Development Lease Agreement for Saudi Arabia

Development Lease Agreement Template for Saudi Arabia

A comprehensive legal agreement governed by Saudi Arabian law and Sharia principles that establishes the terms and conditions under which a property owner (lessor) grants development rights and a lease to a developer (lessee) for the purpose of constructing and developing a property. The agreement addresses key aspects including development obligations, construction timelines, payment terms, regulatory compliance requirements, and operational conditions, while ensuring alignment with Saudi building codes, environmental regulations, and local municipality requirements.

Your data doesn't train Genie's AI

You keep IP ownership of your information

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Download a Standard Template

4.6 / 5
4.8 / 5
Access for free
OR

Alternatively: Run an advanced review of an existing
Development Lease Agreement

Let Genie AI's market-leading legal AI identify missing terms, unusual language, compliance issues and more - in just seconds.
Upload your Doc

What is a Development Lease Agreement?

The Development Lease Agreement is a crucial document used in Saudi Arabian real estate development projects where a property owner wishes to grant both leasehold rights and development rights to a developer. This agreement type is particularly relevant for large-scale commercial, residential, or mixed-use developments in Saudi Arabia, where the developer takes on both the responsibility and risk of developing the property while maintaining a leasehold interest. The document must comply with Saudi Arabian law, including the Real Estate Law, Commercial Courts Law, and Sharia principles, while addressing crucial elements such as development obligations, construction standards, regulatory compliance, and risk allocation. It's commonly used in projects requiring significant capital investment, long-term commitment, and complex development phases, providing a framework for both the development phase and subsequent operational period.

What sections should be included in a Development Lease Agreement?

1. Parties: Identification of the Lessor and Lessee/Developer, including full legal names and registration details

2. Background: Context of the development lease, property details, and general intent of the parties

3. Definitions: Detailed definitions of terms used throughout the agreement, including technical and legal terms

4. Grant of Lease: Terms of the lease grant, including duration, purpose, and development rights

5. Development Obligations: Specific obligations of the Developer regarding construction and development of the property

6. Development Timeline: Detailed timeline for development phases, including milestones and completion dates

7. Rent and Payment Terms: Payment structure, including development phase rent and operational phase rent

8. Security and Performance Guarantees: Required guarantees, bonds, and security deposits

9. Permits and Approvals: Requirements for obtaining and maintaining necessary governmental approvals

10. Construction Standards: Required building standards, quality requirements, and compliance with Saudi Building Code

11. Environmental Compliance: Environmental obligations and compliance requirements

12. Insurance and Liability: Required insurance coverage and allocation of risks

13. Default and Termination: Events of default, remedies, and termination provisions

14. Assignment and Subletting: Rights and restrictions regarding transfer of interests

15. Dispute Resolution: Procedures for resolving disputes, including Sharia-compliant arbitration

16. Governing Law: Application of Saudi law and Sharia principles

What sections are optional to include in a Development Lease Agreement?

1. Pre-Development Phase: Used when there is a significant planning or preparation phase before construction begins

2. Financing Provisions: Required when specific financing arrangements need to be addressed

3. Government Participation: Included when government entities have specific roles or requirements

4. Force Majeure: Detailed force majeure provisions beyond standard terms

5. Operating Requirements: Included when the agreement covers operational phase requirements

6. Sustainability Requirements: Used when specific green building or sustainability standards apply

7. Community Impact: Required when development affects local communities significantly

8. Special Economic Zone Provisions: Included for developments within special economic zones

What schedules should be included in a Development Lease Agreement?

