The Ministry of Municipalities and Housing adopts regulations for the early extension of lease contracts for investment projects.

Monday 28 September 2026

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The Ministry of Municipalities and Housing has adopted controls for the early extension of lease contracts for large investment projects concluded before the implementation of the updated Municipal Real Estate Disposal Regulations, in implementation of the Royal Decree that includes enabling the early renewal of investment contracts after the expiry of half of the contract period, and setting controls and standards for this, in order to enhance the investment environment, raise the efficiency of municipal real estate investment, and support the implementation of development investments in existing projects.

The ministry explained that the regulations come within the framework of its efforts to promote municipal investment, by enabling investors to extend their lease contracts during their validity period, continue to develop and expand their projects, and add quality investments, which contributes to raising the efficiency of investing in municipal assets and real estate, maximizing their benefit, and supporting urban development goals.

She 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 the growth of the private sector, and contributes to improving the quality of facilities and services, which is reflected in the quality of life in cities and governorates.

The Ministry affirmed that the regulations govern the mechanism for extending investment lease contracts during their validity period for covered projects, within a governance framework that balances preserving the rights of municipal authorities with enabling investors to continue investing and developing. This strengthens the partnership with the private sector, achieves development goals, and increases the economic value of municipal assets. The Ministry invited investors and interested parties to review the regulations for early lease extensions and how to benefit from them via the following link: https://furas.momah.gov.sa/ar/regulations-and-bylaws .

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The Kingdom of Saudi Arabia