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New Conditions and Regulations for Investing in 'Health' Sites

New Conditions and Regulations for Investing in 'Health' Sites

Minister of Health Dr. Ahmed Al-Awadi issued Ministerial Decision No. (326) of 2026 concerning the amendment of the regulations governing the controls and conditions for the investment and exploitation of sites belonging to the Ministry of Health by third parties. The decision establishes a new regulatory framework for investment procedures, tendering mechanisms, follow-up, and supervision, ensuring the proper utilization of the Ministry’s sites and enhancing the use of their financial returns to develop health services. It restricts leasing to public auctions and sets controls defining the authorities’ and investors’ powers. Its provisions are as follows:

Article One: The following terms used in these regulations shall have the meanings indicated below:

(a) The Ministry: The Ministry of Health.

(b) The Minister: The Minister of Health.

(c) Sites: Vast areas of space or vacant land owned by the Ministry in accordance with systems, laws, and instructions.

(d) Investment: Utilizing and operating sites belonging to the Ministry with the aim of preserving and developing them, and utilizing their financial returns to provide and develop services.

(e) Public Auction: Leasing sites belonging to the Ministry with the objective of achieving the highest price by inviting the largest possible number of investors to participate.

(f) Investor: A natural or legal person(s) entitled to engage in commercial and investment activities under the laws and regulations of the Ministry of Commerce.

Article Two:

The General Services Administration (Services Affairs Sector) shall be responsible for the following duties and tasks related to monitoring the investment and exploitation of all sites belonging to the Ministry of Health by third parties, in coordination with the relevant departments within the Ministry:

1. Receiving requests from health regions and departments regarding the exploitation of sites for approved activities, as well as requests from investors wishing to invest in one of the Ministry’s sites, for review and appropriate action.

2. Monitoring tender contracts concluded with investors to ensure their compliance with the terms and conditions of the tender.

3. Monitoring payments due from investors to the Ministry and ensuring their compliance with scheduled payments according to the tender contract terms, in coordination with the Financial Affairs Department.

4. Preparing the terms and specifications documents for tenders in coordination with the relevant departments.

Article Three:

All necessary procedures must be undertaken to obtain approvals from the state’s regulatory authorities for all documents and contracts related to the investment and exploitation of sites by third parties, in accordance with the procedures and laws governing such matters, in coordination with the Financial Affairs Authority.

Article Four:

Approval of an investment project is subject to the following conditions:

1. Any entity wishing to invest in or exploit sites must submit a request to the General Services Administration.

2. The request must specify the total area of the site intended for investment.

3. The type of activity for which investment is sought must be specified.

4. The estimated value of the investment must be determined.

5. The investment must be in one of the activities listed in the attached table.

6. A brief study of the project and the type of activity must be submitted.

7. A sketch plan showing the project’s location and area must be provided.

Article Five:

New activities may be added, in addition to those specified in item (5) of Article Four of this decision, based on a recommendation from the Services Sector and approval by the Minister.

Article Six:

It is not permissible for a single activity to be repeated by more than one investor, nor for additional activities or areas to be added, except upon recommendation from the Services Sector and approval by the Minister.

Article Seven:

Regions, departments, or any entity are not permitted to invest in any of the activities on their own initiative, except in accordance with the controls and conditions stipulated in these regulations.

Article Eight: Employees of the Ministry and their first- and second-degree relatives are prohibited from applying to invest in sites under the Ministry’s jurisdiction.

Article Nine:

The General Services Department shall receive investment requests from regions and sites, prepare the bidding specifications, and forward them to the Financial Affairs Agency to conduct the bidding process in accordance with the circular issued by the Ministry of Finance on this matter.

Article Ten:

The General Services Department shall review bids submitted by investors and issue the necessary recommendation for awarding the contract, forwarding it to the Financial Affairs Agency to complete contracting procedures in accordance with the regulations and systems governing this matter. The Department shall also monitor contract implementation throughout their validity period through periodic and surprise inspections of all sites covered by contracts, ensuring compliance with general and specific conditions, and verifying health requirements for workers in cafeterias in coordination with relevant departments within the Ministry. If an investor declines to complete contracting procedures or if the contract is terminated for any reason, the General Services Department may re-offer the site for investment under the same activity, based on public interest considerations.

Article Eleven:

The General Services Department shall oversee all visits to sites under the Ministry’s jurisdiction, propose necessary activities, and present them to the concerned authority for site investment. Upon approval of the activity, the General Services Department shall take the necessary measures in accordance with the controls and conditions stipulated in this regulation.

Article Twelve:

No site under the Ministry’s jurisdiction intended for investment and utilization shall be leased except through a public bidding process.

Article Thirteen:

The site utilized by the investor shall not be used for purposes other than those for which it was designated.

Article Fourteen:

The investor is prohibited from subleasing the utilized site to third parties, subject to the conditions specified in the bidding specifications.

Article Fifteen:

The Ministry may terminate or cancel the contract with the investor for reasons of public interest.

Article Sixteen:

The contract duration shall be calculated from the date the investor takes possession of the site from the Ministry, free of encumbrances and documented by a handover report, provided that this does not exceed one month from the date of signing the contract, subject to the conditions outlined in the bidding specifications.

Article Seventeen:

If the investor delays signing the site handover report, they shall be notified at their permanent address registered with the administrative authority. The contract duration shall be calculated from the date of notification, subject to the conditions specified in the bidding specifications.

Article Eighteen:

The lease duration shall be determined in the contract and stated in the bidding specifications on a case-by-case basis, in accordance with the circular issued by the Ministry of Finance on this matter.

Article Nineteen:

Health and engineering requirements, as well as the inspection and monitoring mechanism and the responsible authority, shall be considered and specified when preparing the bidding specifications, depending on the nature of the activity.

Article Twenty:

This regulation applies to all sites owned or utilized by the Ministry.

Article Twenty-One:

This decision shall be communicated to those required to implement it and shall take effect from its date. Decision No. 44 of 2025, or any provision conflicting with the terms of this decision, is hereby repealed. This decision shall be published in the Official Gazette.

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