Article 3 of the Saudi State Leasing of Real Estate Law
المادة 3 من نظام استئجار الدولة للعقار
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 تحدده اللائحة. ولا يترتب على نشر الجهة الحكومية خطتها أي التزامات.
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 3 explained in plain English
This article places a planning duty on every government body (which under Article 1 means ministries, authorities, public institutions and the like):
- Preparing an annual plan for its real estate leasing operation.
- That this be in coordination with the Authority, the General Authority for State Real Estate.
- That the plan be prepared before the start of each fiscal year.
- Publishing the plan on the body's website or by any other means.
The details of the plan and its publication are as the Regulations specify, so the article does not state the content or form of the plan.
The important provision for lessors is that publishing the plan creates no obligations. If a government body announces in its plan its intention to lease a building in a certain city, this does not mean it is obliged to lease, and it gives a real estate owner no right to have it lease from him.
The article is consistent with the objective of regulating leasing according to government bodies' needs in Article 2. It also comes before the actual leasing, which Article 4 restricts to urgent need, the Authority's approval and the controls stated in it.
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
Fahad, the owner of a commercial building in Dammam, follows the annual plan published by a government body and notes that it includes a need to lease a headquarters in the area. Fahad benefits from the plan in preparing, but he knows that publishing it creates no obligation on the body to lease from him or from anyone else.
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 3 of the Saudi State Leasing of Real Estate Law
Must a government body prepare a plan for leasing real estate?
Yes. In coordination with the Authority it must prepare an annual plan before the start of each fiscal year and publish it as the Regulations specify.
Is a government body bound by what it published in its plan?
No. The article provides that the government body's publishing its plan creates no obligations.
Where is the leasing plan published?
On the body's website or by any other means, as the Regulations specify.
More articles on Rules for Government Leasing
- 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.
- Article 20
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.
يكون استئجار الجهات الحكومية للعقار خارج المملكة وفقاً لضوابط يصدرها المجلس بالتنسيق مع الجهات ذات العلاقة، وتتضمن تلك الضوابط التوازن بين مصلحة الشراء أو الاست
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.