The following words and phrases - wherever they appear in this Regulation - shall have the meanings set forth next to each of them:

The Authority: The State Properties General Authority.

The Regulation: The Regulation for the Action in State Properties.

The Council: The Board of Directors of the Authority.

The Governor: The Governor of the Authority.

State Properties: All lands within the Kingdom that are detached from private ownership - established by a title deed - and all lands and buildings owned by the state both inside and outside the Kingdom.

The Investor: A natural or legal person entitled to engage in commercial and investment activities in accordance with the relevant laws and regulations.

Allocation: Placing any of the state properties at the disposal of a government entity or others to achieve a public service or benefit.

Investment: Employing and operating state properties with the aim of preserving, developing them, meeting government needs, public projects, and benefiting from them to achieve financial returns and increase state revenues.

Public Auction: A means aimed at reaching the highest price by inviting the largest number of investors to submit their bids for the investment opportunity.

Open Public Auction: A method aimed at reaching the highest price through the submission of the highest bid in an open gathering after being announced in accordance with the provisions of this Regulation.

Compensation: The exchange of a property owned by others for a property owned by the state.

Construction and Operation and Transfer Contract: A contract that includes granting the investor (or the company owned in partnership between the Authority and the Investor) the right to develop state property and the right to exploit the developed works and constructions for a specified period, with the investor committing to return the property and the developed works and constructions to the Authority after the period specified in the concluded contract.

Excess Land from Expropriation: The excess area of state properties that arises from expropriation projects for public interest.

Excess Land from Organization: The area of state properties that arises from reorganizing existing residential areas.

Excess Land from Planning: The area of state properties that arises from reorganizing land plans.

Excess Land from Grants: The area of state properties allocated for the grantee that exceeds the area specified in the grant order.

Annual Rent: The value of the annual payment stipulated in the lease contract of state properties or their investment.

The Regulation aims to achieve the following:

1- Development of state properties.

2- Achieving the optimal utilization of state properties in a manner that fulfills the desired objectives.

3- Organizing the procedures related to the action regarding state properties, including bidding and awarding, in a way that ensures transparency and objectivity.

The provisions of the Regulation apply to all state properties, except for those specified by laws, regulations, and orders to be allocated to government entities or to fall under their supervision.

The Authority may, within the scope of its jurisdiction, take action - in accordance with the provisions of the regulation - regarding any of the state properties, in any of the following forms of action:

1- Allocation.

2- Lease.

3- Investment.

4- Sale or compensation.

Except for allocation, the action regarding state properties shall be for the best financial return that can be obtained after conducting the necessary evaluations.

The allocation of state properties for the benefit of government entities, within the limits of their needs, shall be in accordance with the regulations approved by the Council. The Authority may allocate state properties to non-government entities after obtaining the approval of the Prime Minister.

The state property allocated may only be used for the purpose for which it was designated and by the entity to which it was allocated.

1- The entity assigned the Real Estate of the state must return it to the authority when it no longer needs it.

2- If the assigned Real Estate of the state is left unused, the authority shall retrieve it after notifying the entity to which the Real Estate was assigned.

3- The authority may cancel the assignment when necessary, according to the regulations approved by the Council.