The the General Authority for State Real Estate has begun operations the State Real Estate Leasing System and its implementing regulations, which entered into force as of yesterday, Thursday, following the issuance of Royal Decree No. M/136 dated 1443/12/28 AH approving the system and 180 days having elapsed since its publication in Umm al-Qura Newspaper, as well as the approval of its implementing regulations by the Authority’s Board of Directors and their publication.
The new regulation and its implementing regulations will replace the “State Real Estate Leasing and Eviction” regulation and its implementing regulations. They will apply to ministries, public agencies, public institutions, and similar entities, as well as to property owners or those who legally hold the right to lease the property.
The regulation and its implementing regulations aim to regulate the process by which the government leases real estate through government agencies in accordance with their needs, as well as to rationalize the financial costs of leasing, in addition to optimizing the use of real estate leased by government agencies, strengthening governance principles, and establishing transparency and efficiency in government real estate leasing operations, as well as unifying the supervisory authority for the leasing process, which is the Authority.
It noted that the State Real Estate Leasing System and its implementing regulations will have many positive effects on the investment sector in the real estate market, thereby increasing the real estate sector’s contribution to the Kingdom’s gross domestic product.
The the law and its implementing regulations flexibility in setting lease terms of up to 5 years, renewable, and up to 25 years subject to the Authority’s approval, It also permits terms of up to 50 years for properties built on government-owned land where the Authority contracts with investors for development projects, in addition to allowing a single property to be leased to multiple government entities, It also permits the conclusion of lease-to-own agreements upon obtaining approval from both the Authority and the Ministry of Finance.
General Authority for State Real Estate