1. Property Description: Detailed legal description of the property including plans and surveys

2. Development Plans: Approved plans, drawings, and specifications for the development

3. Construction Timeline: Detailed construction schedule with milestones and deadlines

4. Payment Schedule: Detailed breakdown of all payments, including rent structure and development costs

5. Technical Specifications: Detailed technical requirements and standards for construction

6. Required Approvals: List of required permits, licenses, and approvals

7. Form of Performance Bond: Template for required performance bonds or guarantees

8. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

9. Environmental Standards: Specific environmental requirements and compliance standards

10. Handover Requirements: Specifications for property handover at different project stages

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

Jurisdiction

Saudi Arabia

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Property Development

Infrastructure

Commercial Property

Residential Development

Industrial Development

Mixed-use Development

Retail Development

Hospitality

Healthcare Facilities

Educational Facilities

Relevant Teams

Legal

Real Estate

Development

Construction

Project Management

Finance

Risk Management

Compliance

Operations

Technical Services

Environmental

Commercial

Relevant Roles

Real Estate Director

Development Manager

Project Manager

Legal Counsel

Property Manager

Construction Manager

Investment Director

Commercial Director

Chief Development Officer

Risk Manager

Contracts Manager

Compliance Officer

Technical Director

Operations Director

Finance Director

Environmental Compliance Manager

Industries
Real Estate Law (Saudi Arabia): Governs property rights, ownership, and transfer of real estate in Saudi Arabia. Essential for establishing the legal framework of the lease and development rights.
Commercial Courts Law (Royal Decree No. M/93): Provides the legal framework for commercial disputes and contract enforcement, relevant for commercial development projects.
Saudi Building Code (SBC 201): Sets standards and requirements for construction and development projects, including safety regulations and technical specifications.
Environmental Law (Royal Decree No. M/165): Regulates environmental impact and protection requirements for development projects.
Foreign Investment Law (Royal Decree No. M/1): Regulates foreign investment in real estate development and establishes requirements for foreign developers.
Municipal and Rural Affairs Law: Governs local permits, zoning requirements, and development approvals at the municipal level.
Law of Ownership and Investment of Real Estate by Non-Saudis: Specific regulations governing non-Saudi involvement in real estate development and ownership.
Sharia Law Principles: Islamic law principles that govern contract formation, financing structures, and dispute resolution in Saudi Arabia.
Capital Market Law (Royal Decree No. M/30): Relevant for financing aspects and if the development project involves public funding or securities.
Labor Law (Royal Decree No. M/51): Governs employment aspects of development projects, including Saudization requirements and worker safety.
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

Find the exact document you need

Memorandum Of Understanding Between Landowner And Developer

A Saudi Arabian law-governed preliminary agreement between landowner and developer outlining proposed property development terms and cooperation framework.

Download

Property Development Contract

A Saudi Arabian law-governed agreement establishing terms and conditions for property development projects, including rights, obligations, and compliance requirements.

Download

Business Development Contract

A Saudi Arabian law-governed agreement establishing terms and conditions for business development services, including scope, compensation, and compliance requirements.

Download

Web Developer Contract

A Saudi Arabian law-governed contract for web development services, outlining project scope, deliverables, and obligations between parties.

Download

Joint Venture Development Agreement

A Saudi Arabian law-governed agreement establishing a joint venture structure between parties for collaborative development projects, ensuring compliance with local regulations and Sharia principles.

Download

Joint Venture Agreement Real Estate Development

A Saudi Arabian law-governed agreement establishing a joint venture for real estate development projects, outlining partnership terms and regulatory compliance requirements.

Download

Developer's Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for software development services, including project scope, deliverables, and compliance requirements.

Download

Custom Software Development Contract

A Saudi Arabian law-governed agreement for custom software development, outlining development terms, IP rights, and compliance requirements.

Download

Landowner And Builder Agreement

A Saudi Arabian law-governed agreement between landowner and builder establishing terms and conditions for construction projects.

Download

Software Developer Agreement

A Saudi Arabian law-governed agreement establishing terms for software development services, defining rights, obligations, and deliverables between developers and clients.

Download

Agreement Between Developer And Landowner

A Saudi Arabian law-governed agreement between a developer and landowner establishing terms for property development, including rights, obligations, and project parameters.

Download

Freelance App Development Contract

A Saudi Arabian law-governed contract establishing terms between a client and freelance developer for app development services, including scope, deliverables, and legal protections.

Download

Developer Contract Agreement

A Saudi Arabian law-governed agreement establishing terms and conditions for software development services, compliant with local labor laws and Sharia principles.

Download

Joint Technology Development Agreement

A Saudi law-governed agreement for collaborative technology development between multiple parties, establishing rights, responsibilities, and commercialization terms.

Download

Letter Of Intent For Real Estate Development

A preliminary document under Saudi Arabian law outlining intended terms and conditions for a proposed real estate development project, setting the framework for future negotiations.

