Saudi Gazette report



RIYADH – In a major initiative to streamline the Kingdom’s private real estate rental sector, the Ministry of Housing launched the National Electronic Network for Rental Services (Ijar).



The first Ijar electronic payment was done through Basma Real Estate Company in Riyadh city, said Muhammad Al-Zamie, deputy minister of housing for planning and studies. The new service will give transparency to the real estate rental transactions and will safeguard the rights of all parties.



Speaking to the Saudi Press Agency, Al-Zamie said that Ijar is aimed at streamlining the electronic payment of rent to protect the rights of both tenants and landlords as well as the real estate brokers. A unified and documented rental contract, agreed upon by all the concerned parties, would come into force.



“The service enables the tenant to make prompt payment and its documentation while property owner would benefit from quick receipt of the amount in accordance with the provisions of the rent contract,” he said. With the new service, Al-Zamie said, Saudi and expatriate tenants would have a broad spectrum and multiple options in choosing a residential apartment after having access to all its specifications such as the location, space, available services etc.



“Ijar will supply a data base with comprehensive and precise statistical information about the rental sector in the Kingdom. Apart from spurring the growth of the real estate sector with increased role for real estate investors, developers and service provides, Ijar would also be instrumental for the ministry and other concerned agencies to monitor and follow up closely the market so as to protect the rights of all parties involved,” he added.



According to the new service, tenants and landlords have to sign a rental agreement via Ijar, specifying all the details, including the amount of rent, period of payment etc. It allows licensed real estate brokers who are members of the network to provide rental brokerage services, as well as to verify tenants’ backgrounds and their credit standing.



The Ministry of Housing developed the network in coordination with a number of government departments and agencies, including ministries of interior, commerce and industry, Saudi Arabian Monetary Agency, and the Communications and Information Technology Commission (CITC).