Saudi Mandates Online Payments for Residential Rent

Starting January 15, all financial transactions related to residential rent payments in Saudi Arabia are mandated to occur through the online Ejar platform. The Real Estate General Authority initiated the restriction, specifying that digital payments can be processed using Ejar's Mada or SADAD channels, particularly through the postpaid number 153.

This directive encompasses all new residential lease contracts, and any proof of rent payment outside the designated digital channels in Ejar (Mada and Sadad) will not be considered after January 15. Notably, this decision currently excludes commercial rent contracts.

The objective behind this directive is to streamline and digitize the rent payment process, aiming for greater efficiency and convenience for all involved parties in the real estate rental sector.

As part of the implementation, the Real Estate Authority has commenced the gradual discontinuation of issuing electronic receipt bonds for new residential contracts. Payments made through digital channels will automatically settle without the need for a receipt, aligning with a Cabinet decision to facilitate electronic payment services for rent contracts.

This move prioritizes the interests of beneficiaries in the real estate rental sector, simplifying financial obligations for tenants who can make payments through digital channels and deposit them into the lessor's bank account as specified in the lease contract.

The process begins with the landlord and tenant documenting the contract in Ejar through a licensed real estate broker. Subsequently, both parties are required to utilize Ejar's digital payment channels for all transactions. After the rent payment through Ejar's digital channels, funds are transferred to the lessor's bank account within a maximum of five working days.