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Regulations for Government Entities Renting Real Estate Outside the Kingdom of Saudi Arabia - 1444

Article 1

The following words and phrases - wherever they appear in the regulations - shall have the meanings specified next to each:
Regulations: Regulations for the leasing of properties by government agencies outside the Kingdom.
Authority: State Properties General Authority.
Government Agencies: Ministries, government bodies, authorities, public interests, public institutions, and entities with independent public legal personality.
Head of the Government Agency: The primary responsible person in it or their representative.
The Kingdom: The Kingdom of Saudi Arabia.

Article 2

No Government Agency is permitted to lease Real Estate outside the Kingdom except in cases of urgent necessity, and the leasing must be in accordance with the provisions of the regulations, adhering to the following:
1- The necessary financial Appropriation for leasing the Real Estate must be available in the budget of the Government Agency.
2- The Government Agency must not have any unused Real Estate that meets its needs.
3- Coordination with the authority to ensure that there is no Real Estate available for the state that meets its needs.
4- The Real Estate must be designated for the purpose for which it is leased.
5- The area of the Real Estate to be leased must comply with the standards approved by the authority, and within the limits of the needs of the Government Agency wishing to lease.

Article 3

The rental of real estate by government agencies outside the Kingdom shall be as follows:
1- Submission of the claim to the authority, using the designated form.
2- Specification of the purpose of the rental, the type of real estate required, and the desired rental duration.
3- Specification of the required location and security specifications, as well as technical specifications, such as the number of employees, the number of parking spaces, warehouses, and others.
4- The authority shall approve the initial rental request or offer a government building that meets the agency's needs within (10) working days from the date the government agency submits the claim.

Article 4

Article 5

Except for those specified by the regulations to be provided with accommodation, the accommodation of employees is not considered a necessity that justifies leasing. If the purpose of the lease is to provide accommodation for employees who are required by the regulations to be accommodated, the amount paid by the Government Agency for the lease or otherwise shall not exceed the cash housing allowance for the beneficiary at the time of leasing or renewal.

Article 6

Article 7

Article 8

1- The rental contract shall be for a period not exceeding (five) years, and it may be stipulated in the contract that it can be automatically renewed for a similar period or periods not exceeding (ten) years, unless one party notifies the other party of its desire not to renew at least (one hundred and eighty) days prior to the expiration date of the contract or the end of the renewed term.
2- Notwithstanding paragraph (1) of this article, in cases of necessity deemed by the government agency, the contract may be renewed for additional periods after the approval of the authority. 
3- The government agency shall notify the authority of its desire to renew or terminate the rental contract at least (one hundred and twenty) days prior to the expiration date of the contract or the end of the renewed term.

Article 9

1- The head of the Government Agency or an authorized delegate shall sign the lease Contract, in accordance with the financial allocations.
2- The Government Agency shall manage the lease Contract and pay its value.
3- The value of the Contract shall be paid in equal installments at the beginning of each contractual year of the duration of the Contract.
4- The Government Agency shall provide the authority with a copy of the lease Contract and any amendments, renewals, or terminations that occur in accordance with the regulations.

Article 10

Notwithstanding the provisions of Article Three of the regulations, the Government Agency may contract directly in the following cases:
1- Providing temporary accommodations for the mission or housing for the heads of missions or employees. The mission may benefit from any of the available options in the host country - offices, furnished housing units, hotel apartments, or hotels - provided that the real estate is furnished and ready for use for a period not exceeding (six months), and it may be extended for a similar period after raising it to the authorized person in the Government Agency, within the limits of the financial appropriations approved in the budget of the Government Agency.
2- If the estimated cost of renting a permanent location for the offices of the missions or the attached specialist offices does not exceed three hundred thousand dollars annually per location.
3- If the estimated cost of renting a permanent location for the housing of the head of the mission or employees does not exceed fifty thousand dollars annually per location, within the limits of the financial appropriations approved in the budget of the Government Agency.
4- If the real estate is adjacent to the real estate being utilized by it, whether leased or owned for the purpose of expansion, and this is after obtaining the approval of the authority.

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