Rent increases in Saudi Arabia: when are they lawful?

If you are a tenant in Saudi Arabia and you have just received a notice from your landlord raising the rent, you are not alone. The real question is not "does he have the right?" but rather "when, by how much, and on what conditions?" The answer is clearer than many people think.

Quick answer

There is no law in Saudi Arabia that sets a fixed statutory cap on rent increases. The tenancy relationship is governed by the Ejar system (the Ejar electronic platform) and the unified lease contract approved by the Ministry of Municipal and Rural Affairs and Housing. The rule is simple: whatever you agreed in the contract is binding. The landlord may not increase the rent during the term of a current contract unless the contract expressly provides for it. When the term ends and renewal comes around, a new figure can be negotiated, and you have the right to refuse.

May the landlord increase the rent during the contract term?

No. The contract is the law of the parties — a well-established jurisprudential and statutory principle in the Saudi legal system, derived from the rules of transactions in Islamic jurisprudence as applied by the courts. As long as the contract is in force for the agreed term (one year, two years, five years), the rent is fixed.

The only exception is where the contract itself contains an explicit clause permitting an increase — for example, a provision stating "the rent shall increase by 5% annually" or similar wording. In that case the clause is binding because you signed it.

If the landlord demands an increase that has no basis in the contract, simply refuse. If he threatens eviction, eviction during the term cannot occur without a court judgment or a decision from the Committees for Adjudicating Violations of the Real Estate Lease Regulations, and no such judgment will be issued merely because you refused to pay an agreed increase.

Note: Read your contract before refusing or accepting anything. Many unified lease contracts contain pass-through clauses that the tenant did not notice at the time of signing.

What happens at renewal?

This is where the position changes. Expiry of the contract term opens the door to fresh negotiation. The landlord has the right to propose a higher rent, and you have the right to refuse, leave, or negotiate.

There is no statutory maximum percentage that limits rent increases in Saudi Arabia at renewal. The market is the arbiter. However, the landlord must notify you of his intention to raise the rent or not to renew before the contract expires with reasonable notice — prevailing practice and the unified contracts on the Ejar platform generally provide for notice at least 60 days before the end of the term.

If the landlord gives no notice and you do not wish to renew on new terms, the contract may expire by operation of law on its end date, or it may renew automatically on the same previous terms if the contract so provides. This depends literally on the wording of Clause 6 and the clauses that follow it in the unified contract.

A practical point: the market in Riyadh, Jeddah, and Dammam has seen significant price rises in recent years, and some landlords demand increases of 20% to 40% at renewal. This is lawful as long as no one forces you to accept — but it is not an obligation imposed on you.

How do you protect yourself from a surprise increase?

Three steps settle the matter:

First, register your contract on the Ejar platform. A contract that is not registered on Ejar carries no weight before the courts and the tenancy committees as an original document. Registration protects you and the landlord alike, and preserves the rent amount and term in a form that cannot be tampered with.

Second, negotiate the increase clause before signing. If the contract runs for multiple years, ask for the rent to be fixed for the entire term, or agree on an explicit ceiling for any annual increase.

Third, keep all notices. Any communication from the landlord regarding rent — whether via WhatsApp, email, or letter — must be saved. It is your evidence if the matter reaches the Committees for Adjudicating Violations of the Provisions of the Real Estate Lease Regulations under the Ministry of Justice.

When should you go to the committee? If the landlord cuts off services or attempts to evict you because you refused an uncontracted increase, file a complaint directly through the Ejar platform. Decisions are typically issued within weeks and are generally in the tenant's favour when the contract is registered and its terms are clear.

For more on tenancy rights, see Frequently asked questions about tenancy in Saudi Arabia.

Summary

Rent increases in Saudi Arabia are not prohibited, but they are not unlimited either. A written contract registered on Ejar is your first line of defence. During the term: no increase without a clause. At renewal: negotiate or leave. And never sign what you do not understand.