Money and business
8 requirements for government agencies to rent real estate outside the Kingdom

The General Authority for State Real Estate has set the controls for government agencies renting real estate outside the Kingdom, with the aim of regulating the process of diplomatic missions renting real estate outside the country’s territory and defining the tasks and competencies of the stakeholders in this process.
The Authority stipulated that it be free of structural defects, that it meet the necessary licensing requirements from the competent authorities in the host country, that its specifications be commensurate with the need of the government entity, and that the area of the property to be rented be within the limits of the need of the government entity wishing to rent in accordance with the standards approved by the Authority.
The Authority stipulated that it be free of structural defects, that it meet the necessary licensing requirements from the competent authorities in the host country, that its specifications be commensurate with the need of the government entity, and that the area of the property to be rented be within the limits of the need of the government entity wishing to rent in accordance with the standards approved by the Authority.
Rental requirements
The requirements also include that it be insured by the lessor – if available – in accordance with the laws of the host country, and that it must not be subject to a violation from any competent authority that affects its use, that it must not be the subject of a dispute, and that it must not belong to an employee of the authority or government agency. Or a relative up to the third degree or someone who has a direct influence on the rental process, and that the property does not belong to one of the persons prohibited from dealing with them in accordance with the rules, regulations and decisions issued by the relevant authorities. The relationship in the Kingdom or the host country.
It stressed that the government entity must submit a request to rent a property outside the Kingdom, accompanied by financial credits and approvals, according to the form prepared for this, provided that it includes the type of property required, its location, the purpose of renting it, the duration, and the technical and security specifications.
According to the regulations, the Authority studies the rental request and issues its decision to approve it after coordinating with entities wishing to rent in the same city – to avoid competition between them and achieve efficiency in the rental process – or to reject it, or to offer a property to the state that meets the government agency’s need, within a period not exceeding 15 working days. From the date the application is completed, the Authority may extend it for a similar period, and in the event that the Authority rejects the application; The decision shall be reasoned.
It stressed that the government entity must submit a request to rent a property outside the Kingdom, accompanied by financial credits and approvals, according to the form prepared for this, provided that it includes the type of property required, its location, the purpose of renting it, the duration, and the technical and security specifications.
According to the regulations, the Authority studies the rental request and issues its decision to approve it after coordinating with entities wishing to rent in the same city – to avoid competition between them and achieve efficiency in the rental process – or to reject it, or to offer a property to the state that meets the government agency’s need, within a period not exceeding 15 working days. From the date the application is completed, the Authority may extend it for a similar period, and in the event that the Authority rejects the application; The decision shall be reasoned.
The duration of the contract does not exceed 5 years
The controls stipulate that the contract must be for a period not exceeding “5” years, automatically renewed for a period, or similar periods – after the Authority’s approval – not exceeding “20” years from the date of concluding the contract, unless one of the two parties informs the other of its unwillingness to renew. At least 60 days before the end date of the contract, taking into account the laws of the host country regarding notification provisions of unwillingness to renew.
The regulations stated that the contract value is paid in equal installments at the beginning of each contractual year of the contract term, or according to the terms of the contract.
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