The Board of Directors of the General Authority for State Real Estate , chaired by His Excellency the Minister of Finance, Mr. Mohammed bin Abdullah Al-Jadaan, has approved regulations governing the allocation of state-owned real estate for the benefit of the nonprofit sector.
This comes in implementation of Cabinet Decision No. 946 dated 06/11/1445 AH, which stipulates that “the General Authority for State Real Estate allocate state-owned real estate for the benefit of the non-profit sector in accordance with regulations approved by the Authority’s Board of Directors in coordination with the Ministry of Human Resources and Social Development and the National Center for the Development of the Non-Profit Sector.”

The Authority stated that the regulations, which were prepared in collaboration with the Ministry of Human Resources and Social Development as well as the National Center for the Development of the Non-Profit Sector, aim to regulate matters related to the allocation state-owned real estate to non-profit entities, without prejudice to relevant regulations, orders, decisions, and instructions.

It also emphasized that the adoption of regulations for the allocation of state-owned real estate to the non-profit sector is part of the objectives launched by Saudi Vision 2030, which include strengthening cooperation between non-profit sector institutions and government agencies; in order to enhance the third sector’s capacity to increase the proportion of development projects with a social impact by 2030.

The Authority revealed that the new regulations stipulate that allocation for the purpose of providing and operating headquarters must be limited to the needs of the non-profit entity, and that the allocated area must not exceed 2,500 square meters, The entity is also permitted to use 30% of the property for financial sustainability purposes.

The Authority added: “Regarding allocations for non-profit development projects, the regulations require the existence of a registered non-profit entity and a donor, while also allowing the use of 30% of the property for financial sustainability purposes.”

It noted that the construction of buildings on these allocated properties must be carried out in accordance with the standards and specifications set by the General Authority for State Properties, explaining the mechanism for submitting allocation requests, whereby the Non-Profit Sector Development Center or the “Sakha” submits its recommendations to the Authority after verifying that the application meets the requirements.

The regulations urged nonprofit entities to make optimal use of the property, stipulating that if the need for the property ceases or the nonprofit entity faces financial difficulties—God forbid —the property will be reallocated to another project or reclaimed by the Authority for use in other projects, in coordination between the National Center for Nonprofit Sector Development or the “Sakha” program and the Authority.

The regulations also emphasize monitoring the status of allocated properties, as the National Center for Nonprofit Sector Development or the “Sakha” program prepares an annual report on the nature of the utilization of these properties.