The draft executive regulations for the Leasing of State-Owned Real Estate The General Authority for State-Owned Real Estate has the right to suspend the leasing process if neighbors of the property to be leased by a government entity object before the contract is signed and their reasons are valid, and the regulations set forth conditions for subleasing the property to third parties in a manner that serves the public interest. “Amlak” outlines the key provisions of the regulations:

Leasing from Government Entities

The regulations allow a government entity wishing to lease property to do so from another government entity through a direct agreement, in accordance with the provisions of the law.

Leasing to Foreign Nationals

Government agencies may lease to foreign nationals in accordance with the employment contracts concluded with them that stipulate the right to housing.

Market Price Analysis for Rentals

The regulations require that, when renting, a market price study be conducted based on prevailing market rates, previously negotiated prices, internally and externally approved pricing benchmarks, and any other criteria approved by the Authority, The results of the study must also include the determination of an upper limit for the expected total value of the lease.

Committees for Direct Agreement and Bid Opening

In accordance with the regulations, the government agency shall form one or more committees for direct agreements, one or more committees for opening bids, and one or more committees for reviewing bids.

Suspension of the Leasing Process in Case of Objection

The Authority has the right to suspend the leasing process if neighbors of the property to be leased by the government agency object before the contract is signed and their reasons are valid.

Leasing by Two Entities in a Single Property

The regulations authorize the Authority, upon receiving requests from government agencies wishing to lease, to offer a single property for lease to two or more government agencies, provided that this would rationalize financial costs for the government entities and optimize the use of the property to be leased, without compromising those entities" need for real estate or the nature of their work.

11 Ministries Subject to the Leasing System

The General Authority for State Real Estate has required 11 ministries to operate in accordance with the executive regulations of the leasing system. The list of ministries includes Health, Sports, Commerce, Municipal and Rural Affairs and Housing, Justice, Investment, Education, Energy, Industry and Mineral Resources, Finance, and the Ministry of Foreign Affairs.