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Riyadh Raises Efficiency of Real Estate Rental Operations to Gov’t Agencies with New Law

Saudi Capital, Riyadh (Asharq Al-Awsat)
Saudi Capital, Riyadh (Asharq Al-Awsat)
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Riyadh Raises Efficiency of Real Estate Rental Operations to Gov’t Agencies with New Law

Saudi Capital, Riyadh (Asharq Al-Awsat)
Saudi Capital, Riyadh (Asharq Al-Awsat)

Saudi Arabia’s State Properties General Authority said that the state’s real estate rental law and its implementing regulations will enter into force, starting next Thursday, February 2, according to a statement.

This was after approving the law and the passage of 180 days since its publication in the official Umm Al-Qura newspaper, as well as the approval of its executive regulations by the authority’s board of directors.

The authority also stated that the new law and its implementing regulations replace the State Rental and Evacuation of Real Estate Law and its implementing regulations, and aim to regulate the process of state leasing real estate through government agencies according to its needs, as well as rationalizing the financial costs of renting.

This is in addition to developing the exploitation of rented real estate by government agencies, strengthening the principles of governance, establishing the principles of transparency and efficiency in government rental of real estate, as well as unifying the authority supervising the rental process.

Furthermore, the law targets ministries, public authorities and institutions and the like, in addition to the owner of the property or whoever has the right to lease it legally.

It will also have a lot of positive effects on the investment sector in the real estate market, which will increase the contribution of the real estate sector to the Kingdom's gross domestic product.

The authority stated that the new law and the executive regulations provided more flexibility in determining the duration of lease contracts that reach five years, subject to renewal, and up to 25 years, subject to the approval of the authority. It allows a duration of 50 years for real estate built on government land that the authority contracts with investors for investment projects.

The law also authorized the government agency to complete the contract using the lease-to-own method after obtaining the approval of both the authority and the Ministry of Finance.

The articles of the law specified the mechanism for requesting government agencies to rent a property, as well as the conditions of the lease, the terms of its contract, and the mechanism for its extension, in addition to cases of compensating the landlord when evacuating the property, and the way of restricting the damages if any.

The articles also include the mechanism for handing over the property after the end of the contract, and how to handle any dispute that arises between the landlord and the renting government agency.

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World Shares Are Mixed as Tensions Escalate in Middle East

FILE PHOTO: A 3D-printed oil pump jack is placed on dollar banknotes in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D-printed oil pump jack is placed on dollar banknotes in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
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World Shares Are Mixed as Tensions Escalate in Middle East

FILE PHOTO: A 3D-printed oil pump jack is placed on dollar banknotes in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D-printed oil pump jack is placed on dollar banknotes in this illustration picture, April 14, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

World shares were mixed on Wednesday, with European benchmarks mostly higher. Hong Kong’s Hang Seng soared more than 6% while other Asian markets retreated as tensions escalated in the Middle East, The Associated Press reported.
Oil prices extended gains after Iran fired dozens of missiles into Israel, potentially raising the risk of disruptions to supplies. That news overshadowed an upbeat report showing US job openings rose unexpectedly in August as the American labor market continued to show resilience.

A debate Tuesday night between vice presidential candidates Democratic Gov. of Minnesota Tim Walz and Republican senator JD Vance likewise drew scant market attention, analysts said.
“The market’s muted reaction says it all — traders are far more focused on pressing economic concerns and geopolitical risks than on the vice presidential showdown,” Stephen Innes of SPI Asset Management said in a commentary.

Germany's DAX edged 0.1% higher to 19,232.74 and the FTSE 100 in London advanced 0.4% to 8,311.82. In Paris, the CAC 40 picked up 0.5% to 7,611.12.

The future for the S&P 500 was 0.1% lower while that for the Dow Jones Industrial Average gave up 0.2%.

Tokyo's Nikkei 225 lost 2.2% to 37,808.76. It has retreated since the ruling Liberal Democratic Party chose Shigeru Ishiba to lead the government, replacing Fumio Kishida, who stepped aside on Tuesday. Higher energy prices in Japan, which relies heavily on imported oil, gas and coal to power its industries, would add to Ishiba's burdens as he works to pep up the economy.

Hong Kong's Hang Seng roared 6.2% higher to 22,443.73, riding a wave of investor enthusiasm over recent moves by Beijing to rev up the Chinese economy with policies aimed at reviving the ailing property sector and supporting financial markets.

With Shanghai and other markets in China closed, trading crowded into Hong Kong. Hong Kong-traded shares in China Vanke, one of many real estate developers squeezed by a crackdown on borrowing that pushed the industry into a slump, jumped 10%. Longfor Holdings Group rocketed nearly 25% and appliance maker Midea surged 4.2%.

The Hong Kong benchmark is trading at its highest level since early 2023.

Australia's S&P/ASX 200 edged 0.1% lower to 8,198.20 and the Kospi in Seoul lost 1.2% to 2,561.69.

On Tuesday, US stocks retreated from their records, with the S&P 500 dropping 0.9%. The Dow dropped 0.4% and the Nasdaq composite lost 1.5%.
Israel is not a major producer of oil, but Iran is, and the potential for a wider conflict could affect other, neighboring producers of crude. The price for a barrel of benchmark US crude rose as much as 5% on Tuesday before settling 2.4% higher. Brent crude, the international standard, rallied 2.6%.
Early Wednesday, US crude was up $1.51 at $71.34 per barrel. Brent crude climbed $1.45 to $75.01 per barrel.
The all-time high that the S&P 500 set on Monday was its 43rd of the year so far. Stocks had been jumping on hopes the US economy can continue to grow despite a slowdown in the job market, as the Federal Reserve cuts interest rates to give it more juice. The Fed last month lowered its main interest rate for the first time in more than four years, and it’s indicated it will deliver more cuts through next year.
The dominant question hanging over Wall Street is whether the cuts will ultimately prove to be too little, too late after the Fed earlier kept rates at a two-decade high in hopes of braking on the economy enough to stamp out high inflation.
A discouraging report arrived Tuesday, showing US manufacturing weakened by more in September than economists expected.
Another threat to the economy could lie in a strike by dockworkers at 36 ports across the eastern United States that could snarl supply chains and drive up inflation.
The workers are asking for a labor contract that doesn’t allow automation to take their jobs, among other things. Supply chain experts say consumers won’t see an immediate impact because most retailers have stocked up on goods, moving ahead shipments of holiday gift items.