The Board of Directors of the General Authority for State Properties approved the regulations for allocating and recovering state properties, provided that the entities to which properties are allocated are ministries and other government agencies that are funded from the general budget or entities for which orders or decisions have been issued authorizing the allocation of properties to them. The Authority may allocate a property to more than one government entity.

The regulations aim to organize matters related to the allocation and recovery of state properties without prejudice to the relevant regulations, orders, decisions and agreements. They apply to all entities requesting allocation and entities to which allocations are made. The provisions of the regulations apply to all allocation processes, except for those for which a royal order has been issued, which shall be implemented directly by completing the procedures. State properties shall not be allocated to non-governmental entities except with the approval of the Prime Minister, with the exception of entities for which special orders or decisions have been issued.

The regulations stipulate that the entity requesting allocation must coordinate with the Authority to develop a plan to estimate its future real estate needs for a three-year period. No state-owned property may be allocated to any entity except in accordance with this needs assessment plan, provided that the requesting entity does not already own an unused property that meets its needs. The area of ​​the property to be allocated must conform to the standards adopted by the Authority and be within the scope of the requesting entity's needs. The Authority may allocate property to the requesting entity without adhering to the plan if the government entity is established after the start of the fiscal year, or if unforeseen circumstances arise for the entity that were not anticipated when the plan was submitted and approved.

The state property to be allocated must be used in accordance with the approved city plans, and it must be vacant or not exploited by the entity to which it is allocated, and there must be no existing dispute over it at the time of allocation, and it must be free of third-party rights. No part of the land to be allocated shall be allocated except after it has been planned. If it has not been planned, then a land division plan shall be prepared for it, taking into account the technical controls and requirements, design policies, and approved planning standards.

Buildings are to be allocated if they are free of structural defects and meet the necessary licensing requirements from the competent authorities. Before allocating real estate, the Authority ensures that the property to be allocated has been appraised by a qualified appraiser with recognized and relevant professional qualifications and recent experience in the properties being appraised.

The regulations stipulate that the Authority may allocate state-owned property to more than one government entity. State-owned property allocated to more than one government entity is considered shared if it is surrounded by a single fence, housed in a single building, or shares public services such as electricity, water, and sewage, or if it shares operation, maintenance, cleaning, and security contracts. The Authority oversees shared properties according to the shared buildings policy adopted by the Authority in agreement with the Ministry of Finance and the Government Spending Efficiency and Projects Authority.

When will the property be returned?

The Authority, in the interest of a temporary public benefit, may allocate the use of a state-owned property, or part thereof, to another entity for a period not exceeding three years from the date of the allocation decision. If the entity to which the property was allocated wishes to relinquish it, it must notify the Authority through the portal within a period of no less than six months from the date of relinquishment. The regulations stipulate that the committee shall submit a recommendation to the governor to reclaim the state-owned property, or part thereof, if the entity to which the property was allocated relinquishes it, or part thereof, or if the purpose of the allocated property, or part thereof, has been fulfilled, or if the efficiency of the utilization of the property, or part thereof, has decreased, or if the property, or part thereof, is used for a purpose other than that for which it was allocated, or if the property is left vacant for a period exceeding six months from the date of receipt, unless the vacancy is due to a reason beyond the control of the entity to which the property was allocated. The regulations also stipulate that the property may be reclaimed if the building of the state-owned property becomes unusable, according to a report by an accredited technical expert.

No construction without a permit

The regulations stipulate that the entity allocated the property must preserve the state property allocated to it, utilize it optimally for its intended purpose, and operate it in accordance with the National Guide for Asset and Facilities Management approved by the Government Spending and Projects Efficiency Authority, and not make any structural modifications to the state property allocated to it except after obtaining the Authority’s approval.

It bears all risks that the property may be exposed to during the allocation period, and commits to not building on the property allocated to it except after obtaining a copy of the deed, completing the necessary licenses, and conducting the necessary studies.

It must also commit to returning the property to the Authority if the project is not started within three years from the date of receipt, or provide an excuse acceptable to the Authority, explaining the reason for the delay in benefiting from the property, and commit to returning the surplus of the allocated area after the project is completed.