Article 4 of the Saudi State Leasing of Real Estate Law
المادة 4 من نظام استئجار الدولة للعقار
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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- ألا يكون لدى الجهة الحكومية الراغبة في الاستئجار عقار غير مستغل يلبي احتياجاتها.
2- ألا يتوافر لدى الهيئة عقار يلبي احتياج الجهة الحكومية الراغبة في الاستئجار.
3- أن يتوافر لدى الجهة الحكومية الاعتماد المالي اللازم لاستئجار واستغلال العقار.
4- أي ضابط آخر يقره المجلس.
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 4 explained in plain English
This is one of the most important articles in the Law, because it makes government leasing a restricted exception. No government body may lease real estate except when all of the following are met:
- Urgent need for the real estate.
- The approval of the Authority, the General Authority for State Real Estate.
- That the leasing be in accordance with the provisions of the Law and the Regulations.
In addition, the following controls must be observed:
- The body wishing to lease must not have unused real estate that meets its needs.
- The Authority must not have real estate that meets the body's need.
- The body must have the necessary financial appropriation to lease and use the real estate.
- Any other control the Council approves, meaning the Authority's board of directors.
In practical terms, leasing is the last option, after making sure there is no alternative with the body itself or with the Authority, and with money allocated for it.
These controls come in the context of the advance planning that Article 3 requires (the annual plan). Article 5 adds another restriction, as housing the body's personnel is not counted among the needs that permit leasing, except for bodies whose laws provide for housing their personnel.
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
A government body in Jeddah asked to lease an additional building for its departments. Before the request is considered, the need must be urgent, the Authority must approve, the body must have no unused building that suffices for it, the Authority must have no real estate meeting its need, and the body must have the necessary financial appropriation.
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 4 of the Saudi State Leasing of Real Estate Law
When may a government body lease real estate?
In urgent need and after the Authority's approval and under the Law and the Regulations, subject to the controls stated in the article.
May a government body lease if it has an unused building?
No. One of the controls for leasing is that the body must not have unused real estate that meets its needs.
Can other leasing controls be added?
Yes. The article allows adding any other control approved by the Authority's board of directors.
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 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.