Proposal for Regulations on State Ownership of Properties Abroad

The General Authority for State Real Estate has proposed regulations on state ownership of properties outside the Kingdom of Saudi Arabia for public consultation on the Istishari platform from December 29, 2024, to January 13, 2025.

The project aims to regulate the process of government entities owning and disposing of properties outside the Kingdom.

The project stipulates that government entities, in coordination with the General Authority for State Real Estate and the Ministry of Foreign Affairs, must develop a plan for their property needs outside the Kingdom before the start of each fiscal year, according to the plan model approved by the Authority. The plan must include the following data:

1. The country, region, or city where the property is to be acquired.

2. The type and specifications of the property.

3. The purpose of the property.

4. Information about the property users from the government entity, such as their numbers, levels, and organizational structure.

5. Any other data requested by the Authority.

The development of the plan does not entail any obligations on the Authority, the Ministry of Foreign Affairs, or the government entity.

After the Authority's preliminary approval of the acquisition request, the government entity must provide offers from marketing, brokerage, and real estate expertise companies within 60 days, with no fewer than three offers within the financial allocations of the government entity. The government entity may, exceptionally, submit only one offer with justifications. The Authority may provide additional or alternative offers to those submitted by the government entity and may seek the assistance of experts and specialists from outside its staff. The Authority will approve suitable offers within 15 working days from the date of receipt of the offers, with the possibility of extending this period for a similar duration.

The government entity must provide the Authority with a report on the property's condition upon receipt and annual reports detailing the property's condition and whether it is still needed, according to the prepared model. The government entity must facilitate the work of the Authority's employee assigned to conduct periodic visits to foreign properties and provide access to the entire property and its facilities, as well as any reports or documents related to the property's ownership, operation, or use.

The government entity must provide the Authority with a statement of unused properties outside the Kingdom and the necessary technical reports as soon as they are no longer needed. The properties will remain under the government entity's custody until the Authority decides on their sale or reallocation. The Authority will study the properties and verify that other government entities in the host country do not need them. The Authority will refer any sale requests, along with its recommendations, to the Foreign Properties Committee for consideration of their sale, investment, or exchange.

The proceeds from the sale of properties will be deposited into a current account at the Ministry of Finance and allocated to meet the real estate needs of government entities abroad according to the recommendations of the Foreign Properties Committee.