Article 10 of the Saudi State Leasing of Real Estate Law
المادة 10 من نظام استئجار الدولة للعقار
The article sets the lease term at up to five years, extendable or renewable by up to five more with the Authority's approval, with possible terms of 25 years, or 50 years in special cases.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يكون عقد الاستئجار لمدة لا تزيد على (خمس) سنوات، وللجهة الحكومية -بعد موافقة الهيئة- تمديد، أو تجديد العقد قبل نهاية مدته، لمدة لا تزيد على (خمس) سنوات أخرى، وتضمن العقد أي تعديلات في الأجرة المتفق عليها، وذلك وفقاً لما تحدده اللائحة.
2- يجوز -بعد موافقة الهيئة- أن تصل مدة عقد استئجار العقار إلى (خمس وعشرين) سنة، وذلك وفقاً لما تحدده اللائحة.
3- يجوز وفق ضوابط يضعها المجلس، أن تصل مدة عقد استئجار العقار إلى (خمسين) سنة للعقارات المقامة على أراض حكومية تتعاقد في إنشائها الهيئة مع مستثمرين لمشاريع استثمارية.
4- تحدد اللائحة الإجراءات والمعايير الخاصة بمدد عقود الاستئجار.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 10 explained in plain English
This article regulates the term of the lease contract in four paragraphs:
1- The general rule: the term of the contract is not more than five years. The government body may, after the Authority's approval, extend or renew the contract before the end of its term for a period of not more than five further years, and the contract includes any amendments to the agreed rent, as the Regulations specify.
2- The long term: after the Authority's approval, the term may reach twenty-five years, as the Regulations specify.
3- Real estate on government land: the term may, under controls set by the Council, reach fifty years, for real estate built on government land for whose construction the Authority contracts with investors for investment projects. This case does not cover any real estate; it covers this type specifically.
4- Procedures and criteria: these are set by the Regulations.
Note that the extension or renewal must take place before the end of the contract term. Article 11 explains how the contract is concluded under the unified lease contract.
If you have a practical matter relating to leasing real estate to a government body, it would be best to consult a lawyer specializing in real estate cases or administrative cases.
Practical example
Majed leased his building in Khobar to a government body under a contract of five years. Before the term ended the body wished to continue, so it obtained the Authority's approval and renewed the contract for five more years, and the new contract included the agreed amendment to the rent.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 10 of the Saudi State Leasing of Real Estate Law
How long is a government body's lease contract?
Not more than five years, and it may be extended or renewed before its end, after the Authority's approval, for a period of not more than five further years.
Can a government lease contract be for 25 years?
Yes. After the Authority's approval the term may reach twenty-five years, as the Regulations specify.
When does the contract term reach 50 years?
For real estate built on government land for whose construction the Authority contracts with investors for investment projects, under controls set by the Council.
More articles on Lease Term and Renewal
- Article 12
The article requires a government body that remains in the leased real estate after the contract ends, without extension, renewal or vacating, to pay the rent for the period of its stay, as the Regulations specify.
في حال بقاء الجهة الحكومية بالعقار المستأجر بعد انتهاء مدة عقد الاستئجار دون تمديده، أو تجديده، أو إخلائه؛ تدفع قيمة أجرة مدة بقائها، وذلك وفقاً لما تحدده اللائ
- Article 13
The article requires the leasing government body to notify the lessor and the Authority of its wish not to extend or renew, and allows it to terminate the contract and vacate early in specified cases.
1- تبلغ الجهة الحكومية المستأجرة المؤجر والهيئة عن رغبتها في عدم تمديد أو عدم تجديد عقد الاستئجار عبر البوابة، أو بأي وسيلة أخرى، وذلك وفقاً لما تحدده اللائحة.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.