The Real Estate General Authority (REGA) in Saudi Arabia announces that the state’s real estate rental system and its executive regulations are to enter into force, starting next Thursday, corresponding to February 2nd, 2023, Invest-Gate reports.
This comes after the approval of the system the passing of 180 days as of the date of its publication in Umm Al-Qura newspaper, as well as the approval and publication of its executive regulations by REGA’s board.
The authority indicates that the new system and its executive regulations replace the state’s property leasing and eviction system and its executive regulations.
The new system aims to regulate the state’s leasing of real estate through government agencies, based on their needs, as well as rationalize the financial costs of renting, in addition to developing the exploitation of leased real estate by government agencies.
REGA notes that the system targets ministries, public authorities and institutions and the like, in addition to owners of properties or whoever has the right to lease it legally.
The new regulations provide more flexibility in determining the duration of lease contracts, allowing it to reach up to 25 years subject to the approval of REGA, or even 50 years in the case of real estate built on government lands for investment projects contracted with the authority.