In force
Saudi Law of Real Estate Development Fund
نظام صندوق التنمية العقارية
Approves and regulates the Real Estate Development Fund in Saudi Arabia. It has 18 articles and concerns the Fund, its borrowers and housing financing.
- Articles
- 18
- In force
- 18
- Amended
- 0
- Issued
- 23/5/1442 AH
Issued by: مرسوم ملكي رقم (م/47) وتاريخ 1442/5/23هـ.
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Law of Real Estate Development Fund by topic
Definitions and Objectives of the Real Estate Development Fund3 articlesSubsidized Real Estate Loan and Beneficiary Financing5 articlesFund Investments, Partnerships and Borrowing3 articlesFund Board of Directors and Its Jurisdiction4 articlesReal Estate Development Fund CEO2 articlesFund Capital, Resources and Financial Oversight7 articles
Articles of the Saudi Law of Real Estate Development Fund
- Article 1The Article defines the terms in the Real Estate Development Fund Law, including beneficiary, financing entities, subsidized real estate loan, financing, and guarantees.
- Article 2The Article gives the Fund public legal personality and financial and administrative independence, links it organizationally to the National Development Fund, and requires it to operate on commercial bases, with headquarters in Riyadh.
- Article 3The Article sets the Fund's aim of enabling beneficiaries to own suitable housing, and lists its powers, from subsidizing loan profits to lending, investing, guarantees, and borrowing.
- Article 4The Article allows the Fund, by Board decision, to provide loans directly to beneficiaries, with the Board setting the necessary mechanism and controls.
- Article 5The Article sets the Fund's board: chaired by the Minister, with the Chief Executive Officer, government representatives, and three specialists serving three years, renewable once.
- Article 6The Article makes the Board the authority responsible for setting the Fund's general policy and lists its competences, including approving products, setting the support percentage, regulations, and the budget.
- Article 7The Article requires the Board to adopt the Fund's investment policies, develop them continually, and take its investment decisions in accordance with them, with the ability to delegate whomever it sees under controls it sets.
- Article 8The Article requires Board approval for the Fund to borrow and issue sukuk, bonds, and debt instruments, under controls agreed with the National Debt Management Center and the National Development Fund.
- Article 9The Article regulates the Board's meetings: at least every three months, seven days' notice, a majority quorum, decisions by a majority of those present, and remote attendance.
- Article 10The Article provides for the Fund's Chief Executive Officer to be appointed and dismissed by Board decision and to be responsible for managing its affairs, and lists his powers, including representing the Fund before the judiciary.
- Article 11The Article sets the Fund's capital at SAR 190,897,900,000, which may be increased by Council of Ministers decision, and lists its resources, including State support, cash flows, fees, and others.
- Article 12The Article provides that the Fund has an annual operating budget prepared on commercial bases and standards and financed from its resources, and that its fiscal year is the State's fiscal year.
- Article 13The article subjects the Real Estate Development Fund's personnel to the Labor Law and the Social Insurance Law.
- Article 14The article gives the Fund's money, including the financing it provides, the benefits and guarantees established for the public treasury's rights, and provides that it is collected under the laws regulating this.
- Article 15The article requires the Fund to open an account at the Saudi Central Bank, allows it to open accounts at licensed banks, and spend from them according to its approved budget.
- Article 16The article requires the Board to appoint one or more licensed external auditors to audit the Fund's accounts, without prejudice to the General Court of Audit's jurisdiction.
- Article 17The article requires the Board to issue the Implementing Regulations within ninety days of the Law's publication, publish them in the Official Gazette, and have them take effect from the date the Law takes effect.
- Article 18The article provides that this Law replaces the Real Estate Development Fund Law issued by Royal Decree No. M/23 dated 11/6/1394 AH, and takes effect ninety days after its publication in the Official Gazette.