Ministry of Municipalities and Housing (MOMAH) headquarter
Saudi Arabia’s Ministry of Municipalities and Housing (MOMAH) approved rules allowing the early extension of investment contracts signed before the municipal real estate disposal regulations came into effect while investors may apply to extend lease agreements once 50% of the original contract term has elapsed. 
The ministry said the measure aims to strengthen investment stability, enhance the attractiveness of municipal assets, support the continuity of investment projects, and promote the development of cities and governorates.
To qualify, investors must be current on their financial obligations, with the project already operational and involving major upgrades, comprehensive renovations, additional buildings, or new activities requiring an implementation period longer than the remaining lease term.
Applicants must submit a comprehensive study detailing the proposed works, supported by a feasibility study from an accredited office, with planned improvements exceeding 20% of the value of existing buildings, while the project must not conflict with future municipal plans or development projects.
The rules allow extensions of up to 15 years whether the contract remains within its original term or an existing statutory extension period, although total new extensions granted after the regulations took effect may not exceed 25 years, with further extensions considered under applicable rules.
Investors must submit an extension request with a technical study and implementation schedule, with the execution period not exceeding 10% of the approved extension term unless the minister approves a longer period, while a technical committee will review the request before submitting its recommendation.
If the application includes adding or changing the project’s core activities, investors must complete the relevant regulatory procedures, after which the investment committee will reassess the rental value based on market rates, planned investments, expected returns, and two independent property valuations.
After the required procedures are completed and the ministry grants approval, an addendum specifying the new extension period will be signed, while the rules allow the extension to be revoked or additional time granted if the investor fails to complete the planned works on schedule, subject to the minister’s approval.
Ministry of Municipalities and Housing (MOMAH) headquarter
Saudi Arabia’s Ministry of Municipalities and Housing (MOMAH) approved rules allowing the early extension of investment contracts signed before the municipal real estate disposal regulations came into effect while investors may apply to extend lease agreements once 50% of the original contract term has elapsed.
The ministry said the measure aims to strengthen investment stability, enhance the attractiveness of municipal assets, support the continuity of investment projects, and promote the development of cities and governorates.
To qualify, investors must be current on their financial obligations, with the project already operational and involving major upgrades, comprehensive renovations, additional buildings, or new activities requiring an implementation period longer than the remaining lease term.
Applicants must submit a comprehensive study detailing the proposed works, supported by a feasibility study from an accredited office, with planned improvements exceeding 20% of the value of existing buildings, while the project must not conflict with future municipal plans or development projects.
The rules allow extensions of up to 15 years whether the contract remains within its original term or an existing statutory extension period, although total new extensions granted after the regulations took effect may not exceed 25 years, with further extensions considered under applicable rules.
Investors must submit an extension request with a technical study and implementation schedule, with the execution period not exceeding 10% of the approved extension term unless the minister approves a longer period, while a technical committee will review the request before submitting its recommendation.
If the application includes adding or changing the project’s core activities, investors must complete the relevant regulatory procedures, after which the investment committee will reassess the rental value based on market rates, planned investments, expected returns, and two independent property valuations.
After the required procedures are completed and the ministry grants approval, an addendum specifying the new extension period will be signed, while the rules allow the extension to be revoked or additional time granted if the investor fails to complete the planned works on schedule, subject to the minister’s approval.
