Law of State Leasing of Real Estate

Purpose and scope

• Governs the leasing of real estate by government bodies according to their needs and to control its cost (Article 2); each body must set and publish an annual leasing plan (Article 3).

Key rules, rights and obligations

• A government body may lease only when there is a pressing need and with the authority's approval, and only if neither it nor the authority has an unused property that meets the need (Article 4).
• The property must be free of structural defects, fully licensed, free of violations or disputes, and not owned by staff of the body or their relatives up to the third degree (Article 6).
• The authority advertises the requirement on the portal within fifteen days of the request, after studying market prices (Article 8).
• A lease may not exceed five years, renewable for the same, and with the authority's approval may reach twenty-five years (Article 10).
• The landlord must repair structural defects at its own cost, otherwise the body may repair them and deduct the cost from the rent (Article 22).

Violations, penalties and common problems

• The body may end the lease early in cases including structural defects, danger in the surroundings, force majeure, and proven improper leasing for a reason attributable to the landlord (Article 13).
• The body does not compensate for damage from structural defects or normal use, but does for abnormal use (Article 14).
• If the landlord repairs or alters the property before damage is assessed, the right to compensation is lost (Article 18).

Procedures and key deadlines

• The landlord is given at least fifteen days' notice to take back the property; if they fail to attend, the keys are handed to the governorate and the body's liability ends (Article 16).
• A committee assesses damage and compensation within fifteen days of vacating, or a joint committee with the authority within thirty days above the set threshold (Article 17).
• The landlord is told the compensation amount within fifteen days of assessment and may complain if they do not accept it (Article 19).

An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.