RIYADH — Saudi Arabia has introduced new regulations allowing eligible municipal investment projects to extend their lease agreements before their current contracts expire, providing greater flexibility for long-term development and investment.

The Ministry of Municipalities and Housing announced that the new rules apply to major municipal investment projects whose lease agreements were signed before the updated Municipal Property Disposal Regulations came into effect.

According to the ministry, the initiative is intended to improve the investment climate, increase the efficiency of municipal real estate assets, and support expansion and redevelopment projects across the Kingdom.

Under the new framework, qualified investors can request lease extensions while their contracts remain valid. This will allow them to continue expanding existing projects, modernize facilities, and introduce new investments that increase the value of municipal properties.

The ministry said the regulations are designed to create a more stable and attractive investment environment by encouraging project improvements, boosting operational performance, and enhancing the competitiveness of municipal investment opportunities.

Officials added that the policy is expected to strengthen private sector participation, improve public facilities and municipal services, and contribute to higher living standards in cities and governorates throughout Saudi Arabia.

The new governance framework also aims to protect municipal interests while enabling investors to continue developing their projects, reinforcing public-private partnerships and maximizing the economic value of municipal assets.