Regulations for Allocating a 10% Share to Landowners in Investment Housing Projects

Based on the provisions of Article (4/First) of the Investment Law No. (13) of 2006, as amended, and Article (4/First) of the Regulation for the Sale and Lease of State and Public Sector Real Estate and Lands for Investment Purposes and Musataha No. (6) of 2017, as amended by Regulation No. (5) of 2018, the National Investment Commission has issued regulations for allocating a 10% share to landowners in investment housing projects. These regulations aim to ensure the fair distribution of land and promote the efficient use of resources.

Key Points

  1. Determining the Landowner’s Share:
    • The landowner's share of 10% of the total area of the investment housing project is determined initially by the landowner before preparing the master plan for the project.
    • The master plan must be approved by the relevant sectoral authorities in coordination with the licensing authority and in accordance with the law, without compromising the basic and sectoral design of the project.
  2. Providing Infrastructure:
    • The investor is obligated to provide infrastructure services (water, electricity, sewage, roads, gas, communications, and other services) with design capacities suitable for the 10% area up to its external boundaries according to the approved designs.
    • These services must be delivered to the landowner ready for connection.
  3. Exceptions from the 10% Allocation:
    • The 10% allocation does not include areas designated for green spaces, project services, or commercial components of the project.
  4. Compliance with Maximum Share:
    • The maximum 10% share must be adhered to and cannot be exceeded. This share serves the interests of the state and cannot be reduced under any circumstances. It is deducted only once.
  5. Approval of the Plan:
    • Project plans are approved only after determining and allocating the 10% area to the landowner.
  6. Undivided Allocation:
    • The 10% area cannot be divided by the investor and must be delivered to the landowner as a single plot of land.
    • For projects exceeding 600 dunams, the area can be allocated as no more than two separate plots, each no less than 30 dunams. The investor must re-approve the master plan and distribute activities according to the remaining area.
  7. Prior Allocation:
    • The 10% area must be determined and allocated before starting the investment project.
  8. Retroactive Application:
    • For projects that started without determining the 10% area, the provisions of paragraph (1) above apply.
  9. Clarifying the Purpose of Investment:
    • The General Secretariat of the Council of Ministers / Legal Department Letter No. (46118/21/1/2/5 on 18/12/2022) must be considered regarding the purpose of investing, utilizing, trading, musataha, or investing in that area.
  10. Cabinet Decision:
    • Cabinet Decision No. (245) of 2019, as amended by Decisions No. (23374) and (23556) of 2023, regarding the investment of the 10% area allocated to the landowner and announcing it as a new investment opportunity, must be considered.
  11. Scope of Application:
    • These regulations apply to all residential investment projects covered by Regulation No. (6) of 2017, as amended.

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