The Simple Commercial Lease Agreement is a fundamental legal document used in Saudi Arabia when establishing a commercial tenancy relationship between a property owner and a business tenant. This document is essential for any business seeking to lease commercial space in Saudi Arabia, whether for retail, office, or industrial use. The agreement must comply with both Shariah law principles and Saudi Arabia's Commercial Real Estate Law, incorporating specific local requirements such as commercial registration details, municipal approvals, and proper lease registration. It typically includes comprehensive terms covering rental payments, maintenance obligations, permitted use of the premises, and dispute resolution mechanisms while ensuring compliance with local commercial regulations and zoning requirements. This document is particularly important given Saudi Arabia's rapidly developing commercial real estate sector and the increasing focus on formal documentation of commercial relationships.

1. Parties: Identification of lessor and lessee with full legal names, addresses, and commercial registration details

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

3. Definitions: Key terms used throughout the agreement, including Arabic legal terms where relevant

4. Property Details: Detailed description of the leased premises, including location, size, and permitted use

5. Term and Renewal: Duration of lease, commencement date, and renewal provisions

6. Rent and Payment Terms: Rental amount, payment schedule, and method of payment in compliance with Saudi banking regulations

7. Security Deposit: Amount, terms of holding, and conditions for return of the security deposit

8. Utilities and Services: Responsibility for utilities, maintenance, and service charges

9. Use of Premises: Permitted commercial activities and compliance with local regulations

10. Maintenance and Repairs: Responsibilities of each party for maintenance and repairs

11. Insurance: Required insurance coverage and parties' obligations

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

13. Assignment and Subletting: Restrictions on transfer of lease rights

14. Termination: Grounds and procedures for early termination

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

16. Force Majeure: Provisions for unforeseen circumstances preventing performance

17. Notices: Methods and addresses for official communications

18. Entire Agreement: Standard integration clause confirming the complete agreement between parties