The General Authority for State Properties proposed a draft set of regulations to organize the allocation and recovery of state properties, applicable to all entities requesting allocation and the entities to which the property is allocated, provided that the allocation is done by placing any of the state properties at the disposal of the entity to which it is allocated for its exploitation or benefit.

The draft regulations proposed by the Authority stipulate that state properties may 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 are issued.

The regulations indicated that a permanent committee would be formed within the Authority by a decision of the Governor, chaired by the Authority, with membership including representatives from the Ministries of Finance, Municipalities and Housing, Environment, Water and Agriculture, Energy, Industry and Mineral Resources, and the Government Spending and Projects Efficiency Authority. The committee would be responsible for considering all matters related to the allocation and recovery of state properties, and submitting a recommendation to the Governor.

The committee may invite whomever it deems appropriate to attend its meetings, and invite a representative of the government entity requesting the allocation to discuss it when necessary, without them having the right to vote or the right to access any confidential information except to the extent that it achieves the purpose of their attendance.

Electronic portal linked to data

According to the regulations, the Authority shall establish an electronic portal for the allocation and recovery of state properties, linked to the state properties databases, to unify the source for receiving applications to ensure that they are not duplicated, and to preserve, update and integrate the data.

The entity requesting the allocation is obligated to develop a plan – in coordination with the Authority – to estimate its future real estate needs for a period of three fiscal years. The plan must include: the region, city, or governorate in which the allocation is to be made, the type of property, its specifications, the purpose of the property, information about the government entity’s employees, such as their numbers, levels, job structure, and any other data requested by the Authority.

The state property whose allocation has been cancelled is recovered by virtue of a report approved by the Authority, signed by a representative of the Authority, which includes its location, and is supported by internal and external photographs.

Preserving and utilizing the property

The Authority, in accordance with the regulations, obligated the entity to which it was allocated to maintain the property, use it for the purpose for which it was allocated, not make any structural modification to the property except after the Authority’s approval, bear all risks that the property may be exposed to during the allocation period, and commit to not building except after obtaining a copy of the deed, completing the licenses, and conducting the studies.

The entity requesting the allocation must submit the allocation request through the portal, attaching a brief report on the targeted activity, estimates of employees, beneficiaries of the activity, the initial plan of the project elements, the required area, and a statement of other state properties allocated to the same entity, in the same city or governorate. If 60 days have passed since the request was returned to the entity requesting the allocation for correction or completion of documents, without a response with the correction or the required data, the request shall be considered as if it never existed.

The Authority may allocate state property to more than one government entity. Property is considered shared if they are surrounded by one wall, or are grouped together in one building, or share public services such as electricity, water, and sewage, or share in operation, maintenance, cleaning, and security guard contracts.

The Authority shall supervise the joint properties, and the Authority may, in order to achieve a temporary public interest, allocate a property or part of it to another entity for a period not exceeding three years from the date of issuance of the decision.

Allocation according to the needs plan

The regulations stressed that no state property should be allocated to entities except in accordance with a needs assessment plan, with the condition that the entity requesting the allocation does not have an unutilized property that meets its needs, and that the area of ​​the property to be allocated is consistent with the standards adopted by the Authority in coordination with the relevant regulatory bodies, and within the limits of the needs of the entity requesting the allocation.

The Authority may allocate the property to the entity requesting allocation without being bound by the plan in the following cases: if the government entity was established after the start of the fiscal year, and if circumstances arose for the entity that were not expected when the plan was submitted and approved, after the Authority’s approval, and in the case of temporary allocation of properties, or any other case determined by the Authority.

The state property to be allocated must be in accordance with the approved city plans, be vacant and not exploited by the entity to which it is allocated, have no existing dispute, be free of third-party rights, and no part of the land shall be allocated except after it has been planned. If it has not been planned, a land division plan shall be prepared for it. It is also required for the allocation of buildings that they be free of structural defects.

Evaluation and value of the land and building

Before allocating real estate, the Authority ensures that the property has been appraised by a qualified appraiser. If no appraisal exists, the Authority appraises the real estate before allocating it. The appraisal includes determining the value of the land and the value of the building separately, and this is included in the allocation decision. The Authority notifies the Ministry of Finance of the appraisal report. The Authority re-appraises the real estate if there are substantial indicators of a decline in its value. The allocated property is handed over in accordance with a report approved by the Authority, signed by a representative of the Authority and the entity to which it is allocated, and supported by internal and external photographs.

It stipulated that if the entity allocated the property wishes to dispense with it, it must notify the Authority within a period of no less than six months, attaching a copy of the title deed, an approved survey map, and a detailed technical report supported by internal and external photographs showing the location of the building, its structural, architectural, electrical and mechanical condition, building areas and fence lengths, in addition to a financial clearance for the obligations related to the property, such as electricity and water.

The regulations stipulate that the property must be returned to the Authority if the project is not started within three years of receipt, or if an excuse is provided explaining the reason for the delay in utilizing the property. The regulations also stipulate the obligation to return the excess of the allocated area after the project is completed, and to submit an annual report to the Authority that includes proof of the property's condition, any modifications made to it, the areas utilized, and the nature of the property's utilization activity.

Protecting integrity and combating corruption

Legal advisor and lawyer Obaid Al-Ayafi confirmed that the regulations for organizing the allocation and recovery of state properties apply to all entities requesting allocation if approved. They aim to establish the necessary procedures to prove state ownership of all its properties, and to develop an integrated database for state properties, including recording all changes and transactions that occur to the properties.

He explained that these rules protect integrity, promote the principle of transparency, and combat financial and administrative corruption in all its forms, manifestations, and methods.

Al-Ayafi explained that the Authority undertakes all tasks and responsibilities related to state real estate affairs and the disposal of state real estate, including investment, allocation, leasing, and meeting the needs of government agencies for land, buildings, and other types of disposal.

He stressed that this comes in accordance with the orders, regulations and instructions regulating this, and this does not affect the Authority’s ability to meet the needs of government agencies for those properties.

Establishing state ownership of its properties

Lawyer Al-Ayafi said: “The tasks of the General Authority for State Properties include setting general policies related to state property affairs, and the plans and programs necessary for their implementation. It is also among its tasks to set the necessary procedures to establish state ownership of all its properties, and to issue deeds for state properties in the name of state properties.”.

He explained that one of the most important tasks of the Authority is to develop mechanisms that ensure integration and coordination between the government agencies concerned with state real estate affairs, enabling them to carry out the tasks assigned to them, resolve any disputes between them, monitor the application of the regulations, rules and instructions related to state real estate affairs, and preserve the original deeds and ownership documents of state real estate.