Qatar Tribune, 1 July 2024: The Municipality Ministry has issued Qatar Ministerial Decision No. 123/2024, reducing the rental value of the Industrial Area land affiliated with the ministry.

The move aims to support the growth of the national economy and enhance the role of the private sector in diversifying the economy, and contribute to supporting the development process witnessed by the country.

The minister has stated that the decision to reduce the rental value of land in the ministry’s industrial zone aligns with the recently launched strategy and the objectives of the Third National Development Strategy 2024-2030.

This strategy aims to achieve sustainable economic growth, improve market mechanisms, enhance the competitiveness of local products, and support Qatar’s efforts towards achieving its National Vision 2030.

The decision also aims to support activities on the land of the industrial zone affiliated with the Municipality Ministry, whether they are commercial, industrial, logistical, or for workers’ housing purposes.

The decision states that reducing the rental value of land allocated for commercial activities from QR100 to QR10 per square metre annually, which is a 90% reduction.

Additionally, it reduces the rental value of land for logistics projects from QR20 to QR5 per square metre annually, and land with an industrial licence to QR5 per square metre annually, compared to QR10 previously.

Regarding mixed activities, the ministerial decision has clarified that if the land area is used solely for commercial purposes without industrial or logistical activities, the rental value is QR10 per square metre annually.

This rate also applies to food outlets, commercial activities supporting industrial or logistical operations, petrol stations, and car service stations, based on the covered area of the commercial buildings.

The decision indicated that if the land is used for non-commercial activities, such as workers’ housing as a service annex to the industrial or logistical facility, the rental value is calculated at QR5 per square metre annually.

As for the land fully used for residential purposes without the availability of industrial or logistical activity, the rental value is calculated at QR10 per square metre annually.

The ministerial decision stated that for exhibition activities, the rental value is QR5 per square metre annually if the exhibition displays goods related to the existing on-site activity and for the same tenant.

However, if the exhibition or existing property is for commercial use by someone other than the actual land investor, the rental value is QR10 per square metre annually for the covered area.

The new decision states that contracts for the land of the industrial zone affiliated with the Municipality Ministry will be for 25 years from the date of receiving the leased land.

The rental value can be reviewed every five years from the implementation date of the ministerial decision, and after this period, the Municipality Minister may reconsider the value.

The ministerial decision to reduce the rental value of the ministry’s Industrial Area land aims to strengthen the private sector’s role in diversifying the national economy.

It allows the private sector to drive economic growth and focuses efforts on highly productive, specialised, and competitive economic clusters.

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