Saudi SPGA discloses significant details of Property Rental and Eviction Law

Logo of The State Properties General Authority (SPGA)

The State Properties General Authority (SPGA) announced the most prominent aspects of the Property Rental and Eviction Law, including granting more flexibility for the determination of lease contract duration, which may reach up to five years, with the possibility of renewal.

The duration may reach 25 years, but this is subject to the approval of the authority. It may also extend to 50 years for the properties built on government lands, for which SPGA contracts with investors to set up investment projects.

Under the law, one property may be leased a number of government agencies. In addition, government agencies are obligated to develop an annual plan in coordination with SPGA for leasing the property before the beginning of each fiscal year.

The law targets ministries, authorities and public institutions, in addition to the property owner or whoever has the right to rent it legally.

The relevant Executive Regulations are being prepared for approval by the authority.

The Saudi Cabinet approved, on July 26, the Property Rental and Eviction, according to data available with Argaam.