During a meeting in the Asharqia Chamber about the role of the region’s secretariat in supporting entrepreneurship
Al-Aradi: Reducing bank guarantees to 25% according to the provisions of the updated municipal real estate disposal regulations
The Undersecretary for Investments at the Eastern Province Municipality, Eng. Hamdan Al-Aradi said that there are significant changes and improvements that have occurred in the provisions of the regulation on disposing of municipal real estate, both in terms of improving contractual terms, by increasing the contract period from 25 to 50 years and reducing bank guarantees from 100% to 25%, or In terms of raising the quality of investment offers, by verifying the eligibility of investors before launching projects that require specialized expertise, and by engaging the private sector by enabling partnership with it through various models.
This came during a remote meeting organized by the Asharqia Chamber, represented by the Young Businessmen Council, on Thursday, October 15, 2020, on the role of the Eastern Province Municipality in supporting entrepreneurship.
Al-Aradi indicated that the goal behind updating the regulation on disposing of municipal real estate is to achieve the four benefits, in terms of (attracting investments, creating mobility in the development process, creating more job opportunities, and improving the quality of life), pointing out that the updated regulation also included several improvements. Related to achieving optimal utilization of municipal real estate, by investing in public parks within two years of adopting the scheme instead of 5 years, which would achieve an increase in the number of parks, raise the level of residential neighborhoods, improve the quality of life, and also by increasing the return on investment of the municipality on long contracts by a percentage Empowering municipalities to rent their properties for temporary purposes, on a daily, weekly, or monthly basis, or according to events and events, which would expand the opportunities for holding events, enhance the economy of small enterprises, and create opportunities for community participation.
Al-Aradi said, during the meeting, that the changes that occurred in the provisions of the regulation on disposing of municipal real estate would affect society and the investment environment, as they target a sustainable urban society with quality municipal real estate and renewable economic activities that contribute to creating jobs for citizens, and providing an attractive investment environment through Extending and handing over contracts, and providing them with more easy standardized procedures, thus supporting the GDP by stimulating local investments and attracting foreign investments, and reducing dependence on the state budget by making optimal use of municipal real estate.
At the end of the meeting, Al-Aradi reviewed the “Sanaa” initiative, saying: (It is an initiative that works in partnership between the Municipality and the Asharqia Chamber to provide a group of lands at a symbolic price to create an incubator investment environment for light national industries that work to diversify investments and local industries for young men and women in the region with an electronic mechanism based on foundations and standards. To choose the best beneficiary, which is conducive to achieving the goals of the vision by reaching the contribution of small and medium-sized enterprises in the GDP from 20% to 35%).
Source: Asharqia Chamber