The State Property Authority has announced that the <a style="color: #993300;" href="https://amlak.net. and its executive regulations will enter into force starting next Thursday, Rajab 11, 1444, corresponding to February 2, 2023, after the approval of the system and 180 days after its publication in the Umm Al-Qura newspaper, as well as the adoption of its executive regulations by the Authority's Board of Directors and its publication.
In a statement, KDIPA said. The Authority said in a statement that the new system and its executive regulations replace the "State Leasing and Evacuation of Real Estate“ system and its executive regulations, and aims to regulate the process of leasing real estate by government agencies according to their needs, as well as rationalizing the financial costs of leasing, in addition to developing the utilization of the leased property by government agencies, promoting the principles of governance, establishing transparency and efficiency in government leasing of real estate, as well as unifying the supervisory body represented in the Authority.
The new system and its executive regulations replace the ”State Leasing and Evacuation of Real Estate" system and its executive regulations, which are meant to regulate the state's leasing process through government agencies according to their needs, as well as rationalizing the financial costs of leasing, in addition to developing the utilization of the leased property by government agencies. The State Real Estate Leasing System targets ministries, public bodies and institutions and the like, as well as the owner of the property or those who have the right to lease it legally, and it will bring many positive effects on the investment sector in the real estate market, increasing the contribution of the real estate sector to the Kingdom's GDP.
The System of State Leasing of Real Estate. <She pointed out that the law and regulation allowed more flexibility in determining the duration of lease contracts, which can be up to 5 years renewable, up to 25 years subject to the approval of the Authority, and up to 50 years for properties built on government lands that the Authority contracts with investors for investment projects, pointing out that the law also allows the lease of one property for a number of government agencies, and obliges government tenants to develop an annual plan in coordination with the Authority for its lease of the property before the beginning of each fiscal year, and publish it on its website or any other means.
They also authorized <a style="color: #993300;" href="https://amlak.net. for the government entity to finalize the contract by the lease-to-own method after obtaining the approval of both the Authority and the Ministry of Finance, noting that the articles of the system define the mechanism for government entities to request to lease a property, the conditions of the lease, the controls of its contract and its extension mechanism, in addition to the cases of compensation to the lessor when the property is vacated, how to account for damages if any, the mechanism for handing over the property after the end of the contract, and how to address any dispute that arises between the lessor and the government entity renting it.
