Engineer Mohammed Al-Bati, project director of the “Ejar” program at the Ministry of Housing, explained that it is difficult to set fixed rental rates for residential units in various cities across the Kingdom at this time and require landlords to adhere to them, given the lack of an accurate database that would allow for this.

Al-Bati explained that the Ministry is working diligently on everything that could help regulate the rental market in the Kingdom, noting that the Ministry is set to launch the first phase of the “Ijar” system shortly.

He added that the first phase involves registering real estate brokers through whom lease agreements will be processed, noting that the “Ijar” system safeguards the rights of all parties involved in the rental process—the landlord, the tenant, and the broker—by utilizing an electronic mechanism characterized by its clarity and ease of use.

The “Ijar” system governs the relationship between the landlord and the tenant by documenting the lease agreement, and connects real estate agencies in the Kingdom to a dedicated technical network that provides information on tenants and their credit history regarding rent payments and delinquencies, as well as payment schedules—whether monthly, semi-annual, or annual—along with six other services.

Through its online platform, “Ijar” provides a standardized, notarized lease agreement that is mutually agreed upon by the landlord and tenant to facilitate the conclusion and notarization of the contract. The wording can be updated to ensure that the model electronic lease agreement is enforceable in court.