{"id":62640,"date":"2024-01-29T10:39:13","date_gmt":"2024-01-29T07:39:13","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=62640"},"modified":"2025-11-26T20:49:54","modified_gmt":"2025-11-26T20:49:54","slug":"%d8%a8%d8%a7%d9%84%d8%aa%d9%81%d8%a7%d8%b5%d9%8a%d9%84-%d9%86%d8%b5-%d9%84%d8%a7%d8%a6%d8%ad%d8%a9-%d8%a7%d9%84%d8%aa%d8%b5%d8%b1%d9%81%d8%a7%d8%aa-%d9%81%d9%8a-%d8%b9%d9%82%d8%a7%d8%b1%d8%a7%d8%aa","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/62640\/","title":{"rendered":"In detail... Text of the Regulations on the Sale and Leasing of State Real Estate"},"content":{"rendered":"

Published in the Official Gazette \u2013 Umm al-Qura \u2014 in its latest issue published last Friday, details of Board of Directors Resolution (Board of Directors of the General Authority for State Real Estate) No. (Q\/1\/18\/2023), dated 10 Rabi\u2019 al-Awwal 1445 AH (third version), regarding Regulations Governing the Disposal of State-Owned Real Estate<\/a>.<\/strong><\/span><\/p>\n

According to the *Umm al-Qura* newspaper, the regulations governing the disposal of state-owned real estate consist of 7 chapters comprising 74 articles.<\/p>\n

According to the regulations, state-owned real estate may not be leased without the Council\u2019s approval if the lease term exceeds (10) years or if there are special considerations regarding the property.<\/p>\n

The Regulations on the Disposal of State Real Estate also specify the term of state real estate investment contracts as follows:<\/p>\n

1- A maximum of (15) years for state-owned real estate where the investment contract provides for the construction of permanent structures on the property or the performance of comprehensive renovation work by the investor.<\/p>\n

2- A maximum of (25) years for land for which the investment contract provides for the construction of permanent structures by the investor for investment projects; such projects shall be specified by a decision of the Council.<\/p>\n

3. From 25 years to a maximum of 50 years for major investment projects; such projects shall be determined by a decision of the Council.<\/p>\n

\u00a0Text of the Regulations Governing the Disposal of State Real Estate:<\/strong><\/span><\/h4>\n

Chapter 1:<\/p>\n

General Provisions<\/p>\n

Article I:<\/p>\n

The following words and phrases\u2014wherever they appear in these regulations\u2014shall have the meanings set forth opposite each of them:<\/p>\n

Authority: General Authority for State Real Estate.<\/p>\n

Regulation: Regulation on the Disposal of State-Owned Real Estate.<\/p>\n

Council: The Board of Directors of the Authority.<\/p>\n

Governor: Governor of the Authority.<\/p>\n

State Property: All land within the Kingdom that is not under private ownership\u2014as evidenced by a title deed\u2014and all land and buildings owned by the State, both within and outside the Kingdom.<\/p>\n

Investor: A natural or legal person who is entitled to engage in commercial and investment activities in accordance with the relevant laws and regulations.<\/p>\n

Allocation: Placing any state-owned property at the disposal of a government agency or other entity for the purpose of providing a public service or benefit.<\/p>\n

Investment: Utilizing and managing state-owned real estate with the aim of preserving and developing it, meeting government needs and public projects, and leveraging it to generate financial returns and increase state revenues.<\/p>\n

Public auction: A method designed to achieve the highest price by inviting the largest number of investors to submit bids for an investment opportunity.<\/p>\n

Open Public Bidding: A method designed to achieve the highest price by submitting the highest bid in an open forum following its announcement in accordance with the provisions of these regulations.<\/p>\n

Exchange: The replacement of real property owned by a third party with real property owned by the state.<\/p>\n

Build-Operate-Transfer (BOT) Contract: A contract that grants the investor (or a company jointly owned by the Authority and the investor) the right to develop state-owned property and the right to operate the developed facilities and structures for a specified period, with the investor\u2019s obligation to return the property and the developed facilities and structures to the Authority upon expiration of the term specified in the contract.<\/p>\n

Excess Expropriation Land: The excess area of state-owned real estate resulting from expropriation projects carried out in the public interest.<\/p>\n

Rezoning Surplus: State-owned land resulting from the rezoning of existing residential areas.<\/p>\n

Planning Surplus: State-owned land resulting from the reorganization of land-use plans.<\/p>\n

Excess Grant Land: State-owned land allocated to the grantee that exceeds the area specified in the grant order.<\/p>\n

Annual Rent: The annual rent specified in a lease agreement for state-owned real estate or its investment.<\/p>\n

Article II:<\/p>\n

The regulations aim to achieve the following:<\/p>\n

1. Development of state-owned real estate.<\/p>\n

2. To ensure the optimal utilization of state-owned real estate in a manner that achieves the desired objectives.<\/p>\n

3. Regulating procedures related to the disposal of State real estate<\/a><\/strong> Including the bidding and awarding processes, in a manner that ensures transparency and objectivity.<\/p>\n

