Saudi Arabia to implement State's Property Rental Law from Feb. 2

Hamzah AlAskar, State Properties General Authority's Deputy Governor for Regulatory and Legal Affairs

State’s Property Rental and Eviction Law and its executive regulations will be effective as of Feb. 2, according to Hamzah AlAskar, Deputy Governor for Regulatory and Legal Affairs at State Properties General Authority.

During a panel of the Real Estate Future Forum, AlAskar said the law is characterized by flexibility as well as sustainable real estate and financial solutions that contribute to enhancing the efficiency and productivity of real estate leased by the state, Saudi Press Agency reported.

He added that the law is a qualitative leap, as it was updated to keep pace with the development requirements for the next stage.

It also enhances governance and automation of rental procedures, with high transparency. In addition, the law unifies the reference for organizing, supervising and controlling state real estate, including leasing properties by the state.

Further, the law aims to raise the efficiency of spending the financial costs of renting, as well as contribute to rationalizing real estate spending through renting at fair value based on market prices. It is also to reduce the expenses of the rental portfolio, and develop the exploitation of the rented property by government agencies.

The law targets ministries, public agencies and institutions, in addition to property owners or whoever has the right to lease it legally.

In July 2022, the Saudi Cabinet approved the State's Property Rental and Eviction Law, according to data available with Argaam.