Saudi Arabia launches consultation on regulations for investment in municipal lands
The Ministry of Municipalities and Housing opened a public consultation until November 10 regarding controls on investment in municipal lands, including usufruct rights and ownership transfer not exceeding 20%.
The Saudi Ministry of Municipalities and Housing has launched a public consultation on the draft regulations for investing in municipal lands via the "Istitlaa" platform, with feedback being accepted until November 10, 2026, as reported by the "Argaam" platform.
The draft stipulates that the proportion of ownership transfer to the investor shall not exceed 20% of the net developed area under a single payment track.
This is subject to an exceptional joint approval from both the Ministers of Housing and Finance.
The draft also allows the investor to obtain usufruct rights for a share of the land for a specified period, in a step aimed at stimulating development on municipal lands.
What do these terms mean?
Municipal lands: Lands owned by the state or municipalities offered for investment and development.
Usufruct right: The right to use and benefit from the property without owning it, for a specified period of time.
Net developed area: The usable area after deducting roads, utilities, and public spaces.
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