The concerned authorities have completed the government study for new regulation for those who exploit the state real estate and the study ended with approving rental fees increases ranging between 10% and 20%, with a proposal to exclude the cooperative societies from the increases for several considerations, the most important of which is its support in controlling inflation in the prices of goods and materials that are sold in coops which help the citizens.
The sources added re-pricing of usufruct fees on state property comes within a broad government plan aimed at increasing non-oil revenues, as the responsible authorities (the State Property Department, the Public Authority for Industry) are working to complete the implementation of this trend, especially since the development of state real estate is a pillar and a major catalyst for a diversified and sustainable economy, reports a local Arabic daily.
The sources told Al-Qabas that the increase in rental fees will be the first since the increases approved by the Ministry of Finance about 5 years ago, specifically the last time was in April 2017, which witnessed various increases, which in some activities reached nearly 150%.
Last August, the Council of Ministers had asked the government institutions to reconsider the list of prices for state property rents, lands and buildings, in addition to assigning the Public Authority for Industry to study a review of the list of prices for commercial and industrial plots, which ensures diversification of income sources and reduced dependence on oil as a single source of income.
Official figures showed that the value of revenues collected from state real estate properties witnessed a significant increase in recent years, as it increased from 55.6 million dinars in the fiscal 2015-2016 to about 92.4 million dinars in 2019-2020, an increase of 66.1%, while the combined revenues amounted to State properties during the past five fiscal years was 432.9 million dinars.
The state property list includes 8,200 agricultural plots, 2,987 chalets, 10 hospitals, 13 parks, 6 service centers, 5 slaughterhouses, and 24 car parks, in addition to other items under which revenues are collected.