SPGA approves regulations for government’s real estate ownership, rent abroad

Logo of State Properties General Authority

State Properties General Authority’s (SPGA) board of directors approved regulations for state ownership of real estate as well as for government agencies renting properties outside of Saudi Arabia.

These regulations aim to govern procedures and raise transparency level, which reflect through boosting the efficiency of government spending on and developing real estate.

SPGA stated that the regulatory provisions apply on applications for real estate ownership submitted by government agencies within the Kingdom. They include 22 articles related to ownership types, procedures, receiving offers, and regulatory provisions.

Regulations stipulated that the government agency must not have an unexploited or any other property available that meets its needs.

They also make SPGA’s board approval mandatory for the government agency that does not have the legal authority to own the property, provided that the necessary financial appropriation is available to own the property.

Regulations indicated that a government agency must not rent a property outside the Kingdom unless essential and it must adhere to the necessary financial appropriation in the agency’s budget.

The property must be allocated for the purpose for which it is rented, and its area should be in accordance with SPGA’s standards and within the limits of the need of the government entity wishing to rent.