Rules set for gov’t entities leasing properties outside Saudi Arabia

Saudi Arabia set 18 rules governing lease of properties by government entities outside the Kingdom, according to Umm Al-Qura official gazette.

Under these rules, no government entity may be allowed to lease a property outside the Kingdom unless there is a dire need and after obtaining the approval of the Real Estate General Authority (REGA).

Leased properties should be free of construction defects.

As an exception to Article (6), a government entity may directly lease real estate within the limits of its financial allocations in the following cases:

1- Temporary premises for the mission or its affiliated technical offices, or housing for heads of missions or employees.

2- Permanent premises for mission offices or affiliated technical offices, provided that the value of each contract does not exceed $300,000 annually.

3- Permanent housing for the head of the mission or employees, or for support services such as warehouses, parking lots, etc., provided that the value of each contract does not exceed $50,000 annually.