Download

Development Agreement For Redevelopment

A Saudi Arabian law-governed agreement setting out terms for property redevelopment, incorporating local regulatory requirements and Sharia compliance.

Download

Builder Developer Agreement

A Saudi Arabian law-governed agreement between developer and builder defining construction project terms, obligations, and compliance requirements.

Download

Design Development Agreement

A Saudi Arabian law-governed agreement establishing terms for design development services, including scope, deliverables, and responsibilities of parties.

Download

Development License Agreement

A legal agreement governing development and licensing arrangements in Saudi Arabia, addressing development obligations, IP rights, and compliance with Saudi law.

Download

Real Estate Development Contract

A Saudi Arabian law-governed agreement establishing terms and conditions for real estate development projects, incorporating Sharia principles and local regulations.

Download

Master Developer Agreement

A comprehensive agreement governing large-scale real estate development projects in Saudi Arabia, establishing developer rights and obligations under Saudi law and Sharia principles.

Download

Freelance Developer Contract

A Saudi Arabian law-governed contract establishing terms for freelance software development services, including scope, IP rights, and delivery requirements.

Download

Employment Contract For Software Developer

Saudi Arabian employment contract template for software developers, compliant with local labor laws and addressing technical role requirements.

Download

Business Development Partnership Agreement

A Saudi Arabian law-governed agreement establishing terms for business development partnerships, including collaboration scope, responsibilities, and commercial terms.

Download

Joint Development Agreement Between Landowner And Builder

A Sharia-compliant Saudi Arabian agreement between landowner and builder for joint property development, outlining rights, responsibilities, and profit-sharing arrangements.

Download

Film Development Agreement

A legal agreement governing film project development in Saudi Arabia, establishing creative, financial, and regulatory frameworks under Saudi law and GCAM regulations.

Download

Development Lease Agreement

A Saudi Arabian law-governed agreement between property owner and developer establishing terms for property development and lease rights, compliant with Sharia principles.

Download

Performance And Development Agreement

A Saudi Arabian law-governed agreement combining development project execution with performance requirements, ensuring compliance with local regulations and Sharia principles.

Download

Joint Research And Development Agreement

A Saudi Arabian law-governed agreement establishing terms for collaborative research and development activities between multiple parties.

Download

Development Service Agreement

A Saudi Arabian law-governed agreement setting out terms for development services, including deliverables, timelines, and commercial terms.

Download

Software Development And License Agreement

A Saudi Arabian law-governed agreement establishing terms for software development services and licensing, including development process, IP rights, and compliance with local regulations.

Download

Land Development Contract

A Saudi Arabian law-governed agreement establishing terms for land development between landowner and developer, ensuring compliance with local regulations and Shariah principles.

Download

Joint Product Development Agreement

A Saudi Arabian law-governed agreement for collaborative product development between multiple parties, addressing IP rights, development processes, and commercialization terms.

Download

Customer Development Agreement

A Saudi Arabian law-governed agreement for custom software or technology development services, establishing terms, responsibilities, and deliverables while ensuring compliance with local regulations.

Download

Technology Development Agreement

A Saudi Arabian law-governed agreement for technology development projects, addressing development terms, IP rights, and local regulatory compliance.

Download

Development Fee Agreement

A Saudi Arabian law-governed agreement establishing development services terms and fee structures for real estate and infrastructure projects.

Download

Site Development Agreement

A Saudi Arabian law-governed agreement establishing terms for site development, including development rights, obligations, and regulatory compliance requirements.

Download

Master Service Agreement Software Development

A Saudi Arabian law-governed master agreement establishing terms for ongoing software development services between a provider and client, addressing key technical, commercial, and regulatory requirements.

Download

Software Development Outsourcing Agreement

A Saudi Arabian law-governed agreement for outsourcing software development services, defining the relationship between client and developer with compliance to local regulations.

Download

Forward Funding Agreement

A Sharia-compliant agreement under Saudi Arabian law governing the forward funding arrangement between a funder and developer for real estate development projects.

Download
See more related templates

Genie’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; Genie’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

We are ISO27001 certified, so your data is secure

Organizational security:

You retain IP ownership of your documents and their information

You have full control over your data and who gets to see it

2 Docs LeftAccess Now