The Minister of Municipality in Qatar has issued a new ministerial decision to reduce the rental rates of land in the Industrial Zone in order to support economic growth and emerging businesses. This decision comes in alignment with the country’s vision to diversify its economy and support the private sector. The rental value of lands designated for commercial activities has been reduced from QR100 to QR10 per square meter annually, presenting a significant 90% decrease. Additionally, the rental values for lands used for logistics projects and industrial activities have also been decreased to QR5 per square meter annually.
The aim of this decision is to promote economic activities on Municipal land, whether they are commercial, industrial, logistical, or for workers’ housing purposes. The reduced rental rates are expected to support local industries, attract investment, and stimulate economic growth. The decision is part of a broader effort to support the prices of basic commodities in the local market and enhance the role of the private sector in driving economic development.
The Ministerial Resolution No. (123) for the year 2024 also includes specific guidelines for calculating rental values based on the type of activity being conducted on the land. For example, if the land is used for non-commercial activities such as workers’ housing, the rental value is set at QR5 per square meter annually. However, for lands fully used for residential purposes without industrial or logistical activity, the rental value is set at QR10 per square meter annually.
Furthermore, the new decision stipulates that lease contracts for industrial zone lands affiliated with the Ministry of Municipality will be for a period of 25 years, with the possibility of reviewing rental values every five years. This provides stability for businesses and investors looking to establish themselves in the Industrial Zone, while also allowing for adjustments to be made in line with market conditions.
Overall, the reduction in rental rates for Ministry of Municipality land in the Industrial Zone is a positive development for the local economy. By supporting economic activities and promoting growth, this decision is expected to have a positive impact on businesses, local industries, and the overall economic landscape of Qatar. With a focus on diversification and expansion, this initiative is a step towards building a more robust and resilient economy for the future.
