Implementing Regulation of the Law of State Leasing of Real Property

Article 1

  • 1- The words and phrases contained in this Regulation shall have the meanings specified next to each of them in Article (1) of the State Leasing of Real Estate System issued by Royal Decree No. (M/136) dated 28/12/1443 AH.

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

    • Competition: The public competition through which the Authority invites potential real estate lessors to submit their bids regarding the rental request advertisements.

    • Contract: The lease contract concluded between the Government Agency and the lessor according to the approved unified lease contract model by the Authority.

    • Agency Personnel: Those who work for the Government Agency or provide a service to it on a permanent or temporary basis, necessitating the allocation of space for them in the real estate intended for lease.

Chapter 1: Lease Plan

Article 2

  • 1- The Government Agency must prepare the annual plan referred to in Article (3) of the Law according to the approved plan model from the Authority, and the plan must include the following data:

    • A- The area, city, or governorate intended for leasing.

    • B- The type of real estate intended to be leased.

    • C- The purpose of the lease.

    • D- Information about the agency's personnel, such as their numbers, levels, and organizational structure.

    • E- Any other data required by the Authority.

  • 2- The Government Agency shall publish its annual plan on its website and portal during the first quarter of each fiscal year, and it must update the data of the annual plan periodically throughout the fiscal year to clarify the leasing operations completed by the Government Agency in accordance with its annual plan.

  • 3- Exempted from publishing the annual plan for leasing operations are the government agencies that have been issued orders, decisions, or directives mandating the confidentiality of their leasing operations.

Article 3

The Government Agency is obligated, when submitting a request to lease a property, to adhere to its annual plan, with the following exceptions:
1- If the Government Agency was established after the beginning of the fiscal year.
2- If unforeseen circumstances arise for the Government Agency after the plan has been prepared and published, subject to the approval of the authority.

Chapter 2: Conditions of Leasing

Article 4

The Government Agency shall provide the authority with proof of the availability of the necessary financial appropriation for leasing and utilizing the real estate.

Article 5

The term "exploitation of the real estate" mentioned in paragraph (3) of Article (4) of the law refers to the ability of the government agency to benefit from the real estate through its rehabilitation, furnishing, preparation, and similar activities.

Article 6

The Government Agency, when submitting a rental application for the housing of its employees, must provide the Authority with proof of meeting the requirements of Article (5) of the Law.

Article 7

For the purpose of applying the provisions of the Law and the Regulation, structural defects refer to any flaw in the construction works or their protective elements that weakens the strength, stability, or integrity of the building, or any defect resulting from errors, malfunctions, or deficiencies in the design, materials, location, or construction.

Article 8

The Real Estate intended for lease must meet all the regulatory requirements and necessary licenses for benefiting from and utilizing the Real Estate, including security, safety, prevention, and fire protection requirements, as well as any other requirements specified by the authority.

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