Article 1 of the Saudi Municipalities Law
المادة 1 من نظام البلديات والقرى
The article provides that a municipality is a legal person with financial and administrative independence, exercising the functions assigned to it under the Municipalities and Villages Law and its Implementing Regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
البلدية شخصية اعتبارية ذات استقلال مالي وإداري، تمارس الوظائف الموكولة إليها بموجب هذا النظام ولوائحه التنفيذية.
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 1 explained in plain English
This article lays the legal foundation for every municipality in the Kingdom, and gives it three attributes:
- Legal personality: the municipality is a legal entity in its own right, with an existence separate from the people who run it, so its rights and obligations are attributed to it.
- Financial independence: the municipality has its own financial estate.
- Administrative independence: it manages its affairs through its own bodies within the limits the law sets.
But this independence is not absolute, since the article limits it by providing that the municipality exercises the functions assigned to it under this law and its Implementing Regulations; that is, its powers derive from the law and its limits, not from its own will alone.
This article is followed by Article 2, which explains how municipalities are created: they are established, named, graded, amended and abolished by decision of the Minister of Municipal and Rural Affairs on the proposal of the Province Council, and when a municipality is established the Minister appoints a committee that exercises the powers of the municipal council for two years. Legal personality therefore attaches to the municipality after it is established by this route.
The importance of this description for an ordinary person is that dealings are with the municipality as an entity in its own right, whether for licenses, fees or other matters the law specifies. Anyone with a dispute with a municipality should consult a lawyer specialized in administrative cases.
Practical example
A contractor in Abha contracted with the municipality for a road paving project. Under this article, the party to the contract is the municipality itself as a legal person with financial and administrative independence, not the employee who signed on its behalf.
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 1 of the Saudi Municipalities Law
Is a municipality a legal person?
Yes. The article provides that a municipality is a legal person with financial and administrative independence.
Is a municipality's independence absolute?
No. It exercises the functions assigned to it under the Municipalities and Villages Law and its Implementing Regulations.
Who establishes municipalities?
Under Article 2, they are established by decision of the Minister of Municipal and Rural Affairs on the proposal of the Province Council.
More articles on Establishing Municipalities and Their Boundaries
- Article 2
The article provides that municipalities are established, named, graded and abolished by decision of the Minister of Municipal and Rural Affairs on the Province Council's proposal, with a temporary committee when one is established.
أ - يتم إنشاء البلديات وتسميتها، وتحديد وتعديل درجاتها وإلغاؤها بقرار من وزير الشئون البلدية والقروية بناء على اقتراح مجلس المقاطعة، ويراعى في ذلك الظروف السكان
- Article 3
The Minister of Municipal and Rural Affairs approves a plan showing the municipality's boundaries and the area under its authority, on the municipal council's proposal and with the Province Council's approval.
يعتمد وزير الشئون البلدية والقروية بناء على اقتراح المجلس البلدي وموافقة مجلس المقاطعة مخططا يبين حدود البلدية والمنطقة الخاضعة لسلطتها.
- Article 4
The article allows two or more municipalities to be merged, or one municipality split into several, by decision of the Minister of Municipal and Rural Affairs setting names, centers, grades, rights and obligations.
أ - يجوز ضم بلديتين أو أكثر، بقرار من وزير الشئون البلدية والقروية بناء على توصية من المجالس البلدية المعنية وموافقة مجلس المقاطعة ، ويحدد في القرار اسم البلدية
- Article 42
The Minister of Interior and the Minister of Municipal and Rural Affairs exercise the powers the law gives the Province Council until that council is formed under the Provinces Law.
يمارس وزير الداخلية ووزير الشئون البلدية والقروية الصلاحيات المنصوص عليها في هذا النظام لمجلس المقاطعة ، إلى أن يتم تشكيله وفقا لنظام المقاطعات.
- Article 43
Municipalities may conclude agreements among themselves on matters relating to their common interests, subject to the approval of the Minister of Municipal and Rural Affairs.
يجوز للبلديات أن تعقد فيما بينها اتفاقات في الأمور المتعلقة بمصالحها المشتركة، وتخضع هذه الاتفاقات لموافقة وزير الشئون البلدية والقروية.
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.