Regulations for Allocating State Real Estate to the Non-Profit Sector

Preamble

  • After reviewing the Council of Ministers Decision No. (946) dated 6/11/1445 AH, which states that "the General Authority for State Properties is authorized to allocate state properties for the benefit of the non-profit sector according to the regulations approved by the Board of Directors of the Authority in coordination with the Ministry of Human Resources and Social Development and the National Center for Non-Profit Sector." And after reviewing the Council of Ministers Decision No. (694) dated 19/10/1444 AH, which states in item (First) "approval to establish a program named (Sakhaa) to support the community by adopting sustainable development projects." And after reviewing the Council of Ministers Decision No. (266) dated 14/5/1442 AH, which states in paragraph (7) of Article (Fourth) "Taking into account the other competencies assigned to the Authority under the regulations, orders, decisions, and instructions related to state properties, the Authority shall undertake all tasks and competencies related to state properties, especially the following: 7- Allocating state properties to government entities and canceling their allocation when necessary. And establishing the necessary regulations and procedures for that." And after reviewing the regulations for the allocation and recovery of state properties approved by the Board of Directors Decision No. (Q/1/22/2024) dated 2/1/1446 AH.

  • Therefore, the Board of Directors of the Authority issued Decision No. (Q/46/2024) dated 10/2/1446 AH, corresponding to 14/8/2024 AD, regarding the approval of the regulations for the allocation of state properties to the non-profit sector.

First

  • The Authority applies the regulations for the allocation and recovery of state properties approved by the Board of Directors' Decision No. (Q/1/22/2024) dated 2/1/1446 AH, -and any amendments issued regarding it- when allocating state properties for the benefit of the non-profit sector, after verifying that there is no need for the Authority or any government entity for the property, and the words and phrases contained in this decision shall have the same meanings as those contained in those regulations unless the context requires otherwise.

Secondly

  • The allocation of state real estate for the purpose of providing and operating premises for the non-profit entity shall be in accordance with the following:

    • 1- The non-profit entity must not have been granted land or allocated real estate from state properties for this purpose.

    • 2- It must be based on the assessment of need determined by the authority, and the total area allocated to the entity for this purpose shall not exceed (2,500 m²).

    • 3- The non-profit entity may utilize part of the real estate, not exceeding 30% of the allocated area, to achieve the financial sustainability of the entity as specified in the allocation decision.

    • 4- The title deed shall be registered in the name of state real estate in favor of the Center for the Development of the Non-Profit Sector, and the name of the benefiting non-profit entity shall be specified in the deed.

Thirdly

  • The allocation of state real estate for the purpose of establishing developmental projects that have economic and social impact, which are non-profit and serve various fields such as health, education, social, industrial, cultural, tourism, technical, and other areas, aims to create a positive and sustainable transformation in society, in accordance with the following:

    • 1- The existence of a non-profit entity established in accordance with the applicable legal procedures.

    • 2- The presence of a donor.

    • 3- The existence of a project that achieves a developmental and social purpose that is non-profit.

    • 4- Preparation of a feasibility study for the project approved by the government agency supervising the project's activity.

    • 5- A portion of the real estate may be utilized, not exceeding 30% of the allocated area, to achieve the financial sustainability of the project.

    • 6- The title deed is registered in the name of state real estate in favor of the government agency that falls within its jurisdiction the activity of the non-profit entity's project, and the name of the benefiting non-profit entity is specified in the deed.

Fourthly

  • The construction of buildings on real estate designated for the benefit of the non-profit sector shall be in accordance with the standards and specifications approved by the State Properties General Authority, without prejudice to the requirements of the relevant government entities.

Fifth

  • The ownership of all fixed buildings added or established by non-profit entities on state properties shall revert to the state upon their recovery.

Sixthly

  • Requests for the allocation of state real estate for the benefit of non-profit entities shall be submitted as follows:

    • 1- The Center for the Development of the Non-Profit Sector shall submit its recommendation to the Authority regarding the allocation of state real estate after studying the request and verifying its compliance with the conditions stated in paragraph (Second) of this decision.

    • 2- The Sakhaa Program shall submit its recommendation regarding the allocation of the real estate after studying the request and verifying its compliance with the conditions stated in paragraph (Third) of this decision.

Seventh

  • If the non-profit entity no longer needs the real estate or in the event of its failure; the National Center for Non-Profit Sector or the Sakha Program - as applicable - will coordinate with the authority to reallocate it for another project. In the absence of another project, it will be returned to the authority to manage it as a property of the state.

Eighth

  • The Non-Profit Sector Development Center or the Sakha Program - as applicable - shall prepare an annual report on the status of the allocated real estate and the nature of its utilization activities.

Ninth

  • The government entity allocated state real estate - after the approval of the authority - shall enable non-profit entities to utilize a portion of the real estate to conduct their activities or provide humanitarian services in the buildings and facilities affiliated with them.

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