Last Wednesday evening, the Ministry of Housing held a workshop at its headquarters in Riyadh to discuss the draft real estate leasing regulation, with the participation of a number of experts and interested parties, including academics, real estate professionals, and legal experts.
Engineer Muhammad bin Saleh Al-Bati, General Supervisor of Rental Sector Regulation at the Ministry of Housing, at the start of the workshop, expressed his thanks and appreciation to the attendees for their interest in participating in the workshop to share their opinions, suggestions, and comments on the draft real estate leasing regulation, emphasizing the Ministry’s commitment to establishing appropriate regulations for this sector and creating safeguards to protect all relevant parties.
In his remarks, Al-Bati said: ”I thank you for your commitment to attending this workshop, and we assure you that the Ministry of Housing is always keen to involve various segments of society in its programs and initiatives, and to take their suggestions and observations into account, based on our belief in a positive and effective partnership with members of society, including professionals and interested parties such as yourselves. There is no doubt that the rental market in the Kingdom is of the utmost importance, which compels us to pay close attention to it and work to regulate it in the best possible way to ensure protection and benefit for tenants, landlords, and real estate brokers alike, This is part of the Ministry’s efforts to achieve one of its strategic objectives: improving the performance of the real estate sector and increasing its contribution to GDP. The Ministry’s launch of the “Ijar” is further proof of its commitment to regulating this sector, which accounts for nearly half of the Kingdom’s housing market, as it is one of a series of programs and initiatives launched by the Ministry aimed at supporting supply, stimulating demand, and regulating and facilitating a balanced and sustainable housing environment.”
The General Supervisor for the Regulation of the Rental Sector reviewed with workshop participants a number of topics related to the real estate rental system in the Kingdom. Discussions covered its objectives and scope of application, the main challenges and obstacles it faces, the mechanisms followed in residential leasing, the definition of those entitled to lease, as well as methods for extending and amending contracts, and the benefits of the standardized lease agreement, which is expected to be launched during the first quarter of 2017 and will provide numerous advantages for tenants, landlords, and real estate brokers alike, while reducing potential disputes among the contracting parties, It also serves as a binding enforceable instrument.
