Riyadh’s city government wants developers to build on its land without buying it, a model that could put idle municipal plots to use as the capital pushes more land into development.
Riyadh Region Municipality opened the tender last week with the Ministry of Municipalities and Housing and the National Center for Privatization & PPP. It is the municipality’s first project under this kind of partnership.
The site
The deal covers a 30,015 square meter government plot on Zaid bin Asim Street in Al Narjis, in the north of the city.
The terms
The winning bidder will build, own and operate the project for 50 years, then hand it back to the government.
It can choose the mix: homes, shops, offices or leisure space.
Who can bid
The municipality has invited investors, financial institutions and local and international operators.
Expressions of interest, prequalification and proposals are all open at the same time. Documents are available through the center’s investor portal until Feb. 3, 2027.
Not the only one
Makkah’s municipality is offering a similar 50-year deal for a 166,488 square meter site on Al-Hada Road. Madinah has one for a mall and healthcare site at Sikkah Al Hadid.
The bigger picture
Fees on idle private land have already pushed about 27 million square meters of Riyadh land into development since January.
Now the government is applying the same logic to its own plots, without giving them up.
Why it matters
Land is often the biggest upfront cost for a developer, and this model removes it. The catch is that the asset returns to the state after 50 years, so the returns have to come from running it well.
What to watch
How many bidders it draws, and whether the municipality brings more plots to market the same way.
