Article 3 of the Saudi GCC Nationals Real Estate Ownership Statute
المادة 3 من تنظيم تملك مواطني دول المجلس للعقار في الدول الأعضاء بمجلس التعاون لغرض السكن والاستثمار
The article allows a GCC owner to dispose of built property at any time, but of land only after it is built on or used or 4 years have passed since registration, or earlier with permission.
Official text (Arabic)
This article has not been amended since the law was issued.
يجوز للمالك التصرف في العقار المبني في أي وقت، أما إذا كان أرضا فيجوز التصرف فيها من تاريخ استكمال بنائها أو استغلالها أو مرور أربع سنوات من تاريخ تسجيلها باسمه، ويجوز استثناء التصرف فيها قبل ذلك بشرط الحصول على إذن من الجهة المختصة في الدولة.
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 3 explained in plain English
This article sets when the GCC owner may dispose of property he owns under this regulation, such as by sale or gift, and distinguishes between two types of property:
- Built property: it may be disposed of at any time, without waiting for a set period.
- Land: it may not be disposed of except in one of the following cases:
- From the date building on it is completed or it is used.
- Or after four years have passed from the date it was registered in his name.
The exception: land may be disposed of before that, but on condition of obtaining permission from the competent authority in the state where the property is located.
The aim of this restriction is that land is not bought for speculation and quick resale, but for actual residence or investment. The article works together with Article 2, which requires the owner to build on the land or use it within four years of its registration, failing which the state may dispose of it and compensate him.
The article does not state which authority is competent to give the permission or its conditions, which is a matter for the laws of the state concerned. Anyone who needs to sell his land before the period expires would do well to consult a lawyer specialized in real estate cases.
Practical example
Fahad, a Bahraini citizen, owns an apartment in Dammam and vacant land in Khobar. He can sell the apartment whenever he wants because it is built property. As for the land, he can sell it only after building on it or using it, or after four years have passed since it was registered in his name, and if he needs to sell it before that, he must obtain permission from the competent authority.
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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Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 3 of the Saudi GCC Nationals Real Estate Ownership Statute
Can a GCC national sell his apartment in Saudi Arabia at any time?
Yes. The owner may dispose of built property at any time.
When may a GCC national sell land he owns?
From the date building on it is completed or it is used, or after four years from the date it was registered in his name.
Can land be sold before four years?
Yes, as an exception, on condition of obtaining permission from the competent authority in the state.
Articles this article refers to
More articles on Deadline to Build on Land and Disposal of It
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.