Article III:<\/p>\n

The provisions of these regulations apply to all state-owned real estate, except for property that laws, regulations, and orders specify as being allocated to government agencies or falling under their supervision.<\/p>\n

Article IV:<\/p>\n

The Authority may, within the limits of its jurisdiction and in accordance with the provisions of the regulations, dispose of any state-owned real estate in any of the following ways:<\/p>\n

1. Allocation.<\/p>\n

2. Leasing.<\/p>\n

3. Investment.<\/p>\n

4. Sale or barter.<\/p>\n

Article V:<\/p>\n

Except in the case of allocation, state-owned real estate shall be disposed of for the best financial return that can be obtained after the necessary appraisals have been conducted.<\/p>\n

Chapter 2:<\/p>\n

Personalization<\/p>\n

Article VI:<\/p>\n

State-owned real estate shall be allocated to government agencies to the extent of their needs, in accordance with regulations adopted by the Council. The Authority may allocate state-owned real estate to non-government entities upon approval by the Prime Minister.<\/p>\n

Article VII:<\/p>\n

State-owned property may be used only for the purpose for which it was designated and only by the entity to which it was allocated.<\/p>\n

Article VIII:<\/p>\n

1. The entity to which state property has been allocated must return it to the Authority when it no longer needs it.<\/p>\n

2. If state-owned property that has been allocated remains unused, the Authority shall reclaim it after notifying the entity to which the property was allocated.<\/p>\n

3. The Authority shall revoke the allocation when necessary, in accordance with regulations adopted by the Board.<\/p>\n

Chapter 3:<\/p>\n

Leasing<\/p>\n

Article IX:<\/p>\n

1. The Authority may lease state-owned real estate for a term not exceeding (ten) years; the term of the lease agreement shall be determined at the Authority\u2019s discretion.<\/p>\n

2. Notwithstanding the provisions of paragraph (1) of this article, the contract may include a provision for its extension after the end of its initial term for a period not exceeding (five) years, in which case it may provide for an increase in rent of not less than (5%) of the rent for the original term if the extension is for one year or less, and not less than (10%) of the rent for the original term if the extension is for more than one year.<\/p>\n

3. Subject to the governor\u2019s approval, the Authority may extend the lease agreement in cases where an extension is necessary for the lessee, until the re-tendering and award procedures are completed, provided that the total duration of the extension does not exceed one year.<\/p>\n

Article X:<\/p>\n

1. The handover of the leased state-owned property to the lessee shall be documented in a report detailing the condition of the property and its contents; the report shall be signed by the Authority and the lessee, and an approved survey of the property shall be attached to the report.<\/p>\n

2. Upon vacating the leased state property, it shall be handed over to the Authority based on an inspection report documenting its condition and any damage caused by misuse; the report shall be signed by the Authority and the tenant. If the tenant objects to the contents of the report, he or she may write a reasoned objection in the report and sign it.<\/p>\n

Article XI:<\/p>\n

By decision of the governor, a three-member committee shall be formed to assess the damage to the leased state property, determine the amount of compensation, and prepare a detailed report thereon, within a period not exceeding (sixty) days from the date of vacating the property, The committee may engage whomever it deems necessary to carry out its work. The Authority shall notify the tenant of the results of this assessment and the amount of compensation within (fifteen) days from the date the report is prepared, at the address registered with the Authority, accompanied by a copy of the report, The tenant must pay the compensation within (ninety) days from the date of notification.<\/p>\n

Article XII:<\/p>\n

The Authority may lease state-owned real estate directly following an appraisal conducted by the Appraisal Committee provided for in Article (53) of the Regulations, and after the property has been advertised for lease in a public auction on two occasions\u2014in accordance with the provisions of the Regulations\u2014 and provided that no investor has submitted a bid on either occasion. The direct lease must take place within two months of the date set for the submission of lease bids for the second time.<\/p>\n

Article XIII:<\/p>\n

The Authority is authorized to lease certain state-owned properties for temporary purposes, as follows:<\/p>\n

\u200c1. Rental on a daily or monthly basis for the purpose of hosting an event or organizing a gathering.<\/p>\n

2. Leases to project contractors shall not exceed three years, subject to extension based on the project\u2019s needs.<\/p>\n

3. Real estate for which deeds have been revoked may be leased to the person in possession of the property for a period not exceeding one year; this period may be extended for one or more additional periods, provided that the total duration does not exceed five years. This shall remain in effect until the Council issues a decision on the final disposition of such properties.<\/p>\n

Article XIV:<\/p>\n

The Authority may claim from any person who uses state property without legal authorization the market rent, as assessed by the Appraisal Committee provided for in Article (53) of the Regulations; this applies for the duration of the use of the property or its continued possession, without prejudice to any penalties or measures imposed pursuant to the relevant laws and regulations.<\/p>\n

Article XV:<\/p>\n

In the following cases, state-owned real estate may not be leased without the Council\u2019s approval:<\/p>\n

