Ministry of Health restricts investment of its sites to public auctions
Minister of Health Dr. Ahmed Al-Awadi issued Ministerial Decision No. 326 of 2026 regarding the amendment of the regulations governing the controls and conditions for the investment and exploitation of sites affiliated with the Ministry by third parties. This decision establishes a new regulatory framework for site investment procedures, tendering mechanisms, contract monitoring, and investor oversight.
The decision stipulates that the leasing and exploitation of sites affiliated with the Ministry of Health must be conducted through public bidding, aiming to provide opportunities for the widest range of investors and to achieve the highest possible price, while subjecting tendering and contracting processes to the relevant regulatory controls and procedures.
The decision assigned the General Services Administration within the Services Affairs Sector the responsibility of monitoring the investment and exploitation of all Ministry-affiliated sites by third parties, in coordination with concerned entities. This includes receiving requests from health regions and departments regarding sites and proposed activities, as well as reviewing applications from investors wishing to exploit these sites.
Furthermore, the Administration is tasked with monitoring bidding contracts, ensuring investors’ compliance with terms and conditions, and tracking payments due to the Ministry in coordination with Financial Affairs. It is also responsible for preparing bidding specifications and requirements in collaboration with relevant departments.
Regulatory Approvals Prior to Tendering
The decision mandated taking necessary steps to obtain approvals from state regulatory authorities for documents and contracts related to site investment and exploitation, in accordance with applicable laws and procedures, and in coordination with the Financial Affairs Authority.
It required that any party wishing to exploit a site submit an application to the General Services Administration, specifying the total area of the site, the nature of the activity, and the estimated investment value. The activity must fall within the approved list, accompanied by a brief project study and a plan illustrating the site’s location and area.
The decision authorized adding new activities to the approved list based on the recommendation of the Services Sector and approval by the Minister. It also prohibited repeating the same activity for more than one investor or adding other activities or areas unless recommended and approved according to specified controls.
Prohibition on Investment by Employees and Their Relatives
The decision prohibited employees of the Ministry of Health and their first- and second-degree relatives from applying to invest in Ministry-affiliated sites. It also banned health regions, departments, and any entity within the Ministry from directly engaging in investment activities under their jurisdiction, except in accordance with the controls and conditions outlined in the regulations.
Tendering and Implementation Monitoring
According to the decision, the General Services Administration receives investment applications and prepares bidding specifications, before forwarding them to the Financial Affairs Authority to initiate tendering procedures in line with relevant circulars from the Ministry of Finance.
The Administration also reviews submitted bids and issues the necessary recommendation for awarding the contract, before forwarding it to the Financial Affairs Authority to complete contracting procedures in accordance with prevailing regulations and systems.
The Administration’s responsibility continues throughout the contract period through monitoring implementation, conducting periodic and surprise inspections of sites covered by contracts, verifying investors’ compliance with general and specific conditions, and monitoring health requirements for staff working in cafeterias, in coordination with relevant departments within the Ministry.
If an investor withdraws from completing contracting procedures or if the contract is terminated for any reason, the decision authorizes the General Services Administration to re-tender the site for the same activity, in accordance with public interest requirements.
No Subleasing
The decision emphasized that no site affiliated with the Ministry may be leased except through public bidding. It prohibited investors from using the site for purposes other than those designated or from subleasing it, while adhering to the conditions specified in the bidding documents.
The Ministry is authorized to terminate or cancel contracts with investors for reasons of public interest.
The decision specified that the contract period begins from the date the investor takes possession of the site, as documented in a handover report, which must not exceed one month from the date of signing the contract. The lease duration in the contract and bidding documents is determined on a case-by-case basis, in accordance with Ministry of Finance circulars.
The decision also regulated cases where investors delay signing the handover report, stipulating that they be notified at their fixed address with the administrative authority, with the contract period calculated from the date of notification according to the conditions in the bidding documents.
Health and Engineering Requirements for Each Activity
The decision mandated that bidding documents include health and engineering requirements, inspection and monitoring mechanisms, and the responsible authority, based on the nature of the investment activity.
These regulations apply to all sites owned or exploited by the Ministry of Health. The decision further stipulated the repeal of Ministerial Decision No. 44 of 2025 and any provisions conflicting with its terms, to take effect from the date of issuance and be published in the Official Gazette.
