Confirmed facts
Council of Ministers Decision No. 282 was published in the Saudi Official Gazette on 11 September 2026.
The decision addresses municipal real estate transferred from the Ministry of Municipalities and Housing to another government entity under a legal instrument where an investment contract exists over that property.
The receiving entity must continue the existing investment contract or, if the contract is cancelled, compensate the investor for all damages resulting from the cancellation.
The Saudi Authority for Accredited Valuers is to coordinate with the relevant authorities to develop a mechanism for valuing damages arising from cancellation.
What changed
The decision creates an explicit continuity-or-compensation mechanism when municipal property subject to an investment contract moves between government entities.
It is an investment-protection and government-contracting measure; it does not amend a tax rate or create a tax incentive.
Who is affected
Investors, developers and operators holding government investment contracts over municipal real estate may be directly affected.
Government entities receiving transferred municipal assets and advisers involved in public-sector real-estate investments should also account for the new mechanism.
Practical implications
Due diligence on municipal-property investments should identify whether the underlying asset may be transferred between government entities and how Decision No. 282 interacts with the investment contract.