Saudi Arabia Releases New Uniform Rental Contract

Published June 11th, 2017 - 10:35 GMT
The new model protects the rights of tenants and landlords by having both parties sign a rental agreement via the Saudi "Ijar" network. (AFP)
The new model protects the rights of tenants and landlords by having both parties sign a rental agreement via the Saudi "Ijar" network. (AFP)

The Saudi Ministry of Housing, represented by its electronic Ijar system, released the model of uniform rental contract that was framed to protect the rights of landlords, tenants and real estate brokers, as well as to control prices. The contract consists of 16 articles that spell out the rights and duties of each party and the mechanism for payment of rent, the Saudi Press Agency reported.

Muhammad Al-Bati, general supervisor to regulate the rental sector at the ministry, said that the contract contains separate statements about rental contract, landlord, tenant or his representative, real estate firm, broker, ownership deal, rental units, schedule for payment in installments and obligations of the concerned parties. He said that the rental contract will provide a host of advantages for the real estate rental firms as well as for landlords and tenants by reducing the chances for disputes, facilitating online payment and follow up, and creation of the database of each real estate brokerage firm.

The uniform contract will be registered with the ministry’s Ijar system in accordance with the directive of  the Council of Ministers on February 13 this year. The Cabinet instructed the Ministry of Labor and Social Development to make Ijar system mandatory for the issuance and renewal of work permit for non-Saudis. The Council decided that any rental contract that was not registered with the Ijar system would not be considered as a valid one in view of its administrative and judicial aspects. The Council called on the ministries of justice and housing to draw up necessary conditions  that are to be included in the contract so as to register it with the Ijar system.

The Ijar system, which came into force in 2014, was developed by the Housing Ministry together with the ministries of commerce and interior. It is mandatory for all real estate firms to join the system that defines the rights of tenants and landlords by having both parties sign a rental agreement via the Ijar network.


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