State Properties Authority to transform SAR 4.5 bln rental portfolio into new govt buildings

Logo of State Properties General Authority

Saudi Arabia’s State Properties General Authority is working on transforming its rental portfolio of government-rented buildings worth more than SAR 4.5 billion into new government buildings under a “rent-to-own” system, said Deputy Governor for Investments and Business Development Fahad Mushayt.

This will be achieved through the private sector participation in building new government buildings in exchange for annual rentals for up to 20 years, Mushayt told Al-Eqtisadiah Newspaper.

He pointed out that this step contributes to high-standard buildings with optimal energy exploitation and spending efficiency.

The authority plans to launch 10 projects this year, including the Business Oasis project in Riyadh at a value of up to SAR 8 billion in partnership with the private sector. The project contains seven government headquarters, in addition to hotel, commercial and office areas with various concepts, including the concept of humanizing the city.

The 10 projects also include the judicial complexes in Jeddah, Makkah and Riyadh, grievances and public prosecution offices in Riyadh, environment and water system in Riyadh and Al Madinah.

Meanwhile, the authority has more than 20 projects to build government headquarters throughout the Kingdom.