Saudi Arabia exempts investors in Makkah, Madinah from municipal property rent by 75% for 1 year

Majed Al-Hogail, Minister of Municipal and Rural Affairs and Housing

Saudi Arabia’s Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail announced that the Custodian of the Two Holy Mosques King Salman bin Abdulaziz approved the exemption of investors in Makkah and Madinah from municipal property rent by 75% for one year. 

The minister said in a tweet that the value of exemptions exceeded SAR 100 million, which will benefit more than 2,000 facilities.

According to the minister, the decision will apply to all economic activities, except for the following:
 

- The financial and banking sectors that are licensed by the Capital Market Authority (CMA) and the Saudi Central Bank (SAMA).

- Insurance companies, brokers and their representatives.

- Telecom operators.

- National and foreign schools and universities (education sector).

- Central markets for foodstuff and supplies.
 

The exemption period will run from March 1, 2020, until February 28, 2021, Al-Hogail noted.
 

The decision will help alleviate the negative impact of COVID-19 pandemic on investors in both Amanas and the Hajj and Umrah sector. It will also spur cash inflows for investors and will provide a favorable environment for investment in the municipal sector, along with securing jobs for Saudis in the private sector, the minister said.
 

In September 2020, King Salman approved an exemption for investors at 25% of rental value for this year, which is equal to three-month rents.