Government agencies can rent real estate outside Saudi Arabia for a maximum 10 years

Government agencies can rent real estate outside Saudi Arabia for a maximum 10 years

RIYADH — The State Properties General Authority revealed the regulations for renting real estate by government agencies outside Saudi Arabia.

According to the regulations, the lease 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 that do not exceed 10 years.

It is permissible for any government agency to rent property outside the Kingdom only when it is urgently needed, and that the rental is in accordance with the provisions of the issued regulations. There should be a necessary financial appropriation for renting the property in the government agency’s budget.

The government agency shall coordinate with the authority to ensure that there is no real estate available for the state that meets its needs and that the real estate shall be allocated for the purpose for which it was rented. The area of the real estate shall be rented in accordance with the standards approved by the authority.

The regulations stipulate that the government agencies must submit to the authority a request in the prescribed form expressing their desire to rent, specifying the purpose of the rental, the type of property required, the