The Electronic Rental Services Network, affiliated with the Ministry of Housing, recorded a 40% increase during September compared to commercial rental contracts in August, with contracts nearing the mark of 20,000 commercial rental contracts during September.
Ejar program explained in its statement that the qualitative increase in the daily average for commercial contract authentication came as a direct result of the response from users in the commercial real estate rental sector, acknowledging the importance of this step as a qualitative addition in the field of rental contracting. This increase also comes in preparation for the requirement to link the issuance and renewal of municipal licenses to commercial rental contracts authenticated in the network, a mandate that took effect on 4 October 2020, corresponding to 17 Safar 1442 Hijri, as announced by the Ministry of Municipal and Rural Affairs. This implementation is made possible through electronic integration between the Electronic Rental Services Network and the “Balady” portal, in line with Cabinet Decision No. (292) which requires government entities to utilize the Ejar network when a rental contract is needed for service provision. This step enables beneficiaries to authenticate their rental contracts electronically to verify and establish their commercial locations.
The Ejar program confirmed that interaction with the commercial rental contract achieves the aspirations of sector users and their desire to benefit from the advantages provided by the commercial contract, including monthly payment, scheduling payments and their flexibility, the possibility of registering it as a conditional contract, modifying commercial activity after concluding the contract, subleasing, payment grace service, and other authorities and advantages provided by the electronic rental contract.
Among the notable advantages of the commercial rental contract is its ability to be customized and built to include a large number of clauses, define multiple obligations, and identify the obligated parties clearly and efficiently, while maintaining its legal status as a contract recognized as an executive bond by judicial authorities. The commercial rental contract has been widely praised for its flexibility and its ability to meet the specific requirements of commercial activities, accommodating a wide variety of commercial properties and units. These include towers, commercial complexes, and buildings, as well as numerous commercial rental unit types such as showrooms, warehouses, kiosks, shops, offices, and more.