Article 28 of the Saudi State Leasing of Real Estate Law
المادة 28 من نظام استئجار الدولة للعقار
The Authority must prepare unified lease contract forms covering subletting and assignment, force majeure, equipping, maintenance and guarding, and the right to terminate at the end of each year or on abolition of the agency.
Official text (Arabic)
This article has not been amended since the law was issued.
تضع الهيئة نماذج عقد الاستئجار الموحد، تشتمل على الأحكام المتصلة بالآتي:
1- تأجير العقار المستأجر للغير من الباطن، أو التنازل عنه لمصلحة جهة حكومية أخرى.
2- القوة القاهرة أو الظروف الطارئة.
3- تجهيز العقار وتشغيله وصيانته ونظافته، والحراسات الأمنية - إن وجدت - ونحو ذلك.
4- حق الجهة الحكومية في إنهاء عقد الاستئجار مع نهاية كل سنة إيجارية.
5- الحق في إنهاء عقد الاستئجار في حالة إلغاء الجهة الحكومية المستأجرة.
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 28 explained in plain English
This article sets the minimum subjects that must be included in the forms of the unified lease contract prepared by the Authority. They are:
- Subletting and assignment: subletting the leased property to others, or assigning it in favor of another government agency.
- Force majeure or emergency circumstances.
- Equipping, operating, maintaining and cleaning the property, and security guarding if any, and the like.
- The government agency's right to terminate the contract at the end of each lease year.
- The right to terminate the contract if the leasing government agency is abolished.
Note that the article says the forms "include the provisions relating to" these subjects, meaning that the details of each provision are in the contract form itself, not in the article.
Of most concern to the lessor is item four, which means that the unified contract includes provisions on the agency's right to terminate the contract at the end of each lease year. The lessor should therefore read the contract form carefully before contracting.
The unified lease contract, under Article 1, is the contract form approved by the Authority. Article 27 deals with a lease ending in ownership, and Article 29 requires the Board to issue the regulations within 180 days of the date the law is published.
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.
Practical example
Sultan is considering an offer to lease his building in Dammam to a government agency for five years. When he reviews the unified contract form, he finds provisions on the agency's right to terminate the contract at the end of each lease year, and on maintenance, guarding and force majeure, so he takes them into account before contracting.
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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Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
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Frequently asked questions about Article 28 of the Saudi State Leasing of Real Estate Law
What terms does the unified lease contract include?
Provisions on subletting and assignment to another government agency, force majeure, equipping, operating, maintaining and cleaning the property and guarding, the right to terminate at the end of each lease year, and termination if the agency is abolished.
Can the government agency terminate the contract at the end of any year?
The article provides that the contract forms include provisions relating to the agency's right to terminate the contract at the end of each lease year.
Who prepares the forms of the unified lease contract?
The General Authority for State Real Estate prepares them.
More articles on Concluding the Unified Lease Contract
- Article 11
The article regulates concluding the lease contract with the approval of the head of the government body under the unified lease contract, the body managing it and paying its value, giving the Authority a copy, and delegating the power to conclude.
1- يُبرَم عقد الاستئجار بعد استكمال الإجراءات المنصوص عليها في النظام واللائحة بموافقة رئيس الجهة الحكومية، وفقاً لعقد الاستئجار الموحد. 2- تتولى الجهة الحكومية
- Article 27
A government agency may, with the approval of the Authority and the Ministry of Finance, lease a property ending in ownership as the regulations set, without prejudice to the relevant laws.
دون إخلال بالأنظمة ذات العلاقة، يجوز للجهة الحكومية -بعد موافقة الهيئة ووزارة المالية- استئجار العقار المنتهي بالتمليك، 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.

