Article 35 of the Saudi Cooperative Societies Law
المادة 35 من نظام الجمعيات التعاونية · الباب السادس: الإعانات والتسهيلات للجمعيات التعاونية
The article allows the cooperative sector to be granted facilities and benefits: grants of land, priority in leasing government sites at encouraging prices, easier lending from government funds, and easier imports.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز منح القطاع التعاوني التسهيلات والمزايا الآتية:
1 - منح الأراضي للجمعيات.
2 - إعطاء الأفضلية في تأجير المواقع الحكومية على الجمعيات وبأسعار تشجيعية.
3 - تسهيل إجراءات إقراضها من صناديق الإقراض الحكومية المختلفة وبخاصة ما يتعلق بالضمانات، وتوسيع دائرة الإقراض.
4 - تسهيل إجراءات استيرادها لاحتياجات أعضائها والمتعاملين معها.
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 35 explained in plain English
This article lists the facilities and benefits that may be granted to the cooperative sector. There are four:
- Grants of land to the societies.
- Priority in leasing government sites to the societies, at encouraging prices.
- Easier procedures for lending to them from the various government lending funds, particularly as to guarantees, and widening the scope of lending.
- Easier procedures for their imports to meet the needs of their members and those who deal with them.
The key point in understanding the article is that it begins with the word "may", so these benefits are discretionary and not rights that every society acquires on registration. The article opens the door to granting them without specifying who grants them, the conditions for entitlement, or the application procedures.
Note that the article refers to "the cooperative sector" generally, and then details the benefits that relate to the societies. The easing of imports is also tied to a specific purpose: the needs of its members and those who deal with it.
Article 36 brings the corresponding side of oversight, placing the societies under the Ministry's supervision, which includes examining their work and checking its conformity with the laws, the bylaws and general assembly decisions, monitoring their accounts through auditors, and giving the Minister the right to suspend execution of general assembly decisions that violate the laws and bylaws and giving the Ministry the right to act on behalf of the general assembly in collecting its dues.
Anyone who represents a society and wants to benefit from these facilities may consult a lawyer specializing in commercial and corporate cases.
Practical example
An agricultural cooperative society in Al-Jawf needs land to build a warehouse, and a loan to buy equipment. This article shows that societies may be granted land and have their lending from government funds eased, particularly as to guarantees, but this is discretionary and not an automatic right, so the society must apply as the authorities concerned require.
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 35 of the Saudi Cooperative Societies Law
Do cooperative societies get land from the state?
The article allows land to be granted to societies as one of the facilities given to the cooperative sector.
Are these facilities a right of every cooperative society?
The article begins with the word "may", so they are discretionary benefits and not an automatic right of every society.
Does the state make loans to cooperative societies easier?
One of the facilities that may be granted is easier lending procedures from government lending funds, particularly as to guarantees, and a wider scope of lending.
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.