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Saudi work permits now linked to house rent contracts
| Published: | 9 Aug at 6 PM |
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Issuance or renewal of expats’ work permits In Saudi Arabia is now linked with the authentication of rental contracts.
The publishing of the new rule is a consequence of implementation by Saudi’s Council of Ministers’ February 2017 decision not to allow the issuance of work permits to expats without authenticated, registered property rental contracts. Final implementation is due next month, and an awareness campaign will be launched by the ministries involved to ensure the linking process is successful.
All rental contracts will need to be authenticated and registered in the Ejar network, with already recruited middlemen carrying out authentications. The move is aimed at protecting tenants’, landlords’ and middlemen’s rights by improving impartiality, trust and transparency, and is part of a push by the Ministry of Housing to find sustainable solutions for housing market challenges.
In February this year, the Ejar programme was launched in order to provide an electronic network offering rental services and registration of commitments between real estate middlemen, tenants and landlords. Payment of rents charged monthly, quarterly and annually will also be available, thus eliminating cash payments across the sector.
Expat comments are highlighting significant gaps in Ejar’s provisions, including problems when two persons are sharing an apartment registered in a single renter’s name. Shared flat occupied by several expatriates are another issue, as are expats living in accommodation provided by their employer. Monthly rentals of furnished apartments are also mentioned, as are those renting on already illegal sub-leases.
The publishing of the new rule is a consequence of implementation by Saudi’s Council of Ministers’ February 2017 decision not to allow the issuance of work permits to expats without authenticated, registered property rental contracts. Final implementation is due next month, and an awareness campaign will be launched by the ministries involved to ensure the linking process is successful.
All rental contracts will need to be authenticated and registered in the Ejar network, with already recruited middlemen carrying out authentications. The move is aimed at protecting tenants’, landlords’ and middlemen’s rights by improving impartiality, trust and transparency, and is part of a push by the Ministry of Housing to find sustainable solutions for housing market challenges.
In February this year, the Ejar programme was launched in order to provide an electronic network offering rental services and registration of commitments between real estate middlemen, tenants and landlords. Payment of rents charged monthly, quarterly and annually will also be available, thus eliminating cash payments across the sector.
Expat comments are highlighting significant gaps in Ejar’s provisions, including problems when two persons are sharing an apartment registered in a single renter’s name. Shared flat occupied by several expatriates are another issue, as are expats living in accommodation provided by their employer. Monthly rentals of furnished apartments are also mentioned, as are those renting on already illegal sub-leases.
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