His Excellency Minister of Housing, Majed bin Abdullah Al-Huqail, praised the Council of Ministers’ approval in today’s session of several regulations related to organizing the rental sector in the Kingdom and enhancing confidence in it. He noted that this step reflects the ongoing and unlimited support and attention of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, His Royal Highness the Crown Prince, and His Royal Highness the Deputy Crown Prince – may God preserve them – toward developing and regulating the housing sector in service of both the nation and citizens.

In a press statement, His Excellency emphasized that the newly approved regulations will play a vital role in organizing the Kingdom’s rental sector, pointing out that the rental sector accounts for nearly half of the real estate market. This, he stated, makes it necessary to introduce clear regulations and controls designed to create a balanced framework for the housing and real estate sector by offering sustainable solutions to its challenges, safeguarding the rights of all parties involved in rental processes, and ensuring high levels of trust and security among stakeholders.

His Excellency further highlighted that the (Ejar) program is one of several development plans and initiatives implemented by the Ministry to regulate the Kingdom’s housing sector. It complements previously introduced initiatives such as the White Land Fees, the Developers Services Center "Itmam," and the Owners’ Union "Mullak." He added that these rental regulations align with the Ministry’s ongoing efforts to achieve leadership and citizen aspirations in line with Saudi Vision 2030 and the National Transformation Program 2020. The Ministry’s goals include strengthening housing supply, enabling demand, creating a balanced and sustainable housing environment, improving sector performance, and increasing the sector’s contribution to GDP.

The General Supervisor of Rental Sector Regulation, Engineer Mohammed bin Saleh Al-Bati, explained that the Council of Ministers’ new regulations are of paramount importance to the rental sector, as they reduce potential disputes by ensuring the reliability and integrity of rental contracts. This measure, he added, will prevent courts from being burdened with rental disputes stemming from basic errors such as inaccurate tenant and landlord data, invalid property title deeds, or issues with agencies and sharia documentation. He noted that a significant percentage of real estate cases are rental-related.

Among the benefits offered by  He further stated: “The new regulations stipulate that any rental contract not registered in the electronic network is not legally valid or enforceable, either administratively or judicially. The Ministries of Justice and Housing will set the requirements and conditions for contracts to be considered registered in the network, including provisions for cases where one party refuses to register the contract. Furthermore, government entities that require rental contract documentation for providing services will rely on the (Ejar) network to verify contract validity. This includes public schools, which require proof of residence within their designated area for student enrollment, and proof will only be accepted through contracts registered in the network, eliminating reliance on unregistered or traditional contracts, thereby reducing the occurrence of fraudulent rental agreements.”

Al-Bati also stated that under the new regulations, having a registered rental contract in the (Ejar) network is now mandatory for issuing or renewing work permits for non-Saudis by the Ministry of Labor and Social Development. He confirmed that coordination between the Ministry of Housing and the Ministry of Labor and Social Development is underway to develop the appropriate mechanism for this requirement and to identify the specific professions involved. This cooperation, he said, will help organize housing arrangements for residents.

He added that the "Ejar" program is designed to document contracts, safeguard the rights of all parties involved in rental transactions, and create standardized rental agreements recognized as executive instruments. The program also focuses on qualifying and licensing real estate brokerage establishments, developing clear regulatory and supervisory policies, and implementing oversight procedures for their operations. These steps, he noted, will reduce the number of rental-related cases presented before the judiciary and improve efficiency in the sector.