1- If the lease term exceeds (ten) years.<\/p>\n

2. If there are special considerations regarding the property.<\/p>\n

Article XVI:<\/p>\n

The Authority prepares standardized forms for state property lease agreements that outline the rights and obligations of the contracting parties.<\/p>\n

Chapter 4:<\/p>\n

Investment<\/p>\n

Article XVII:<\/p>\n

1. In order to achieve its objectives, the Authority may\u2014either on its own or through a company it establishes\u2014enter into partnerships with third parties, subject to the Board\u2019s approval. Examples of such partnerships include the following:<\/p>\n

\u200cA. Partnership agreements (or company formation agreements) with an investor, in which the Authority\u2019s contribution consists of state-owned real estate, in exchange for a financial contribution from the investor.<\/p>\n

b. Establishing a company with capital contributions from the Authority and third parties, and granting this company the right to invest in or develop state-owned real estate.<\/p>\n

c. Contributing to the capital of an existing company in exchange for a share of the profits from the investment or development, where the state-owned property constitutes the value of the contribution made by the Authority.<\/p>\n

\u200cD. Investing state-owned real estate through investment funds.<\/p>\n

2. The Authority may enter into contracts for the development of state-owned real estate based on the build-operate-transfer (BOT) contract model.<\/p>\n

Article XVIII:<\/p>\n

1. The Authority invests state-owned real estate through public auctions by evaluating bids in an appropriate manner, including the following methods:<\/p>\n

A. A share of the project\u2019s revenue, with bidding based on the highest share of revenue to which the Authority is entitled.<\/p>\n

b. Competition for the highest annual return over a specified period.<\/p>\n

c. Competition based on both the investment time frame and the highest return on investment.<\/p>\n

\u200cD. A share of the project\u2019s revenue, with an annual minimum set for the Authority; bidding shall be for the highest share of revenue, provided it is not less than the minimum.<\/p>\n

\u200cE. Competition to provide the largest area of built units to the Authority, in exchange for the implementing entity\u2019s right to use the remaining portion of state-owned real estate to construct units on it for its own benefit, in accordance with the terms specified in Article (20) of the regulations.<\/p>\n

2. The method for evaluating bids shall be determined in accordance with the guidelines adopted by the Council, provided that this is specified in the terms of the public tender when it is announced.<\/p>\n

Article XIX:<\/p>\n

If the disposal of state-owned real estate for investment purposes involves the establishment of a project for the benefit of the state, the Authority may grant the investor an interest-free period not exceeding (10%) of the contract term for preparation or construction; if the investor fails to complete the preparation or construction of the project, the investor must pay the market rent for that period. The duration of the preparation or construction shall be determined in accordance with the circumstances and nature of the project and shall be explicitly stipulated in the bidding specifications.<\/p>\n

Article XX:<\/p>\n

The term of state real estate investment contracts is determined as follows:<\/p>\n

1- A maximum of (fifteen) years for state-owned real estate where the investment contract includes the construction of permanent structures on the property or the performance of comprehensive renovation work by the investor.<\/p>\n

2- A maximum of (twenty-five) years for land for which the investment contract provides for the construction of permanent structures by the investor for investment projects; such projects shall be specified by a decision of the Council.<\/p>\n

3. From (twenty-five) years to a maximum of (fifty) years for major investment projects; such projects shall be determined by a decision of the Council.<\/p>\n

Article XXI:<\/p>\n

Investment contracts entered into in accordance with these regulations may not be extended or renewed, except in the following cases:<\/p>\n

1. Real estate designated for public use or for service activities, which is exempt from bidding, whose investment contracts are renewed or extended once for a term equal to the original contract term, following a reassessment of the investment value at each extension by the Investment Committee specified in Article (56) of the Regulations.<\/p>\n

\u200c2. Land for which the investment contract provides for the construction of permanent structures by the investor, and whose investment contracts are extended for a period or periods not exceeding a total of (ten) years; provided that the value of the investment is reassessed upon each extension by the Investment Committee specified in Article (56) of the Regulations.<\/p>\n

\u200c3. Cases in which the investor\u2019s contract must be extended until the re-tendering and award process is completed, provided that the extension period in such cases does not exceed one year.<\/p>\n

\u200c4. Investment contracts whose renewal is subject to conditions requiring the addition of new investments equal to or greater than the value of the original investment; such contracts may be renewed once for a period not exceeding the original term, subject to the following conditions:<\/p>\n

A. The Investment Committee shall assess the value of existing assets as property of the state.<\/p>\n

(b) The Investment Committee shall determine an independent investment value for the assets to be added to the property, provided that ownership of such assets shall revert to the State upon expiration of the renewal period.<\/p>\n

Article XXII:<\/p>\n

The Authority may enter into agreements with investors whose investment contracts remain in effect to increase the investment amount in their projects in exchange for extending the term of the contracts, provided that the value of the agreed-upon additional investment is equal to or greater than the value of the original investment, provided that the total contract term does not exceed fifty (50) years from the effective date of the agreement, that the value of the investment is reassessed by the Investment Committee, and that the value of existing assets at the time of the agreement is assessed on the basis that they are owned by the State.<\/p>\n

