Al-Hogail and Al-Qasabi Launch "Ejar" Contract for the Commercial Sector

His Excellency the Minister of Housing, Professor Majed bin Abdullah Al-Hogail, and His Excellency the Minister of Commerce and Investment, and Municipal and Rural Affairs, Dr. Majed bin Abdullah Al-Qasabi, inaugurated today at the Ministry of Municipal Affairs headquarters the unified rental contract for the commercial real estate sector. This marks the contract becoming mandatory in implementation of Cabinet Decision No. 405, which requires real estate brokers to register all residential and commercial rental contracts in the Electronic Rental Services Network.

This launch follows the earlier introduction of the initial version of the commercial real estate rental contract authentication (optional phase) by the Ejar program, and comes after incorporating feedback from all parties involved in the rental process, including real estate brokers, landlords, and tenants, through the available communication channels during the initial launch period. Several enhancements and features were added to improve the service, contributing to its development. The unified “Ejar” contract for the commercial sector, which entered into force on Sunday, February 23, 2020, is distinguished by its flexibility and its suitability to the nature and requirements of commercial activities. It also covers a wide range of commercial real estate and unit types, including commercial properties such as towers, commercial complexes, and buildings, as well as rental units such as showrooms, warehouses, kiosks, shops, offices, and more.

The General Supervisor of Real Estate Regulation, Professor Nahar bin Hasan Al-Sheikh, affirmed that the Ejar program is one of the most influential regulatory programs in the real estate sector, playing a pivotal role in organizing the sector and supporting national economic development. He noted that this launch reflects productive cooperation between the relevant government entities, aligning with the “Housing Program,” one of the Kingdom’s Vision 2030 initiatives, which integrates the efforts of 16 government entities.

Al-Sheikh further explained that through its various initiatives, the Ministry of Housing aims to provide an organized real estate sector. Launching the unified “Ejar” contract for the commercial sector represents a significant service to regulate commercial real estate, stimulate investment, advance urban development, offer interactive and value-added services, transform the rental process into an exceptional customer experience, and achieve equilibrium between supply and demand.

Commercial rental contracts can be established by activating numerous clauses and defining the obligations of each party in a simplified and efficient manner, while maintaining the contract’s status as an executive bond enforceable by judicial authorities. Additional advantages of commercial rental contracts—available through over 14,000 real estate brokerage establishments registered in the Ejar network across the Kingdom—include the ability to register conditional contracts that take effect upon fulfillment of agreed-upon conditions, modify commercial activity after contract execution, grant tenants a variety of permissions, offer flexible and scheduled payment plans, and enable the drafting of customized, non-standard commercial contracts with negotiable terms and conditions.

It is noteworthy that the Electronic Rental Services Network continues to enhance its services and features to serve all beneficiaries in the residential and commercial rental sectors. During the optional phase, the number of authenticated commercial rental contracts exceeded 35,000. Since the beginning of 2020, the network has seen a daily average of more than 1,700 authenticated residential rental contracts. The program continues to encourage all stakeholders in both residential and commercial real estate to authenticate contracts, especially in light of its gradual integration with government and private service entities that require proof of residence for the provision of services such as education, healthcare, and more.