Article 4 of the Saudi GCC Nationals Real Estate Ownership Statute
المادة 4 من تنظيم تملك مواطني دول المجلس للعقار في الدول الأعضاء بمجلس التعاون لغرض السكن والاستثمار
The article preserves the state's right to expropriate property for the public benefit with fair compensation and to prohibit ownership in certain areas, and excludes property in Makkah and Madinah.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يتعارض هذا التنظيم مع حق الدولة التي يقع فيها العقار في نزع ملكيته للمنفعة العامة مقابل تعويض عادل للمالك طبقًا للقوانين (الأنظمة) التي تعامل بها مواطنيها.
كما لا يتعارض هذا التنظيم مع حق الدولة في حضر التملك أو الانتفاع في مناطق أو مواقع معينة، وتستثني – بناء عليه – العقارات الواقعة داخل مكة المكرمة والمدينة المنورة من أحكام هذا التنظيم.
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 4 explained in plain English
This article sets limits on the right of ownership that Article 1 gives to GCC nationals, and contains three provisions:
1. Expropriation for the public benefit: the regulation does not prevent the state where the property is located from expropriating it for the public benefit, such as building a road or public facility. The GCC owner receives fair compensation in accordance with the laws under which the state treats its own nationals; that is, he is treated like a citizen in compensation.
2. Prohibiting ownership in certain areas: the state has the right to prohibit ownership or use in certain areas or sites, so a GCC national cannot rely on this regulation to own in them.
3. Exclusion of Makkah and Madinah: the article expressly provides that property located inside Makkah and Madinah is excluded from the provisions of this regulation, so the right of ownership and rental set out in it does not apply to them.
The article does not state which other provisions apply to this excluded property, nor does it specify the other prohibited areas; that is a matter for the laws of each state. Anyone who wishes to own near these cities, or whose property is subject to expropriation, would do well to consult a lawyer specialized in real estate cases.
Practical example
Yousef, an Omani citizen, wanted to buy an apartment inside Makkah for investment. This article excludes property in Makkah from the provisions of the regulation, so he cannot rely on it to own there. In another case, if he owns land in Riyadh and the state decides to expropriate it for a road project, he is entitled to fair compensation under the laws by which a citizen is treated.
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 4 of the Saudi GCC Nationals Real Estate Ownership Statute
Can a GCC national own property in Makkah or Madinah?
Property located inside Makkah and Madinah is excluded from the provisions of this regulation.
Is a GCC national compensated if his property is expropriated?
Yes. He receives fair compensation in accordance with the laws under which the state treats its own nationals.
Can the state prevent a GCC national from owning in certain areas?
Yes. The regulation does not conflict with the state's right to prohibit ownership or use in certain areas or sites.
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.