The General Authority for State Property announced a set of regulations governing government entities" ownership of real estate outside the Kingdom, with the aim of enhancing transparency and ensuring the optimal use of such properties in line with actual needs and relevant legislation.
Ownership regulations and financial approval conditions
The Authority emphasized the necessity for government agencies to obtain its approval prior to acquiring any real estate outside the Kingdom, while ensuring that there is no unused property that meets their needs or complies with technical and security standards. It also stressed the importance of:
Availability of financial authorization: The government entity must have the necessary financial authorization to acquire and utilize the property when needed.
Compliance with standards: The property must comply with the technical specifications approved by the Authority and be priced in line with prevailing market rates in the host country.
Ownership requirements in the host country
The Authority has established a set of conditions to ensure the legality and validity of the properties targeted for acquisition, including:
Approved legal documents: Obtaining an official title deed that is legally binding and meets the host country’s requirements.
Structural soundness: The property must be free of structural defects according to certified reports and must not require renovations or repairs, except in exceptional cases.
Compliance with local laws: The property must comply with the regulations and laws in force in the host country and be free of violations or outstanding liabilities.
The Authority also emphasized that ownership of properties belonging to any of its employees, government officials, or their relatives up to the third degree, or to persons prohibited from dealing with under local and international regulations, is not permitted.
Utilization and Monitoring of Property Use
The Authority has required government agencies not to use the real estate allocated to them for purposes other than those specified, and to:
Reporting unused properties: Notifying the Authority when the property is no longer needed and submitting a comprehensive report on its condition.
Adherence to an operational plan: Submission of an approved plan for the use of the property; if no plan exists, the Authority has the right to dispose of the property or allocate it to another government agency.
Assume operational responsibility: The government entity to which the property is allocated shall assume responsibility for its operation and maintenance, in addition to paying the relevant taxes and fees.
Joint Property Management
The regulations permit the allocation of a single property to multiple government entities in coordination with the operating entity, provided that each entity bears the direct and indirect costs of its use of the property. It also requires government agencies to maintain the allocated properties and provide the necessary security to ensure their safety.
These regulations aim to achieve sustainability and efficiency in the management of state-owned properties outside the Kingdom, while emphasizing the importance of adhering to transparency and local and international laws to ensure the optimal use of these properties.
