• The terms and phrases mentioned here - wherever they appear in these regulations - shall have the meanings specified next to them, unless the context requires otherwise:

• The Kingdom: The Kingdom of Saudi Arabia.

• The Regulations: Regulations for the leasing of real estate by government agencies outside the Kingdom of Saudi Arabia.

• The Authority: State Properties General Authority.

• Government Agencies: Ministries, government bodies, authorities, public interests, public institutions, and entities with independent public legal personality wishing to lease real estate outside the Kingdom.

• Head of the Government Agency: The Minister, the Chairman of the Board of Directors, or the highest official in the government agency that does not have a Board Chairman, or their delegate.

• Employees of the Government Agency: Those who work for the government agency or provide services to it on a permanent or temporary basis, including members of diplomatic missions.

• The Mission: The embassy or permanent delegation to international or regional organizations, or the consulate, or offices affiliated with the Ministry of Foreign Affairs abroad.

• Head of the Mission: The person selected to work in this capacity.

• The Host Country: The country in which the real estate to be leased is located.

• The Lessor: The owner of the property, or the person who has the right to lease it according to the laws of the host country.

• Renewal: An agreement between the parties to the contract to re-enter into the expired contract, or one nearing expiration, under the same terms and conditions of the previous contract, or with modifications to them.

• No Government Agency may lease Real Estate outside the Kingdom except in cases of urgent need after obtaining the approval of the Authority, while adhering to the following:

• A- The Government Agency must not have Real Estate that meets its needs and is available for use and not exploited.

• B- The Authority must not have Real Estate that meets the needs of the Government Agency.

• C- There must not be any vacant space within state properties in the same city that can be utilized to meet the needs of the Government Agency, after obtaining the approval of the Government Agency utilizing the Real Estate, and without prejudice to the operations of any other Government Agency involved in the same Real Estate.

• D- The Government Agency must have the necessary financial appropriation to lease and utilize the Real Estate.

• E- The Government Agency must obtain the approval of the Ministry of Foreign Affairs if it wishes to lease an office or an independent building outside the mission's headquarters.

• F- Consideration must be given to balancing the interests of purchasing and leasing according to the Government Agency's plan for the need for Real Estate outside the Kingdom.

Except for those specified by the regulations for housing, the housing of employees of the Government Agency is not considered a necessity that justifies renting. If the purpose of the rental is to house employees who are required by the regulations to be housed, the amount paid by the Government Agency for the rental shall not exceed the cash housing allowance for the beneficiary at the time of renting, extension, or renewal. This is excluded from any royal decrees, orders, or decisions issued in this regard.

• The following conditions must be met for the Real Estate intended for lease:

  • A- It must be free from structural defects.

  • B- It must meet the licensing requirements from the relevant authorities in the host country.

  • C- Its specifications must align with the needs of the Government Agency.

  • D- The area of the Real Estate to be leased must be within the needs of the Government Agency wishing to lease according to the standards approved by the authority.

  • E- It must be insured by the lessor - if available - in accordance with the laws of the host country.

  • F- It must not have any violations from any relevant authority that affect its usability, and it must not be subject to dispute.

  • G- It must not belong to any employee of the authority or the Government Agency, or a relative up to the third degree, or anyone who has a direct influence on the leasing process.

  • H- The Real Estate must not belong to any person prohibited from dealing with according to the regulations, rules, and decisions issued by the relevant authorities in the Kingdom or the host country.

• 1- The Government Agency must submit a claim to lease real estate outside the Kingdom, accompanied by financial appropriations and approvals - if any - according to the prepared form, which must include the following:

  • A- The type of real estate requested and its location.

  • B- The purpose of leasing the real estate.

  • C- The duration of the lease.

  • D- The technical and security specifications of the real estate.

• 2- The claim is returned to the Government Agency for correction or to complete the documents within (fifteen) working days.

• 3- The authority studies the lease claim and issues its decision to approve it after coordinating with the entities wishing to lease in the same city - to avoid competition among them and achieve efficiency in the leasing process - or to reject it, or to offer real estate to the state that meets the needs of the Government Agency, within a period not exceeding (fifteen) working days from the date of completion of the claim, and the authority may extend this period for a similar duration, and in case the authority rejects the claim, the decision must be justified.

• A- The Government Agency shall form a Committee of no less than three members.

• B- The Committee, in coordination with the head of the mission or his delegate, shall review the approved offers to evaluate them from a technical, security, and financial perspective, ensuring their suitability for the needs of the Government Agency, and recommend the most appropriate one, preparing a report within a period not exceeding thirty days from the date of the Committee's formation.

• C- The Committee shall negotiate with the owners of the real estate to reach the best possible price offer in accordance with the prevailing prices in the city.

• D- The Government Agency shall submit the report mentioned in paragraph (2) of this article to the head of the Government Agency or his delegate to complete the legal procedures.

The Government Agency communicates with the relevant security authorities to ensure that the selected real estate does not belong to individuals or entities with whom dealings are prohibited.

• 1- The contract shall be for a period not exceeding (five) years, and it shall automatically renew for a similar period or periods - after the approval of the authority - not exceeding (twenty) years from the date of the contract's conclusion, unless one party notifies the other of its desire not to renew, at least (sixty) days before the contract's expiration date, taking into account the host country's laws regarding the provisions for notifying the desire not to renew.

• 2- Notwithstanding paragraph (1) of this article, in cases of necessity deemed by the government agency, and based on reasons accepted by the authority; the contract may be renewed for additional periods exceeding (twenty) years, but not exceeding (thirty) years.

• 3- The government agency shall notify the authority of its desire to renew or terminate the contract at least (one hundred and twenty) days before the contract's expiration date; in accordance with the prepared form for that purpose.

• A- The head of the Government Agency or an authorized representative shall sign the Contract in accordance with the financial appropriations.

• B- The Government Agency shall manage the Contract and pay its value.

• C- The value of the Contract shall be paid in equal installments at the beginning of each contractual year of the Contract duration, or according to the terms of the Contract.

• D- The Government Agency shall provide the Authority with a copy of the Contract, along with any amendments, renewals, or terminations; in accordance with the regulations.

• E- The Government Agency or its authorized representative shall prepare a report upon receiving and delivering the Real Estate; according to the prepared model for that, which shall include the condition of the Real Estate and its facilities, and the Government Agency shall provide the Authority with a copy of these reports within (ten) working days from the date of receiving or delivering the Real Estate.