Article 8 of the Saudi State Leasing of Real Estate Law
المادة 8 من نظام استئجار الدولة للعقار
The article requires the Authority to study market prices and set a confidential maximum value, announce the leasing request on the portal within 15 days, and form committees in the government body to open and examine offers, including the financial controller.
Official text (Arabic)
This article has not been amended since the law was issued.
1- على الهيئة -قبل الإعلان في البوابة عن الرغبة في استئجار عقار- دراسة أسعار السوق، والاسترشاد بذلك في تقدير حد أعلى للقيمة الإجمالية المتوقعة للاستئجار، مع المحافظة على سرية التقدير. وتحدد اللائحة الضوابط اللازمة لذلك.
2- تعلن الهيئة في البوابة عن الرغبة في استئجار عقار لمصلحة جهة حكومية -وفقًا لأحكام النظام- خلال (خمسة عشر) يوماً من تلقيها طلب تلك الجهة. وتبين اللائحة متطلبات الإعلان وطريقته.
3- تكوّن في الجهة الحكومية لجان لفتح العروض وفحصها، ويشترط أن يكون المراقب المالي عضواً في لجنة فحص العروض بالإضافة إلى عضو من ذوي الخبرة والاختصاص وأن يُسترشد بالدراسة السوقية وحاجة الجهة. وتبين اللائحة آلية عملها وما يتعلق بالعروض وفحصها ونتائجها.
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 8 explained in plain English
This article regulates the stage of announcement and offers after the government body submits its request under Article 7, in three paragraphs:
1- Market study and the maximum limit: before announcing on the portal, the Authority must study market prices and be guided by them in estimating a maximum limit for the expected total value of the lease, while keeping the estimate confidential. The Regulations set the controls for this. Confidentiality here means that lessors do not know this limit when submitting their offers.
2- The announcement: the Authority announces on the portal the desire to lease real estate for the benefit of a government body within fifteen days of receiving the body's request, and the Regulations set out the requirements and method of the announcement.
3- Offer committees: committees are formed in the government body to open and examine offers, and the following are required of the offer-examination committee:
- That the financial controller be a member of it.
- That it include a member with experience and specialization.
- That it be guided by the market study and the body's need.
The Regulations set out how the committees work and what relates to offers, their examination and their results.
Article 9 allows two or more government bodies to lease one piece of real estate as the Regulations specify.
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
The Authority received a request from a government body to lease a headquarters in Madinah. The Authority studied market prices and estimated a confidential maximum value, then announced on the portal within 15 days of receiving the request. Several owners submitted their offers, and a committee in the government body, including the financial controller and a member with experience, examined them.
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 8 of the Saudi State Leasing of Real Estate Law
When does the Authority announce the desire to lease?
Within fifteen days of receiving the government body's request, and the Regulations set out the requirements and method of the announcement.
Does the lessor know the maximum value the Authority estimated?
No. The article provides for keeping the estimate of the maximum limit for the expected total value confidential.
Who examines the offers to lease real estate to the government body?
Committees formed in the government body; the financial controller and a member with experience and specialization must be members of the offer-examination committee.
More articles on Lease Request and Offer Procedures
- Article 7
The article requires a government body wishing to lease real estate to submit its request to the Authority through the portal, unless technically impossible, under the conditions and procedures set by the Regulations.
على الجهة الحكومية الراغبة في استئجار عقار التقدم بطلب بذلك إلى الهيئة عبر البوابة -ما لم يتعذر ذلك من الناحية الفنية- وفقاً للشروط والإجراءات التي تحددها اللائ
- Article 23
The procedures provided in the State Leasing of Real Estate Law and its regulations may be taken electronically, as set by the regulations.
يجوز أن تُتخذ الإجراءات المنصوص عليها في النظام واللائحة إلكترونيًّا، 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.