Article 74 of the Saudi Basic Law of Governance
المادة 74 من النظام الأساسي للحكم · الباب السابع: الشئون المالية
The Article prohibits selling, leasing or otherwise disposing of State property except under the law.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز بيع أموال الدولة ، أو إيجارها، أو التصرف فيها، إلا بموجب النظام .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 74 explained in plain English
This Article protects State property with a clear rule: none of the following acts may be carried out except under the law:
- Selling;
- Leasing;
- Disposing of it generally.
The phrase "or disposing of it" is general, so the restriction is not limited to sale and lease but covers every disposition of State property. The meaning is that any disposition of this kind must rest on a law that permits and regulates it, and a mere decision or discretion without a legal basis is not enough.
The Article does not state the procedures for sale or lease, their conditions or the competent body, but refers that to the law; so a person who wishes to lease government property or buy some State property refers to the law that regulates that.
The Article comes among the financial provisions and is linked to Article 73, which provides that no obligation to pay money from the general treasury may be undertaken except under the provisions of the budget, and if its items do not accommodate it, it must be by royal decree. Article 73 restricts money leaving the treasury, and Article 74 restricts disposing of State property.
Anyone with a dealing relating to selling or leasing State property would be well advised to consult a lawyer who specializes in constitutional and administrative law to verify its legal basis.
Practical example
Saad submits a request to lease land owned by the State to set up a commercial project. Under Article 74, State property may not be leased except under the law, so leasing the land is according to what the law regulating that provides, not by a mere agreement outside that law.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 74 of the Saudi Basic Law of Governance
Is it permitted to sell State property?
Article 74 provides that State property may not be sold, leased or disposed of except under the law.
Is the restriction limited to sale and lease?
No. The Article also covers disposing of State property generally.
Where do I find the procedures for leasing State property?
The Article refers that to the law and does not set out the procedures itself.
More articles on State Budget and Financial Oversight
- Article 72
The Article refers to the law the rules on State revenues and their delivery to the general State treasury, and requires revenues to be recorded and spent according to the procedures set by law.
أ - يبين النظام أحكام إيرادات الدولة ، وتسليمها إلى الخزانة العامة للدولة. ب - يجري قيد الإيرادات وصرفها بموجب الأصول المقررة نظاما.
- Article 73
The Article prohibits undertaking any payment from the general treasury except under the budget, and if its items do not accommodate it, it must be by royal decree.
لا يجوز الالتزام بدفع مال من الخزانة العامة إلا بمقتضى أحكام الميزانية ، فإن لم تتسع له بنود الميزانية وجب أن يكون بموجب مرسوم ملكي .
- Article 75
The Article provides that the laws set out the rules on currency, banks, standards, measures and weights.
تبين الأنظمة أحكام النقد ، والمصارف ، والمقاييس ، والمكاييل ، والموازين .
- Article 76
The Article regulates the issuance of the general budget by royal decree at least one month before the fiscal year begins, and following the previous year's budget if it is delayed for compelling reasons.
يحدد النظام السنة المالية للدولة، وتصدر الميزانية بموجب مرسوم ملكي ، وتشتمل على تقدير الإيرادات والمصروفات لتلك السنة، وذلك قبل بدء السنة المالية بشهر على الأقل
- Article 77
The Article provides that the competent body prepares the State's final accounts for the past fiscal year and submits them to the head of the Council of Ministers.
تعد الجهة المختصة الحساب الختامي للدولة عن العام المالي المنقضي، وترفعه إلى رئيس مجلس الوزراء .
- Article 78
The Article makes the budgets of bodies with public legal personality and their final accounts subject to the same provisions that apply to the State's budget and final accounts.
يجري على ميزانيات الأجهزة ذوات الشخصية المعنوية العامة ، وحساباتها الختامية، ما يجري على ميزانية الدولة وحسابها الختامي من أحكام.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.