Ministry of Industry introduced a rent-to-own system for industrial land, allowing investors to launch their projects without bearing the full cost of the land during the initial stages. The move comes as part of the efforts of the Industrial Development Authority (IDA) to provide innovative financing and regulatory solutions to support investors and promote the growth of the industrial sector, particularly small and medium-sized enterprises.
The Ministry said in a statement on Saturday, August 29, 2026, that the rent-to-own system starts with a seven-year term and extends for up to 21 years. Rent is calculated at an annual rate equivalent to 5% of the price per square meter of the land, with an annual increase of 10%.
The rental value will be reassessed every seven years in accordance with the applicable regulations. Investors may apply to purchase the land after demonstrating their seriousness by commencing actual operations at the project and obtaining an operating license and an industrial registration certificate.
Upon ownership, all amounts previously paid as rent will be deducted from the total value of the land, based on the approved price at the time the purchase application is submitted. The investor must then pay 25% of the remaining value, with the balance payable in three annual installments subject to the applicable interest rates.
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