Article XXIII:<\/p>\n

The following provisions shall be observed in state real estate investment contracts:<\/p>\n

1. The Authority\u2019s approval of the consulting firm appointed by the investor to supervise and verify that the project is being implemented in accordance with the agreed-upon specifications, plans, and conditions; the Authority reserves the right to monitor the progress of work during the project\u2019s implementation, following the issuance of construction permits.<\/p>\n

\u200c2. The investor must obtain the necessary permits from the relevant authorities to operate the project.<\/p>\n

Article XXIV:<\/p>\n

The Authority requires an increase in the return on investment every (five) years, and the percentage is specified in the bidding documents and the investment contract.<\/p>\n

Article XXV:<\/p>\n

The Authority has the right to monitor and inspect the project covered by the partnership to ensure that the investor complies with the terms of implementation as agreed upon with the Authority.<\/p>\n

Chapter 5:<\/p>\n

Sale<\/p>\n

Article XXVI:<\/p>\n

State-owned real estate may be disposed of by sale\u2014subject to the approval of the Prime Minister\u2014if one or more of the following conditions are met:<\/p>\n

\u200c1. The purpose for retaining the property must have ceased to exist, and there must be no other purpose.<\/p>\n

\u200c2. If the property is surrounded on all sides by land owned by a single owner and has public access, provided that it is sold to that owner.<\/p>\n

\u200c3. The sale must serve a necessary public interest, such as social or economic development.<\/p>\n

4. The property is not suitable for investment, or is difficult to invest in or manage, due to its location or characteristics.<\/p>\n

5. Expropriation surcharges, zoning surcharges, planning surcharges, and grant surcharges.<\/p>\n

6. Properties that complement neighboring properties.<\/p>\n

7. Common property.<\/p>\n

8. Real estate for which title deeds have been canceled after the value of the improvements and the buildings erected thereon has been deducted in favor of the developer.<\/p>\n

Article XXVII:<\/p>\n

Subject to the provisions of Article (25) of the Regulations, the sale of surplus land resulting from expropriation, urban development, planning, and land grants shall be conducted in accordance with the following rules:<\/p>\n

1. The value of the sale shall be assessed by the appraisal committee provided for in Article (53) of the regulations.<\/p>\n

\u200c2. Surplus property resulting from expropriation shall be sold in accordance with the provisions of the Law on the Expropriation of Real Property for Public Benefit and the Temporary Seizure of Real Property, its implementing regulations, and the instructions issued pursuant thereto.<\/p>\n

\u200c3. Any land surplus resulting from zoning or planning that building codes do not permit to be used for the construction of standalone buildings, or that the Authority cannot utilize, shall be sold to the owner of the adjacent property at the market price at the time of sale.<\/p>\n

4. Surplus land resulting from zoning and planning regulations\u2014on which building codes permit the construction of standalone buildings\u2014may be sold or developed through a public auction, unless such development or sale to a third party would cause harm to the owner of the adjacent property; In such a case, they shall be sold to the owner of the adjacent property at the market price at the time of sale, provided that the harm is proven by a technical committee formed by the governor.<\/p>\n

5. Zoning and planning surpluses that benefit multiple adjacent property owners and that the Authority is unable to invest in shall be sold through an auction restricted to those owners, following the amendment of the zoning lines.<\/p>\n

\u200c6. Surplus land granted to persons to whom land has been allocated in excess of the area specified in the grant order shall be sold, and the sale price shall be based on the market price at the time of sale.<\/p>\n

Article XXVIII:<\/p>\n

If the sale of state-owned real estate is on a deferred-payment basis, the Authority must require the buyer to provide adequate guarantees, including that title shall not be transferred to the buyer until the purchase price has been paid in full, or that the property being sold is mortgaged in favor of the Authority, or other such guarantees.<\/p>\n

Article XXIX:<\/p>\n

1. The transfer of the sold state-owned property shall be conducted in accordance with the procedure set forth in Article (10) of the regulations.<\/p>\n

2. Delivery may take place by mutual agreement of the contracting parties if the property was in the buyer\u2019s possession prior to the sale, or if the authority retained possession of the property after the sale for a reason other than ownership.<\/p>\n

Article XXX:<\/p>\n

The Authority\u2014subject to the approval of the Prime Minister\u2014may exchange state-owned property for property owned by a third party.<\/p>\n

Article XXXI:<\/p>\n

The exchange of state-owned real estate shall be conducted in accordance with the following rules:<\/p>\n

1. The value of the property being exchanged and the property in exchange shall be assessed in accordance with the Law on Expropriation of Real Property for Public Benefit and Temporary Seizure of Real Property, its implementing regulations, and the instructions issued pursuant thereto.<\/p>\n

2. The purpose of the exchange must be to serve the public interest.<\/p>\n

3. An exchange will be made with privately owned real estate if the required property is not available from any government entity and if there are no financial appropriations available for expropriation at the time the Authority needs the property.<\/p>\n

Chapter 6:<\/p>\n

Bidding and Award Procedures<\/p>\n

Article XXXII:<\/p>\n

1. Dispositions of state-owned real estate shall be subject to open competition, except as otherwise provided in the regulations.<\/p>\n

