Regulations for the Allocation and Repossession of State Properties

Article 1

  • The following words and phrases - wherever they appear in these regulations - shall have the meanings specified next to each, unless the context requires otherwise:

    • The Kingdom: The Kingdom of Saudi Arabia.

    • The Regulations: Regulations for the allocation and recovery of state real estate.

    • The Authority: The State Properties General Authority.

    • The Governor: The Governor of the Authority.

    • The Designated Entities: Ministries and other government agencies funded by the state’s general budget, or entities for which orders or decisions have been issued allowing the allocation of real estate to them.

    • The Requesting Entity: A government entity or one of the entities eligible for real estate allocation, that submits a request for allocation.

    • The Committee: The Permanent Committee concerned with the allocation and recovery of state real estate.

    • State Real Estate: All lands and buildings owned by the state inside and outside the Kingdom, confirmed by a title deed, except for what is excluded by a regulatory text, and lands located within the Kingdom that are detached from private ownership.

    • Allocation: Placing any of the state real estate at the disposal of the designated entity for exploitation or benefit.

    • Allocation Decision: A decision issued by the Authority regarding placing state real estate at the disposal of the designated entity.

    • Recovery: Cancellation of the allocation and returning the real estate to the Authority.

    • The Portal: The electronic portal approved by the Authority and subject to its management.

Article 2

The purpose of these regulations is to organize matters related to the allocation of state properties and their recovery, without prejudice to the relevant laws, orders, decisions, and agreements.

Article 3

  • 1- The regulations apply to all entities requesting allocation and the entities allocated to.

  • 2- The provisions of the regulations shall apply - without prejudice to what is required by the relevant laws - to all allocation operations, except for the following:

    • A- Those for which a royal order has been issued; they shall be executed directly, by completing the procedures.

    • B- Allocation of state real estate to government entities outside the Kingdom, provided that it is allocated in accordance with the regulations governing the provisions of foreign real estate.

    • C- Those allocated through the approval of urban planning decisions, including facilities designated for government entities, shall complete their procedures.

Article 4

State properties shall not be allocated to non-governmental entities except with the approval of the Prime Minister, and exceptions are made for entities that are subject to specific orders or decisions.

Article 5

  • The requesting entity for the allocation - in coordination with the Authority - shall develop a plan to estimate its future needs for Real Estate for a period of (three) financial years, according to the approved plan model from the Authority, provided that the plan includes the following data:

    • 1- The area, city, or governorate in which the allocation is desired.

    • 2- The type of Real Estate and its specifications.

    • 3- The purpose of the Real Estate.

    • 4- Information about the personnel of the Government Agency, such as their numbers, levels, and organizational structure.

    • 5- Any other data required by the Authority.

Article 6

  • 1- No Real Estate belonging to the state shall be allocated to entities except in accordance with the needs assessment plan stated in Article (5) of the regulations, while adhering to the following:

    • A- The requesting entity must not have any unutilized Real Estate that meets its needs.

    • B- The area of the Real Estate requested for allocation must comply with the standards adopted by the authority in coordination with the relevant regulatory entities, and within the limits of the needs of the requesting entity.

  • 2- Notwithstanding paragraph (1) of this article, the authority may allocate the Real Estate to the requesting entity without adhering to the plan in the following cases:

    • A- If the government agency was established after the beginning of the fiscal year.

    • B- If circumstances arise for the entity that were not anticipated at the time of submitting and approving the plan, subject to the authority's approval.

    • C- Temporary allocation of Real Estate.

    • D- Any other case determined by the authority.

Article 7

  • 1- The entity requesting the allocation must submit a claim for allocation through the portal, in accordance with the prepared form, accompanied by the following:

    • A- A brief report on the targeted activity, estimates of employees, beneficiaries of the activity, the preliminary plan for the project elements, and the required area.

    • B- A statement of other state real estate allocated to the entity requesting the allocation, in the same city or governorate.

    • C- Any other documents required by the authority.

  • 2- Subject to the provisions of paragraph (1) of this article, if the entity requesting the allocation seeks to allocate a specific real estate to the state; it must attach the following:

    • A- A report on the specified real estate, its specifications, and the reasons for its selection.

    • B- The geographical coordinates of the site, and an aerial photograph of it.

  • 3- The claim is returned to the entity requesting the allocation for correction or completion of documents; if (sixty) days pass without correction or completion, the claim shall be considered as if it never existed.

  • 4- The claim, once completed, is referred to the committee for study and to determine its suitability with the needs of the entity requesting the allocation, provided that the actual need assessment is in accordance with the criteria adopted by the authority in coordination with the relevant government entities.

  • 5- The committee shall submit its recommendation to the governor within (thirty) days from the referral of the claim, and the governor shall issue his decision regarding the allocation; in case of refusal of the allocation, the decision shall be substantiated.

  • 6- A certificate called (Allocation Certificate) shall be issued with a special number to document the allocation decision.

Article 8

  • 1- The following conditions must be met for state property intended for allocation:

  • A- Its use must be consistent with the approved city plans.

    • B- It must be vacant or not utilized by the entity to which it is allocated.

    • C- There must be no ongoing disputes at the time of allocation, and it must be free from third-party rights.

  • 2- Subject to the conditions stated in paragraph (1) of this article, no part of the land intended for allocation may be allocated unless it has been planned; if it has not been planned, a plan for land subdivisions must be prepared, taking into account the technical controls and requirements, design policies, and approved planning standards.

  • 3- Subject to the conditions stated in paragraph (1) of this article, the following conditions must be met for the allocation of buildings:

    • A- They must be free from structural defects.

    • B- They must meet the necessary licensing requirements from the relevant authorities.

Article 9

  • 1- Before allocating the Real Estate, the Authority ensures that there is an evaluation of the Real Estate intended for allocation by a qualified appraiser, who holds recognized and relevant professional qualifications and has recent experience in the Real Estate being evaluated, in accordance with the standards issued by the Saudi Authority for Accredited Valuers and the accounting standards and policies for the public sector approved by the Ministry of Finance.

  • 2- In the absence of the evaluation mentioned in paragraph (1) of this article, the Authority evaluates the Real Estate before allocation, ensuring that the evaluation includes the determination of the value of the Land and the value of the Building separately, and this is included in the allocation decision. The Authority shall notify the Ministry of Finance (Accounts Agency/Treasury) of the re-evaluation report.

  • 3- The Authority shall re-evaluate the Real Estate in the event of significant indicators of a decline in its value, and the Authority shall notify the Ministry of Finance (Accounts Agency/Treasury) of the re-evaluation report.

  • 4- The allocated Real Estate is delivered under an approved report from the Authority, signed by a representative of the Authority and the entity to which it is allocated, and supported by internal and external photographs.

Article 10

  • 1- The Authority is responsible for allocating state Real Estate to more than one government entity.

  • 2- The state Real Estate allocated to more than one government entity is considered joint; if it is surrounded by a single wall, or if they are housed in a single building, or if they share public services, such as electricity, water, sewage, or in contracts for operation, maintenance, cleaning, and security services.

  • 3- The Authority shall oversee the joint Real Estate in accordance with the policy for shared buildings adopted by the Authority in agreement with the Ministry of Finance and the Expenditure and Projects Efficiency Authority.

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