Updating Saudi Ports Leasing Regulations Promotes Investments
“Saudi Ports Authority has affirmed that updating the Port Leasing Regulation enhances returns and attracts Investments
The amended regulations for leasing the properties of the Saudi Ports Authority emphasize the importance of considering inflation rates, prices in neighboring areas, regional and global ports, and indirect income from leasing.
These changes aim to encourage investment in port operation services and support investment activities and value-added services, including ancillary services. The pricing mechanisms are now to be reviewed every five years, instead of every three.
Strategic Enhancements
Khaled Al-Ghaith, Vice President for Strategy and the official spokesperson for the Saudi Ports Authority, highlighted that the updates are designed to enhance the investment returns of Saudi ports and stimulate both national and international investments.
The updates aim also to support the private sector and invest in value-added projects at competitive and fair prices. Al-Ghaith stressed the importance of considering the opinions of investors in the maritime transport sector.
Investment Attraction and Development
The adjustments include the encouragement of the development and investment in nine new logistic areas and centers in key ports.
This move is part of efforts to develop and offer investment opportunities in logistical areas to the private sector.
Rental Value and Asset Utilization
The proposed new amendments set the rental value of fixed installations, movable assets, and marine docks based on the evaluations by the Saudi Authority for Accredited Valuers.
Additionally, rental values vary by square meter, with submerged lands below sea level valued at half, depending on their location as per the regulations.
Engaging Stakeholders
A draft of the updated leasing regulations is available for public comment until February 27, aiming to gather input from interested parties. Moreover, this inclusive approach ensures that the regulations align with the strategic objectives of the transport and logistics sector.
Comprehensive Application, Exemptions
The regulations apply to all properties of the “Ports” including lands, buildings, offices, warehouses, docks, tanks, silos, industrial, commercial, residential properties, service sites, machinery, vehicles, equipment, and other movable assets.
Finally, the updates grant the Ports Authority the right to approve the allocation of lands and facilities to government bodies, charitable associations, and non-profit organizations, exempting them from rental values according to their actual needs.
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