Article 27 of the Saudi State Leasing of Real Estate Law

This article opens a special route of leasing: lease ending in ownership, that is, the agency leases the property on the basis that its ownership passes to it in the end.

The conditions for this, according to the text, are:

• The approval of the General Authority for State Real Estate.
• The approval of the Ministry of Finance.
• It must be as the regulations set.
• It must be without prejudice to the relevant laws.

Requiring two approvals reflects that this type of contract has a greater financial effect, because it ends by transferring ownership to the State.

The article does not detail how this contract works or its financial terms, but refers to the regulations.

For the lessor, this is an option that may be available to sell his property to the State by way of a lease ending in ownership once the required approvals are obtained.

Article 26 allows the Authority to make periodic visits to leased properties, and Article 28 requires the Authority to prepare forms of the unified lease contract with the provisions mentioned in it.

If you have a practical question about leasing a property to a government agency, it is best to consult a lawyer who specializes in real estate or administrative cases.