For the purpose of applying these instructions, the words and phrases mentioned below shall have the meanings specified next to each of them, unless the context requires otherwise:
Ministry: Ministry of Municipal and Rural Affairs.
Minister: Minister of Municipal and Rural Affairs.
Regulation: Regulation for the action regarding municipal real estate.
Municipality: The Secretariat or Municipality.
Municipal Real Estate: Real estate owned by municipalities according to the regulations and instructions.
Investor: A natural or legal person entitled to engage in various commercial and investment activities in accordance with the relevant regulations and rules.
Investment: The employment and operation of municipal real estate with the aim of preserving, developing it, and benefiting from its financial returns in providing and developing municipal services.
Public Competition: Opening the field for competition among investors to invest in municipal real estate and related services through announcements in accordance with the provisions of this regulation and the decisions issued in implementation thereof.
Open Public Competition: A method aimed at reaching the highest price by offering the highest bid in an open gathering after being announced in accordance with the provisions of this regulation and the decisions issued in implementation thereof.
Compensation: The exchange of land or a building owned by others for land or a building owned by the municipality.
Grant Surplus: The area of land allocated to the grantee that exceeds the area specified in the grant order.
Planning Surplus: The area of land that arises from reorganizing land plans.
Regulatory Surplus: The area of land that arises from reorganizing existing residential areas.
Agency: The Ministry's Agency for Planning and Programs.
Controls: Rules issued by the Minister to regulate the investment process in a specific field according to the regulation.
Reference Price: The price that the competent committee deems appropriate not to significantly decrease from.
Pioneering Project: A project that contributes to sustainable development in a specific field or activity, achieving an investment, developmental, or social purpose in terms of investment, employment, technology, or environmental service at the level of the region or governorate, or making the city or governorate a targeted destination.
Innovative Project: An investment project based on an innovative idea registered with a patent or intellectual property rights, achieving an investment, developmental, or social purpose at the level of the region or governorate.
Distinctive Project: A project that adds value to the city or governorate, requiring specific financial, technical, and specialized expertise.
Investment Purpose: What goes beyond the project's own objectives to support ancillary and accompanying investments, stimulating the creation of an investment trend.
Development Purpose: What goes beyond the project's own objectives to support development and improve the surrounding area and environment.
Social Purpose: What goes beyond the project's own objectives to support the local community through employment, healthcare, care, education, or rehabilitation and training.
Periodic Increase: A percentage of the annual investment return required by the municipality to increase this return by this percentage every five years, and it shall be specified in the terms and specifications document when announcing the competition.
Marketing: Engaging a specialized consulting firm to attract investors from within and outside the Kingdom and encourage them to invest in exchange for an agreed percentage according to the controls.
Opening Price: The announced price that the competent committee deems appropriate to open the open public competition.
Public Franchise Companies: Companies granted by the state the right to produce or distribute a commodity or service.

No action may be taken regarding the Real Estate that contravenes the Regulation, instructions, and decisions issued in implementation thereof.

The municipality shall not enter into any agreements or memoranda of cooperation or understanding that would result in a waiver of the action regarding municipal real estate, whether to a public or private entity, except in accordance with the legal procedures.

The municipality has the authority to take action regarding the vacant lands located within its jurisdiction that are not recorded in the municipality's records as owned by it or by any public or private entity, and there is strong evidence suggesting the municipality's potential ownership of these lands, provided that such action does not include sale or the establishment of projects with significant constructions or contracts exceeding a duration of one year.

It is not permissible to cease the preparation of studies, plans, or investment procedures for a public property unless there is a final judicial ruling that removes the municipality's authority over the property, or there is a title deed or explicit legal provision that authorizes the plaintiff to act regarding the property.

The municipality shall not engage with any party in a manner that leads to negligence regarding municipal real estate, and it must report to the competent authority any action that may hinder it from exercising its jurisdiction.

If any party objects to the municipality's action regarding the Real Estate, the municipality must provide its reference with a report on the situation and the Procedure it will take, and provide the agency with a copy of it to offer technical and legal support whenever necessary.

The municipality prepares exclusively the organizational excesses and planning excesses, and provides the relevant investment administration with a copy of it for the purpose of studying its investment.

Regulatory excesses or planning excesses shall not be offered for sale, unless the building regulations do not permit the establishment of independent buildings on them, and the competent investment authority deems it impossible to invest in them. Any excesses that are decided to be sold shall be announced on the website, and an invitation shall be directed to the beneficiary or beneficiaries to complete the sale procedures as specified in the relevant circulars and ministerial decisions.

If it is determined that construction is possible on the planning surplus or the organizational surplus, the relevant department in the municipality shall specify the appropriate type of construction in accordance with building regulations and land uses, in coordination with the department specialized in investment.