Article 20 of the Saudi State Leasing of Real Estate Law
المادة 20 من نظام استئجار الدولة للعقار
Government agencies lease property outside the Kingdom under rules issued by the Authority's board in coordination with relevant bodies, balancing the interest of buying versus leasing.
Official text (Arabic)
This article has not been amended since the law was issued.
يكون استئجار الجهات الحكومية للعقار خارج المملكة وفقاً لضوابط يصدرها المجلس بالتنسيق مع الجهات ذات العلاقة، وتتضمن تلك الضوابط التوازن بين مصلحة الشراء أو 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 20 explained in plain English
This article deals with a special case: government agencies leasing a property outside the Kingdom.
The article does not set detailed rules for this leasing, but provides the following:
- Leasing outside the Kingdom is under rules issued by the Board, that is, the Authority's board of directors as defined in Article 1.
- The rules are issued in coordination with the relevant bodies.
- The rules must include a balance between the interest of buying or leasing, that is, comparing the feasibility of buying the property with the feasibility of leasing it.
The reason for singling out this case is that properties outside the Kingdom are subject to different conditions and markets, so they needed special rules. For details, such as procedures or criteria, one refers to the rules issued by the Board, not to this article.
Someone who has a property outside the Kingdom and wishes to lease it to a Saudi government agency is best advised to consult a lawyer who specializes in international and foreign investment cases to learn the rules in force.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentAdministrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Al-Safwa Law Office and Legal Consultancy
Frequently asked questions about Article 20 of the Saudi State Leasing of Real Estate Law
Does the law cover government agencies leasing property outside the Kingdom?
Yes. The article provides that this is under rules issued by the Board in coordination with the relevant bodies.
What must the rules for leasing outside the Kingdom include?
They must include a balance between the interest of buying or leasing.
More articles on Rules for Government Leasing
- Article 3
The article requires a government body, in coordination with the Authority, to prepare an annual plan for its real estate leasing before each fiscal year and publish it, without the publication creating any obligations.
على الجهة الحكومية -بالتنسيق مع الهيئة- وضع خطة سنوية لعملية استئجارها للعقار قبل بداية كل سنة مالية، ونشرها على موقعها الإلكتروني أو أي وسيلة أخرى، وفقاً لما ت
- Article 4
The article bars a government body from leasing real estate except in urgent need, after the Authority's approval and under the Law, with controls including no unused suitable real estate and the necessary financial appropriation.
لا يجوز لأي جهة حكومية استئجار عقار إلا عند الحاجة الماسة له، وبعد موافقة الهيئة، وأن يكون الاستئجار وفقاً لأحكام النظام واللائحة، مع التقيد بالضوابط الآتية: 1-
- Article 5
The article does not count housing a government body's personnel as a need permitting leasing, except for bodies whose laws provide for housing, and the rent may not exceed the personnel's cash housing allowance.
لا يعدّ إسكان منسوبي الجهة الحكومية من الحاجات التي تجيز لها الاستئجار، فيما عدا الجهات الحكومية التي تنص أنظمتها على إسكان منسوبيها. وفي جميع الأحوال، يجب ألا
- Article 9
The article allows two or more government bodies to lease one piece of real estate, as the Regulations specify.
يجوز لجهتين حكوميتين -أو أكثر- استئجار عقار واحد 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.