Leases for tourism projects granted extensions

Leasing terms for tourism projects have been granted extensions in order to provide high quality tourism services, create more jobs for citizens and improve the preservation of the environment.

“The procedures are underway to put the Cabinet decision into effect to extend leasing terms for tourism projects in the Kingdom,” said the Saudi Commission for Tourism and National Heritage (SCTNH) media department on Tuesday.
Minister of Municipal and Rural Affairs (MoMRA) Abdul Lateef Al-Sheikh recently issued a circular to municipalities across the Kingdom ordering them to implement this decision with immediate effect, it added.
Moreover, a royal decree was issued to grant tourism locations additional leasing terms of up to 25 years, and for projects whose volume of investment reaches over SR20 million, leasing terms may reach up to 50 years, maximum, in accordance with specific criteria.
Notably, the draft of this resolution was prepared jointly by the SCTNH and MoMRA and submitted to the Cabinet for approval.
SCTNH had proposed certain amendments to the leasing regulation to be developed as a point-based system. In this respect, a committee was formed in which representatives from MoMRA, the Ministries of Finance and Agriculture, and the SCTNH participated in order to set the required mechanism for extending the leasing terms for tourism locations and sites.
Notably, MoMRA and the SCTNH are also working together to rehabilitate city centers in the Kingdom in order to give them a new look to the historic identity by striking a unique balance between modernity and tradition.
These city center rehabilitation projects across the Kingdom include a number of cultural, social, economic programs and activities including promoting, supporting and developing the handicraft sector, which will make city centers attractive destinations for tourists and investors.