2. All investors wishing to do business with the Authority who meet the eligibility requirements shall be afforded equal opportunities and treated equally.<\/p>\n

3. The public bidding process is governed by the principles of openness, transparency, and equal opportunity.<\/p>\n

Article XXXIII:<\/p>\n

1. Neither members of the Board nor employees of the Authority may enter into contracts with it regarding any of the acts specified in the regulations.<\/p>\n

2. Any person with a conflict of interest involving the Authority must disclose that conflict in connection with the proposed transaction, and the Board shall decide whether or not to approve the transaction.<\/p>\n

Article XXXIV:<\/p>\n

Prior to announcing the public tender, the Authority prepares the documents, terms, and specifications for leasing, investment, or sale, ensuring that they contain all information related to the tender, such as the general terms of the contract, the quantities and types of work, equipment, and construction, to be carried out at the site, and the duration of the lease or investment.<\/p>\n

Article XXXV:<\/p>\n

1. The Authority shall announce the proposed transaction through appropriate means it designates, including electronic means, in addition to posting the announcement on the Authority\u2019s website; the announcement must include the type of property, its area, its specifications, and the nature of the transaction.<\/p>\n

2. The Authority invites specialists in the relevant field to submit bids if the investment project is a major one or involves specialized technical and engineering expertise.<\/p>\n

3. The Authority provides electronic copies of the bidding documents on its website in addition to the paper copies.<\/p>\n

4. The Council shall determine the costs of bidding documents, which shall be graded according to the type and value of the transaction.<\/p>\n

Article XXXVI:<\/p>\n

1. Bids for the proposed transaction must be submitted to the Authority\u2019s headquarters in sealed envelopes or electronically encrypted via the Authority\u2019s website or any other electronic platform designated by the Authority. The bidder must fulfill all the conditions set forth in the public tender.<\/p>\n

2. Bids must be submitted by the deadline for acceptance; otherwise, they will be deemed invalid.<\/p>\n

3. Prior to awarding the contract, the Authority shall announce the names of the investors who submitted bids and the value of each bid.<\/p>\n

Article XXXVII:<\/p>\n

1. Bids submitted in the tender shall remain valid for a period of (ninety) days beginning on the date set for the opening of bids; if a bidder withdraws its bid during this period, its initial bid bond shall not be returned.<\/p>\n

2. The Authority may extend the validity period of the bids for an additional (ninety) days; investors who wish to continue bidding must extend the validity period of their initial bid bond.<\/p>\n

Article XXXVIII:<\/p>\n

1. A preliminary bid bond, in an amount specified in the bid documents and ranging from (1%) to (2%) of the bid value, must be submitted with the bid; any bid not accompanied by such a bond will be rejected.<\/p>\n

2. Preliminary bid bonds shall be returned to the bidders whose bids were not accepted within (fourteen) days of the date of the award decision.<\/p>\n

3. Notwithstanding the provisions of paragraphs (1) and (2) of this article, an initial security deposit is not required in the following cases:<\/p>\n

\u200cA. Direct Agreement.<\/p>\n

b. Contracts and partnerships entered into by the Authority with government agencies.<\/p>\n

c. Local small and medium-sized enterprises; any enterprise that withdraws from the bidding process is barred from participating in future bids for a period of two years.<\/p>\n

Article 39:<\/p>\n

If only one bid is submitted, or if several bids are submitted and it turns out that all but one do not comply with the bidding documents, that bid may not be accepted unless its prices are comparable to prevailing market prices and after obtaining the governor\u2019s approval.<\/p>\n

Article 40:<\/p>\n

1- The successful bidder must submit a final guarantee equal to (25%) of the annual bid value within (fifteen) business days from the date of notification of the award, The Authority reserves the right to extend this period for a similar duration; if the successful bidder fails to meet this deadline, the initial bid bond will not be returned, and negotiations will proceed with the next highest bidder. The bid bond percentage may be increased with the Governor\u2019s approval.<\/p>\n

2. A final guarantee is not required for contracts and partnerships entered into by the Authority with any of the following entities:<\/p>\n

A. Government agencies.<\/p>\n

b. Companies in which the state owns more than (51%) of the capital.<\/p>\n

Article 41:<\/p>\n

Guarantees shall be accepted if they are in one of the following forms:<\/p>\n

\u200c1. A bank guarantee from a local bank.<\/p>\n

\u200c2. A bank guarantee from a bank outside the Kingdom, issued through a local bank.<\/p>\n

Article 42:<\/p>\n

1. Investment projects shall be put out for public bidding in one of the following two ways:<\/p>\n

A. Announcement of a public tender, opening the opportunity for all investors to submit their bids in accordance with the approved terms and specifications for the project.<\/p>\n

(b) Announcing the intention to pre-qualify a number of investors based on technical or financial requirements, after which qualified investors shall be invited to submit their bids to compete for the project in accordance with paragraph (2) of this article.<\/p>\n

