MCI Real Estate Shareholding Commission Pays Back More Than Five Billion and Six Hundred Million Riyals for More Than 25 Thousand Shareholders

02 Sep 2014
Holding Two Auctions This Month for the Sale of Four Stumbled Shareholding Lands in Abha and Taif

Legal, Accounting and Marketing Liquidation Works are done by the Commission without Deduction from Shareholders` Equity
H.E. Minister of Commerce and Industry Dr. Tawfiq Bin Fawzan Al-Rabiah Chairman of the Real Estate Shareholding Commission appreciates highly the support and guidance of the Custodian of Two Holy Mosques for the liquidation of Real Estate Shareholdings through the committee formed at MCI and the membership of the concerned authorities, and what the Committee has received of fruitful cooperation which resulted in paying back the equity for the affected shareholders, especially those contributions which have been stumbling for more than ten years.  

  This came in the committee semi-annual report for the current fiscal year 2014 AD, which has been released recently, including the committee achievements during the last six months, where one hundred stumbled contributions have been liquidated since the start of the Committee work, either through the direct sale of properties, or through auctions held by the Committee for selling the lands of such contributions, or through a settlement with the owner to give back the equity of the shareholders and to submit accounting reports after the completion of liquidation of such contributions. 

The Committee has completed the payment of equity to the shareholders in all the liquidated contributions through money transfer to their personal accounts directly, after updating their data with the banks, that have been contracted with to open a special account for each contribution, where the money transfer has been   started in twenty-two contributions during the first half of 2014 AD. Therefore, the total number of shareholders who have received money transfer since the start of the Committee's work is (21,866) with total amount of SR (4,281,452,036). There are (3,591) shareholders pending updating their data, then their amounts will be transferred directly.

 According to the report issued periodically every six months, the committee was able, during the first half of this year, of selling the Real Estate of the contributions known as the contributions of "Kingdom Dates" , "Shalala Land" through real estate auctions, and selling the properties of "City Center" , "Scrap Land in Jeddah" through direct sales, after the Committee has announced, for a sufficient period, about receiving bids from those interested in the direct purchase of these properties, the sales have achieved lump sums, estimated at more than four hundred and thirty one million and three hundred thousand riyals. Therefore, the total collected from the sale of the liquidated Real Estate shareholdings are more than five billion and six hundred million Riyals. 

The Real Estate Shareholding Commission has received from the Ministry of Finance, since its establishment,the amount of forty-seven million riyals, this is for the implementation of the Cabinet decision to allocate a sum of money to be spent as rewards to the Committee members and its contracts with cadres, commissions, consulting, Islamic Law, legal and Real Estate Offices and others whom their assistance are needed, where the total government subsidies, received by the Commission up to date, are forty-seven million Riyals, out of this amount more than twenty-eight million and six hundred thousand riyals have been disbursed. 

The Commission is working in accordance with the Cabinet Resolution regarding the approval of the work mechanism of the Real Estate Shareholding Commission, which the eighth paragraph states: to determine the fees and expenses of those rendering assistance to the Commission, such as the offices of accounting, legal or engineering, provided that such fees should not exceed 5% of the total of the shareholding sale. Due to the stumbling of the contributions for a variety of reasons, which vary from one contribution to another, and thus the means of its solutions do vary as well, also the cost of these solutions varies greatly,  with the wide divergence in the nature of the available assets to be disposed of in the sale between one contribution and another, so there are some winning contributions and others losing, and some contributions assets can be disposed of by sale and the other could not be disposed of its assets either temporarily or permanently, so the Real Estate Commission has developed a mechanism based on the collection of part of the pursuit resulting from the sale of some shareholding lands, or part of it depending on the circumstances of each contribution, which is the amount beyond the value of the shareholding, being outside the rights and revenues of the contribution, so this amount to be paid and disbursed for all the contributions and all what they need of accounting, legal, engineering, consulting and marketing works, the disbursement will not include the committee or its employees, so the Commission is working to engage the services and assistance of the private sector without loading that on the shareholders. Therefore, the total amount of the pursuit received by the Commission since its establishment until the first half of 2014 AD, forty-five million and nine hundred thousand riyals,  nearly twenty-six million riyals have been disbursed.

The Real Estate Shareholding Commission has held twenty-seven meetings during that period headed by H.E. the Chairman of the Commission with the presence of the Commission members who are the representatives of the concerned authorities such as, the Ministry of Interior, the Ministry of Finance,   the Ministry of Justice and the Ministry of Municipal and Rural Affairs. During those meetings, the Committee discussed (116) topics   related to liquidated Real Estate Shareholdings or those still under study by the Commission with total number of (252) shareholdings. 

The Commission`s report pointed out its determination to liquidate a new number of Real Estate shareholdings in the coming days, through holding new public auctions in Abha and Taif to liquidate four contributions (Fajr Abha, Dorrat Abha, Shaza Al Qunfudah and Um Al Ma`an) in order to sell the lands of those contributions, then to complete the liquidation work, after finishing the accounting and legal procedures and stating the disbursement amounts for the shareholders.
Last Modified 25 Dec 2018