Commercial Lease Contract Template for Saudi Arabia

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Key Requirements PROMPT example:

Commercial Lease Contract

"I need a Commercial Lease Contract for a retail space in Riyadh's King Abdullah Financial District, starting March 1, 2025, with specific provisions for 24/7 operation and installation of specialized security systems for a high-end jewelry store."

Document background
The Commercial Lease Contract is a fundamental document used in Saudi Arabia for formalizing commercial property rental arrangements between landlords and tenants. This document is essential for businesses seeking to establish operations in Saudi Arabia and requires careful consideration of local legal requirements, including compliance with both Sharia principles and modern commercial regulations. The contract addresses crucial aspects such as property rights, obligations, payment terms, and usage conditions, while ensuring alignment with Saudi Arabia's commercial property laws and regulations. It's particularly important given the recent reforms in Saudi Arabia's real estate sector and the implementation of new regulatory frameworks under Vision 2030.
Suggested Sections

1. Parties: Identification of the landlord and tenant, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the lease agreement and brief description of the property and intended commercial use

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Description: Detailed description of the leased premises, including location, size, and boundaries

5. Lease Term: Duration of the lease, commencement date, and expiry date

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and payment methods

7. Permitted Use: Specified commercial activities allowed in the premises

8. Maintenance and Repairs: Responsibilities of both parties regarding property maintenance and repairs

9. Utilities and Services: Provisions regarding utility connections, payments, and service responsibilities

10. Insurance Requirements: Required insurance coverage for both parties

11. Alterations and Improvements: Rules regarding modifications to the premises

12. Assignment and Subletting: Conditions under which the tenant may assign or sublet the premises

13. Termination: Conditions and procedures for early termination

14. Default and Remedies: Events of default and available remedies for both parties

15. Governing Law and Jurisdiction: Confirmation of Saudi law application and dispute resolution mechanisms

16. Notices: Methods and addresses for official communications between parties

17. Execution: Signature blocks and execution requirements

Optional Sections

1. Force Majeure: Provisions for unforeseen circumstances preventing contract performance

2. Parking: Specific provisions regarding parking spaces if applicable to the property

3. Common Areas: Rules and cost sharing for common areas in multi-tenant buildings

4. Signage Rights: Provisions regarding external and internal signage installation

5. Environmental Compliance: Special environmental requirements for specific industries

6. Operating Hours: Restrictions or requirements regarding business hours

7. Security Provisions: Additional security requirements for high-value or sensitive properties

8. Fit-out Period: Terms for initial renovation period before lease commencement

9. Option to Renew: Terms for lease renewal if offered

10. Right of First Refusal: Tenant's rights regarding adjacent space or property purchase

Suggested Schedules

1. Schedule 1 - Floor Plans: Detailed plans showing the leased area and measurements

2. Schedule 2 - Property Condition Report: Detailed assessment of property condition at lease commencement

3. Schedule 3 - Rent Payment Schedule: Detailed breakdown of rent payments and escalations

4. Schedule 4 - Building Rules and Regulations: Specific rules governing the use of the building

5. Schedule 5 - Maintenance Schedule: Detailed breakdown of maintenance responsibilities

6. Schedule 6 - Permitted Alterations: Pre-approved alterations or improvements

7. Schedule 7 - Service Charges: Breakdown of service charges and calculation method

8. Appendix A - Required Permits and Licenses: List of necessary governmental permits for operation

9. Appendix B - Insurance Requirements: Detailed insurance specifications and coverage requirements

10. Appendix C - Handover Protocol: Procedures and checklist for property handover

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Clauses
Relevant Industries

Retail

Office Space

Industrial

Warehousing

Hospitality

Healthcare

Education

Technology

Manufacturing

Professional Services

Financial Services

Food and Beverage

Entertainment

Logistics

Relevant Teams

Legal

Real Estate

Facilities Management

Operations

Finance

Compliance

Risk Management

Property Management

Business Development

Administrative

Procurement

Relevant Roles

Real Estate Manager

Facilities Manager

Property Manager

Legal Counsel

Commercial Director

Operations Manager

Chief Financial Officer

Business Development Manager

Compliance Officer

Risk Manager

Asset Manager

Leasing Manager

Contract Administrator

General Manager

Chief Executive Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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