2. The following requirements must be met when the project is put out to bid through a prequalification process:<\/p>\n

\u200cA. The number of candidates invited to participate shall not be less than (five); the Council may reduce this number.<\/p>\n

b. The project must be specialized or require high-tech investment.<\/p>\n

c. The investment term must not be less than (twenty-five) years.<\/p>\n

D. The sole bid submitted in the bidding process following prequalification shall not be accepted.<\/p>\n

3. If all the conditions set forth in paragraph (2) of this article are not met, the bidding process shall be reopened.<\/p>\n

Article 43:<\/p>\n

The following shall be observed in the public auction:<\/p>\n

\u200c1- Provide complete and standardized information about the property being offered in the public auction, enable investors to access this information simultaneously, and set a single deadline for submitting bids.<\/p>\n

\u200c2. The date and location for opening the bids must be specified in the tender announcement, and the period between the date of the announcement and the date of opening the bids must not be less than (thirty) days.<\/p>\n

Article 44:<\/p>\n

The bidding process shall be canceled by decision of the governor in the following cases:<\/p>\n

1. If the bidding documents contain material errors that cannot be corrected.<\/p>\n

2. If a measure is taken that violates the provisions of the regulations, it cannot be corrected.<\/p>\n

\u200c3- If there are clear indications of fraud or any corrupt practices, or collusion among investors or parties related to the bidding process, such that the bid cannot be awarded in accordance with the provisions of the regulations.<\/p>\n

\u200c4. If the Bid Evaluation Committee determines that all submitted bids are unsuitable.<\/p>\n

5. If all bids fail to comply with the bidding documents.<\/p>\n

6. If the public interest so requires.<\/p>\n

Article 45:<\/p>\n

In the event that the bidding process is canceled, bidders will be refunded the cost of the bidding documents and the initial bid bonds within (fourteen) days from the date the cancellation decision is issued.<\/p>\n

Article 46:<\/p>\n

1. The term of the contract shall be calculated from the date the investor takes possession of the property from the Authority, as evidenced by a handover report signed by both parties, no later than (thirty) days from the date the contract is signed.<\/p>\n

2. If the investor fails to sign the site handover report, the Authority shall send a written notice to the investor at the address listed in the offer, and the term of the contract shall be calculated from the date of such notice.<\/p>\n

Article 47:<\/p>\n

Taking market value into account, the following are excluded from the public auction:<\/p>\n

\u200c1. Contracts entered into with government entities.<\/p>\n

2. Contracts entered into with companies in which the state owns more than (51%).<\/p>\n

3. Contracts entered into with public concession companies.<\/p>\n

4. Lease agreements for state-owned real estate for temporary purposes, as set forth in Article (13) of the regulations.<\/p>\n

5. Contracts entered into for the leasing of state-owned real estate to address an existing real estate investment, for a term not exceeding the duration of the contract.<\/p>\n

6. Amending or investing in leases for state-owned real estate through addenda in a manner that serves the public interest; subject to the Council\u2019s approval.<\/p>\n

7. Real estate sales contracts for properties whose deeds have been revoked and are still in the names of their former owners.<\/p>\n

8. Contracts for the sale or lease of real estate, including its occupants, if it is determined that the property is not a viable investment or is difficult to manage due to its location or characteristics; this is subject to the Council\u2019s approval.<\/p>\n

This is after the Valuation Committee estimates the rent in the case of a lease, and the Investment Committee estimates the rent and investment returns in the case of an investment.<\/p>\n

Article 48:<\/p>\n

If an investor, lessee, or buyer withdraws after the award, or fails to submit the final guarantee within the period specified in Article (40) of the regulations, their initial guarantee shall be forfeited, and negotiations shall be conducted with the bidders ranked next in order to reach the price at which the contract was awarded; if this price cannot be reached, the property shall be put up for auction again.<\/p>\n

Article 49:<\/p>\n

The final security deposit provided by the tenant or investor will not be released until the lease term has expired and the property has been handed over in accordance with the terms of the contract.<\/p>\n

Article 50:<\/p>\n

If the investment involves the construction of facilities that will become the property of the State upon the expiration of the contract, the following shall be observed in addition to the investment provisions referred to in the regulations:<\/p>\n

\u200c1. The Authority shall specify, in the bid documents, the specifications, drawings, and quantities of the work to be put out for investment.<\/p>\n

\u200c2. The Authority shall approve the detailed engineering designs and plans for the project prepared by the investor, and shall have the right to supervise the implementation, either in whole or in part.<\/p>\n

\u200c3. The investor shall be responsible for maintaining and repairing the project until its handover following the expiration of the investment contract.<\/p>\n

\u200c4. The Authority shall take possession of the entire project upon the expiration of the investment period, including facilities, buildings, fixtures, furnishings, and movable equipment and machinery; and the project must be free of any outstanding financial obligations, such as electricity and water bills, among others.<\/p>\n

Article 51:<\/h4>\n

1- Leasing or sale may be conducted through an open public auction, either at the property site, at the Authority\u2019s headquarters, or via electronic means. A committee shall be formed by a decision of the governor to conduct the auction, with no fewer than (three), one of whom must be a legally qualified member. The decision shall designate the committee chair from among the members, and each committee member shall have a reserve member to replace him or her in the event of absence.<\/p>\n

