before the updated Law of Disposition of Municipal Real Estate came into effect. They regulate the extension mechanism according to specific criteria that balance protecting municipalities' rights with enabling investors to continue developing their projects and benefit from available investment opportunities.
It said early extensions are part of the ministry's efforts to build a more stable and attractive municipal investment environment, make better use of municipal assets, support the growth of existing projects, strengthen partnerships with the private sector, contribute to the development of cities and governorates, and improve the quality of facilities and services.
The ministry urged investors in projects covered by the regulations to take advantage of the option of early extension and review the regulations, criteria, and mechanism for benefiting from them through the Furas portal.