The Peninsula
Doha, Qatar: As an initiative to support growth of national economy, rental value of Ministry of Municipality land in the Industrial Zone allocated for commercial activities have been reduced from QR100 to QR10 per sq metre annually.
The Minister of Municipality H E Abdullah bin Hamad bin Abdullah Al Attiyah issued Ministerial Decision No. 123 of 2024, which aims to decrease the rent of plots of land in the Industrial Area under the Ministry’s jurisdiction in comparison to the rental rates set in the previous ministerial decision.
The ministerial decision shall be implemented on the day following its publication in the Official Gazette. The decision aims to support supportive activities on the lands of the Industrial Area affiliated with the Ministry of Municipality, whether they are commercial, industrial, logistical activities or for workers’ housing purposes.
It stipulates reducing the rental value of lands allocated for commercial activities from QR100 to QR10 per square meter annually, a 90% reduction.
This is in addition to reducing the rental value of lands for logistics projects from QR20 to QR5 per square meter annually and lands with an industrial license to QR5 per square meter annually, compared to QR10 previously.
Minister of Municipality, in a statement, said that issuing the decision to reduce the rental value of the Ministry’s Industrial Area lands comes within the framework of the strategy recently launched by the Ministry and in implementation of the objectives of the Third National Development Strategy 2024-2030.
He said that the initiative aims to achieve sustainable economic growth, improve market mechanisms, and improve the improve the competitiveness of local products as part of the country’s ongoing efforts to achieve the Qatar National Vision 2030.
Regarding the rental value for mixed activities, the ministerial decision clarified that if the land area is used for commercial activity without industrial or logistical activity, the full rental value is calculated at QR10 per square meter annually.
It is the same rental value of QR10 per square meter for each of the food outlets for the covered area of the existing facility, the lands used in a commercial activity as a service annex for the industrial or logistical activity, the petrol stations and their supporting services, and the supporting car service stations, according to the covered area of the commercial building.
The decision indicated that in the event that land is used for non-commercial activities, such as workers’ housing as a service annex to an industrial or logistics facility, the rental value is calculated at QR5 per square meter annually.
As for lands fully used for residential use without industrial or logistical activity, the rental value is calculated at QR10 per square meter annually.
The decision clarified that when land is used for showroom activities, the rental value is calculated at QR5 per square meter annually if it is to display goods produced, manufactured, or stored on the site for the same existing activity, according to the facility contract, and for the same plot tenant.
This will be calculated at QR10 per square meter annually for the area covered by the existing showroom if it is for commercial use and for someone other than the actual investor of the land.
The new decision stipulates the signing of contracts for Industrial Area lands affiliated with the Ministry of Municipality for 25 years, starting from the date of receipt of the leased land, with the possibility of reviewing the rental value every five years, starting from the date of implementation of the ministerial decision. After the expiry of this period, the Minister of Municipality may reconsider this value.