2. The Appraisal Committee shall assess the value of state-owned real estate designated for sale or the value of the rental compensation for such property prior to the open public auction and shall determine the minimum acceptable price for sale or lease; The auction shall be canceled by a decision of the Bid Review Committee provided for in Article (55) of the Regulations if the highest price reached during the auction is less than the minimum acceptable price for sale or lease.<\/p>\n

3. The committee shall prepare minutes documenting the open public bidding process and the highest bid reached during the auction, and shall submit its minutes to the Bid Review Committee; Preliminary guarantees may be accepted in the form of a bank check in the open public auction, and the award procedures shall be completed in accordance with the auction provisions set forth in the regulations.<\/p>\n

Article 52:<\/p>\n

If an offer is submitted to the Authority to invest in, lease, or purchase any state-owned real estate that has not been put up for auction, and the Authority\u2014after conducting an investigation and preparing an appraisal report\u2014that the investment, lease, or sale is appropriate, it shall announce the opening of a public bidding process and notify the applicant to submit their bid in accordance with the bidding terms. If no other investors submit bids, the award procedures shall be completed, subject to the governor\u2019s approval in accordance with the authorities granted to him by the Council.<\/p>\n

Article 53:<\/p>\n

1. The Appraisal Committee shall be formed by a decision of the governor and shall consist of three members, one of whom must hold a license from the Saudi Authority for Certified Appraisers; and the decision establishing the committee shall designate the chairperson from among the members, provided that each member of the committee has a reserve member who shall replace him or her in the event of absence.<\/p>\n

2. The committee\u2019s mission shall be as follows:<\/p>\n

\u200c\u200cA. Valuation of state-owned real estate designated for sale or determination of its rental value, provided that the valuation method approved by the Saudi Authority for Certified Appraisers is used; the valuation report must specify the method used in the valuation.<\/p>\n

\u200c\u200cB. Estimating the value of land acquisition surpluses, development surpluses, planning surpluses, and grant surpluses that are to be sold because they cannot be invested.<\/p>\n

3- The committee must carefully examine market prices, and the valuation criteria must be objective and appropriate for the transaction to be concluded.<\/p>\n

4. The committee may consult any experts or specialists outside its membership whom it deems appropriate to provide an opinion on any matter brought before it.<\/p>\n

Article 54:<\/p>\n

1. The Envelope-Opening Committee shall be formed by a decision of the governor consisting of (three) members of the Authority, one of whom must be a member with the required qualifications. The decision establishing the committee shall designate the chairperson from among its members, and each member of the committee shall have a substitute member who shall take his or her place in the event of absence.<\/p>\n

2. This committee shall open the envelopes at the announced time and place and announce the prices stated in the bids.<\/p>\n

Article 55:<\/p>\n

1. The Bid Review Committee shall be formed by a decision of the governor consisting of (three) members of the Authority, one of whom must be a member with the required qualifications. The decision establishing the committee shall designate the chairperson from among the members, and each member of the committee shall have a substitute member to replace him or her in the event of absence.<\/p>\n

2. This committee shall be responsible for reviewing bids in public tenders\u2014except for tenders submitted in connection with the investment operations specified in (Chapter Four) of the regulations\u2014at the announced time and place, negotiate with the highest bidders in the event of a tie, and recommend the award of the contract to the competent authority.<\/p>\n

Article 56:<\/p>\n

1. The Investment Committee shall be formed by a decision of the governor, consisting of (three) members from the Authority or any other entity; the decision establishing the committee shall designate the committee chair from among its members, provided that each member of the committee shall have a substitute member who shall take his or her place in the event of absence.<\/p>\n

2. This committee shall be responsible for the following:<\/p>\n

A. Analyze the bids submitted in the public auctions for the investment projects listed in (Chapter Four) of the regulations and submit a recommendation to the authorized official to award the contract to the bid deemed appropriate.<\/p>\n

b) Negotiate with the highest bidders in either of the following cases:<\/p>\n

First: If the highest bid is subject to a condition.<\/p>\n

Second: If there are multiple bids of equal value, the highest bid wins.<\/p>\n

c. Valuation of real estate investments exempt from public auction.<\/p>\n

D. Reassessment of the value of real estate investments for which the investor wishes to extend the contracts.<\/p>\n

Article 57:<\/span><\/h4>\n

1. The following shall be established by decision of the governor- a committee to review investor grievances, consisting of three members of the Authority, one of whom must be legally qualified. The decision establishing the committee shall designate the chairperson from among the members, and each member of the committee shall have a substitute member to replace him or her in the event of absence.<\/p>\n

2. This committee shall be responsible for reviewing investors\u2019 appeals against the award decision, or against any decision or action taken by the Authority prior to the award decision, with respect to any disposition of state-owned real estate.<\/p>\n

