Saudi Arabia’s Minister of Housing, HE Majid bin Abdullah Al-Hogail, along with the kingdom’s Minister of Trade and Investment of Municipal and Rural Affairs, Majid bin Abdullah Al-Qasabi, have launched a unified, mandatory ‘lease contract’ for the commercial real estate sector, which requires all residential and commercial rental contracts to be registered in the online rental services network.
The initiative will involve the activation of a link between the Ministry of Housing’s ‘Sakani’ programme and the ‘Baladi’ portal, which will compel stakeholders such as real estate brokerage firms to enter into rental contracts for the commercial sector through a rental network.
The move will also ensure that commercial rental contracts documented in the network will be able to more easily renew municipal licenses.
The initial version of the service documented real estate leases for the commercial sector in an “optional phase”, and took into account the views of the parties involved in the lease process, including real estate brokers, landlords, and tenants.
The latest lease contract law, which has been made compulsory, will cover a wide segment of the real estate sector, commercial towers, commercial complexes and buildings, as well as rental units such as trade fairs, warehouses, stalls, shops, offices, and others.
The move is in line with the implementation of the Cabinet Resolution No. 405 and the kingdom’s Vision 2030, according to the state-run Saudi Press Agency.
In addition, the initiative will also aim to organise the commercial real estate sector; stimulate investment in the real estate sector; move the wheel of urban development; and provide interactive services, transforming the rental process into a distinct customer experience, and striking a balance between supply and demand.