Riyadh, Saudi Arabia – The State Properties General Authority - SPGA has launched a new initiative to regulate the ownership and management of government properties outside of Saudi Arabia. The draft regulations were made available for public consultation from December 29, 2024, to January 13, 2025.

The new regulations aim to streamline the process of government property acquisition and disposal abroad. Under the proposed rules, government agencies must submit an annual plan outlining their real estate needs outside the Kingdom. This plan, which must adhere to a SPGA-approved template, should include details such as:

Location: The specific country, region, or city where the property is to be acquired.
Property Type: The type of property and its specifications.
Purpose: The intended use of the property.
Occupants: Information about the government employees who will use the property, including their number, roles, and hierarchical structure.
Additional Information: Any other details requested by SPGA.

The regulations also outline a process for obtaining approval for property acquisitions. Once a government agency receives initial approval from SPGA, it must obtain at least three competitive bids from real estate companies within 60 days. However, under exceptional circumstances, the agency may submit a single bid with a detailed justification. SPGA has the authority to seek additional bids or alternatives and will issue its approval within 15 working days.

Government agencies are required to provide the SPGA with a detailed report on the condition of the property upon acquisition and annual updates on its status and the continued need for it. SPGA will conduct periodic inspections of the properties and may request additional documents related to ownership, operation, or utilization.

The regulations also address the disposal of government properties that are no longer needed. Agencies must report any unused properties to SPGA, along with necessary technical reports. SPGA will assess the properties and determine if they are needed by other government agencies. If not, the properties will be referred to the Foreign Real Estate Committee for sale, investment, or exchange.

Proceeds from the sale of government properties will be deposited into a special account at the Ministry of Finance and allocated to fund the real estate needs of government agencies as recommended by the Foreign Real Estate Committee.

These new regulations are expected to enhance transparency and efficiency in the management of government properties abroad and ensure that they are utilized in the most effective and cost-effective manner.