Phase-out underway as ‘Finance’ orders govt agencies to vacate rented offices by 2026

The Ministry of Finance has instructed officials of government agencies currently operating from temporary rented headquarters to take immediate steps to vacate these premises before their lease agreements expire—most of which conclude between late 2025 and March 2026. The move is part of a broader initiative to relocate these agencies to permanent government-owned buildings, in coordination with the Public Authority for Housing Welfare, and within a 90-day timeframe.

Informed sources revealed to Al-Rai that the total cost of government spending on rented properties—including temporary headquarters, warehouses, and housing for judges and Ministry of Health staff such as doctors and nurses—stands at approximately KD 60 million annually.

Individual lease contracts range from KD 400,000 to KD 1 million per year. One agency’s internal assessment even concluded that the cumulative rent it has paid over the past decade would have sufficed to construct a fully owned permanent headquarters.

The Ministry of Finance has emphasized the urgency of implementing the relocation, encouraging early evacuations where possible. Many government lease agreements allow for early termination with two months’ notice, a clause that several entities have already activated by notifying property owners of their intention to vacate within the coming three months.

Sources said around 15 such lease contracts are under review, each varying in cost depending on the number of floors and space rented by the respective agencies. While some institutions have already initiated their relocations, others remain in preparatory phases.

The Ministry of Finance is leading discussions with relevant entities to ensure these moves align with the government’s strategy to curb and rationalize public expenditure—particularly by reducing rental costs without disrupting operations. The relocation efforts also support the Cabinet’s decision to prioritize fiscal responsibility.

However, exceptions are being considered. The Capital Markets Authority (CMA), for instance, has requested to remain in its current rented headquarters until the completion of its new building, citing the sensitive and complex nature of its operations.
Earlier this year, the Ministry agreed to extend some agencies’ rental contracts for one final year—mostly ending by January 2026—while making it clear that this would be the last extension. Agencies were instructed to use this period to prepare detailed transition plans to move into their designated permanent premises.

The Ministry’s directives included the following steps:

• Strict adherence to the implementation rules for independent institution budgets and relevant Cabinet decisions.
• Accelerated coordination with the Cabinet to allocate permanent government buildings.
• Utilization of existing unused government facilities as alternative premises before the lease extension period ends.

Sources added that the Ministry’s circular on this matter emphasized the importance of complying with new guidelines for government leasing practices. These include:

• Avoiding concentration of rented properties in the Capital Governorate.
• Exploring options in other governorates to alleviate congestion and cut rental expenses.
  The ongoing discussions between the Ministry of Finance and agencies still housed in rented headquarters are focused not on whether they will relocate—but rather on fine-tuning the specifics of suitable replacements to meet both current and future needs.