Long Term Land Lease Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Long Term Land Lease Agreement

"I need a Long Term Land Lease Agreement for a 10,000 square meter industrial plot in Dammam Industrial City, Saudi Arabia, where we plan to build a manufacturing facility, with the lease commencing on March 1, 2025, and including specific provisions for phased development and environmental compliance."

Document background
The Long Term Land Lease Agreement is a crucial document used in Saudi Arabia for establishing extended leasehold interests in land, typically for periods of 10 years or more. It is particularly relevant for major development projects, commercial ventures, and foreign investments in the Kingdom. The agreement must comply with Saudi Arabian law, including both civil law requirements and Shariah principles, while addressing practical commercial needs. This document type has gained increasing importance with Saudi Arabia's Vision 2030 initiative, which promotes private sector investment and economic diversification. The agreement covers comprehensive aspects of the lease relationship, including development rights, permitted uses, rent mechanisms, and compliance with local regulations. It is essential for projects requiring significant capital investment where freehold ownership is not possible or desired.
Suggested Sections

1. Parties: Identification of the Lessor and Lessee with full legal names, addresses, and registration details

2. Background: Context of the lease arrangement and brief description of the property

3. Definitions and Interpretation: Definitions of key terms and interpretation rules

4. Demise and Term: Formal grant of lease, duration, and commencement date

5. Rent and Payment Terms: Rent amount, payment schedule, method of payment, and review mechanisms

6. Security Deposit: Amount, payment terms, and conditions for return of security deposit

7. Permitted Use: Specified allowed uses of the property under Shariah and Saudi law

8. Lessee's Covenants: Obligations of the lessee including maintenance, repairs, and compliance with laws

9. Lessor's Covenants: Obligations of the lessor including quiet enjoyment and structural repairs

10. Insurance: Required insurance coverage and responsibilities

11. Assignment and Subletting: Restrictions and conditions for transfer of lease rights

12. Termination: Grounds for termination and procedures

13. Handback: Conditions and procedures for returning the property

14. Notices: Methods and addresses for formal communications

15. Governing Law and Dispute Resolution: Application of Saudi law and dispute resolution mechanisms

16. Force Majeure: Events beyond parties' control and their consequences

17. Entire Agreement: Integration clause and relationship to other documents

Optional Sections

1. Development Obligations: Used when the lease requires the lessee to develop the land, including construction milestones and specifications

2. Environmental Provisions: Required for environmentally sensitive areas or when specific environmental obligations exist

3. Religious/Cultural Requirements: Specific provisions relating to Islamic requirements or cultural sensitivities, particularly relevant for certain locations

4. Government Approvals: Required when specific permits or licenses are needed for the intended use

5. Utilities and Services: Detailed provisions for utility connections and services when relevant to the property

6. Pre-emption Rights: Rights of first refusal for purchase if applicable

7. Step-in Rights: Required for financiers' protection in development projects

8. Zakat Provisions: Required when specific arrangements for Islamic tax need to be addressed

Suggested Schedules

1. Property Description: Detailed description of the land including boundaries, coordinates, and official title information

2. Plan: Official surveyed plan of the property

3. Rent Schedule: Detailed breakdown of rent payments and escalation formulae

4. Permitted Use Details: Specific details of permitted activities and restrictions

5. Development Schedule: Timeline and specifications for any required development works

6. Form of Bank Guarantee: Template for required security deposits or guarantees

7. Handback Requirements: Detailed specifications for property condition upon lease end

8. Required Insurances: Detailed list of required insurance coverage

9. Service Charges: Breakdown of service charges and calculation methodology

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

Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Industrial Development

Commercial Property

Retail

Logistics

Manufacturing

Agriculture

Tourism and Hospitality

Healthcare

Education

Religious Institutions

Energy and Utilities

Relevant Teams

Legal

Real Estate

Property Management

Finance

Operations

Compliance

Project Development

Commercial

Risk Management

Facilities Management

Islamic Banking

Corporate Strategy

Relevant Roles

Chief Executive Officer

Real Estate Director

Legal Counsel

Property Manager

Development Director

Investment Manager

Facilities Manager

Commercial Director

Finance Director

Operations Manager

Compliance Officer

Project Manager

Land Acquisition Manager

Asset Manager

Risk Manager

Islamic Finance Specialist

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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