Article 38 of the Saudi Privatization Law

A privatization project, such as a road or a station, may need land owned by individuals. This article regulates that:

First: expropriation is permitted.

• It is permitted to expropriate real estate or temporarily take possession of it.
• On condition that it is necessary for carrying out the privatization project.
• This is done in accordance with the provisions governing the expropriation of real estate and taking possession of it for the public interest, meaning the owner enjoys the safeguards, procedures and compensation set out in those provisions.

Second: who bears the compensation. The parties to the contract may agree that the private party will cover the cost of compensation resulting from expropriation or temporary possession, in whole or in part.

For the property owner, in practice: the fact that a private party carries out the project does not deprive them of their rights, because the procedure is subject to the public-interest expropriation rules. Who pays the compensation is an internal matter between the government and the private party.

The text does not state the amount of compensation or how it is assessed; the expropriation rules govern those. A property owner who is notified of expropriation for a privatization project should consult a lawyer who specializes in real estate or administrative matters.