3. The committee shall decide on any grievances submitted to it and notify the parties concerned within (fifteen) days of the date of receipt; the committee may extend this deadline by a similar period of time, on one occasion only.<\/p>\n

4. The investor has the right to appeal the committee\u2019s decision before the Administrative Court within (sixty) days from the date of notification of the decision.<\/p>\n

Article 58:<\/span><\/h4>\n

The rules of procedure for the committees referred to in these regulations, as well as the remuneration of their members and secretariat, shall be issued by a decision of the governor\u2014in accordance with applicable regulations and procedures\u2014and the governor may form other committees if necessary.<\/p>\n

Article 59:<\/p>\n

The provisions of the Government Competitive Bidding and Procurement Law and its implementing regulations shall apply to matters not specifically addressed in this chapter.<\/p>\n

Chapter 7:<\/p>\n

Final provisions<\/p>\n

Article 60:<\/span><\/h4>\n

Contracts, their documents, and their annexes shall be in Arabic; another language may be used in addition to Arabic, provided that Arabic is the language of reference for the interpretation and execution of the contract, as well as for defining its specifications, drawings, and related correspondence.<\/p>\n

Article 61:<\/span><\/p>\n

If the contract is valid, it may not be terminated during its term by the unilateral decision of either party; however, the contract may be terminated by mutual consent and agreement between the parties, and the Authority may terminate the contract unilaterally in the event that the investor or lessee breaches its contractual obligations in a manner that warrants termination.<\/p>\n

Article 62:<\/p>\n

Contracts drawn up in accordance with the provisions of the regulation must include a clause requiring the investor to use and exploit the state-owned property for the purpose specified in the contract.<\/p>\n

Article 63:<\/p>\n

Ownership of all structures built by an investor or lessee on state-owned real estate shall vest in the state.<\/p>\n

Article 64:<\/span><\/p>\n

The Authority may contract with specialized consulting firms to market its real estate investments in order to obtain the best return on investment opportunities in exchange for a specified percentage of the return on investment for the first year; the Board shall establish the necessary regulations for this purpose.<\/p>\n

Article 65:<\/p>\n

The total value of the contract shall include all costs of its execution in accordance with its terms, including the amount of fees and taxes payable by the contractor; neither these costs nor the profits of contractors working with the Authority may be exempted.<\/p>\n

Article 66:<\/p>\n

The contractor may not assign the contract or any part thereof to another person without first obtaining the Authority\u2019s written consent.<\/p>\n

Article 67:<\/p>\n

1. The contractor may not subcontract to another party without obtaining written approval from the Authority.<\/p>\n

2. The contractor shall, in all cases, be jointly and severally liable with the subcontractor for the performance of the contract in accordance with its terms.<\/p>\n

Article 68:<\/p>\n

If the investor or tenant dies and his or her heirs do not wish to continue the contract, the contract shall be terminated and the security deposit provided by him or her shall be released after all rights and obligations arising from the contract have been settled.<\/p>\n

Article 69:<\/span><\/h4>\n

The parties may agree to settle any dispute or disagreement arising between them through amicable means; if amicable means prove impossible, they may resort to arbitration in accordance with the provisions of the Arbitration Regulations, subject to the following:<\/p>\n

1. Arbitration shall be limited to contracts whose value does not exceed (thirty) million riyals.<\/p>\n

2. The laws of the Kingdom of Saudi Arabia shall apply to the subject matter of the dispute.<\/p>\n

3. Arbitration within the Kingdom must take place at the Saudi Center for Commercial Arbitration or at one of the licensed arbitration centers.<\/p>\n

Article 70:<\/span><\/p>\n

The Administrative Court has jurisdiction to adjudicate all disputes arising from the application of the regulations.<\/p>\n

Article 71:<\/p>\n

The Authority shall maintain detailed records and registers of all transactions involving the leasing, investment, or sale of state-owned real estate, or the establishment of rights therein, and such records must specify the assets subject to the transaction, the date and term of the agreement, the type of right being transferred, the consideration, the parties to the transaction, and the details of the contractual provisions with the transferee.<\/p>\n

Article 72:<\/p>\n

The procedures set forth in these regulations may be carried out electronically.<\/p>\n

Article 73:<\/p>\n

The governor shall issue the necessary decisions to implement the regulations.<\/p>\n

Article 74:<\/span><\/p>\n

The regulations shall be issued by a decision of the Council, published in the Official Gazette, and shall take effect on the date of their publication.<\/p>\n

 <\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 17<\/span> Minutes<\/span><\/span>The Official Gazette - Umm Al-Qura - published in its latest issue issued last Friday, details of the Board of Directors (Board of Directors of the General Authority for State Properties) Decision No. (Q\/1\/18\/2023) dated 10 Rabiul Awwal 1445 H (third edition) regarding the regulation of disposal of state real estate. According to the Umm Al-Qura newspaper, the regulation on the disposal of state real estate consists of 7 chapters distributed ... Read more<\/a><\/p>","protected":false},"author":27,"featured_media":68553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[119],"tags":[],"class_list":["post-62640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-finance"],"acf":{"amlak_post_excerpt":"\u0623\u0645 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