As part of efforts to enhance transparency and regulate the acquisition of real estate outside the Kingdom, the General Authority for State Real Estate has announced the release of draft regulations governing government entities" ownership of overseas real estate on the Isti'la platform. The draft regulations aim to ensure the effective and institutional management of these properties, while inviting feedback and suggestions from the public and organizations until January 13, 2025.
Draft Details
The draft regulations aim to regulate the process by which government agencies acquire real estate outside the Kingdom and to establish a clear framework for managing such properties to maximize their utility. The proposed regulations require government agencies to prepare an annual plan for their overseas real estate needs in coordination with the Authority and the Ministry of Foreign Affairs, which includes:
Identification of the target country, region, or city.
A description of the type of property and its specifications.
A clarification of the purpose of the property.
Information on the property’s users, including their numbers and job levels.
Any additional data requested by the Authority.
The regulations confirm that the preparation of the plan does not entail any financial or legal obligations on the part of the Authority or the Ministry of Foreign Affairs.
Approval Mechanism and Implementation of Acquisition
After obtaining preliminary approval from the Authority for the acquisition request, the government entity must submit at least three proposals from marketing companies or real estate consulting firms within 60 days. As an exception, a single proposal accompanied by justification is permitted. For its part, the Authority may submit additional or alternative proposals to ensure the best available options are selected.
The Authority issues its decision on the proposals within 15 business days, with the possibility of extending this period by a similar duration if necessary.
Overseas Real Estate Management
Regulations emphasize the requirement for government agencies to submit periodic reports on the status of real estate they own outside the Kingdom, and to facilitate visits by Authority staff to inspect the properties and verify their condition and necessity.
If a property is no longer needed, the government agency must notify the Authority immediately, whereupon the Authority will examine the possibility of selling, reallocating, or investing in it. These options are considered by the Overseas Real Estate Committee.
Disposition of Real Estate and Proceeds
The regulations stipulate that proceeds from the sale of overseas real estate shall be deposited into a special account at the Ministry of Finance and allocated to meet the needs of government agencies for their overseas real estate, in accordance with the recommendations of the Overseas Real Estate Committee.
Call for Participation
The General Authority for State Real Estate invites all relevant entities and citizens to review the draft and submit their feedback via a survey platform before the specified deadline. This participation aims to ensure the formulation of effective regulations that support the Kingdom’s vision of improving real estate asset management and strengthening its economic role.
