Article 11 of the Saudi Law of Real Estate Development Fund
المادة 11 من نظام صندوق التنمية العقارية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- رأس مال الصندوق (190.897.900.000) مائة وتسعون مليارًا وثمانمائة وسبعة وتسعون مليونًا وتسعمائة ألف ريال سعودي. وتجوز زيادته بقرار من مجلس الوزراء، بناء على اقتراح من مجلس إدارة صندوق التنمية الوطني.
2- تتكون موارد الصندوق مما يأتي:
أ- الدعم المقدم له من الدولة فيما يخدم نشاطه التمويلي.
ب- التدفقات النقدية من القروض المصروفة من رأس ماله.
ج- المقابل المالي الذي يتقاضاه نظير الخدمات التي يقدمها.
د- ما يقبله المجلس من هبات وتبرعات ومنح ووصايا وأوقاف.
هـ- الأوراق والأدوات المالية على مختلف أنواعها المملوكة له.
و- الدخل الناتج من استثمار أمواله وأرصدته وممتلكاته.
ز- أي مورد آخر يقره المجلس.
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 11 explained in plain English
This Article deals with the Fund's capital and resources.
First: the capital
- It is SAR 190,897,900,000 (one hundred ninety billion eight hundred ninety-seven million nine hundred thousand riyals).
- It may be increased by decision of the Council of Ministers, on a proposal from the board of directors of the National Development Fund.
Second: the resources
- Support provided by the State in what serves its financing activity.
- Cash flows from loans disbursed from its capital, that is, what returns to it from repayment of those loans.
- The fees it charges for its services.
- Gifts, donations, grants, bequests, and waqfs that the Board accepts.
- Securities and financial instruments it owns.
- Income from investing its funds, balances, and property.
- Any other resource the Board approves.
This Article is connected to Article 12, which provides that the Fund's annual operating budget is financed from its financial resources.
Note that increasing the capital is not done by decision of the Fund itself, but by decision of the Council of Ministers on a proposal from the board of directors of the National Development Fund. As for the last resource, "any other resource the Board approves", it opens the door to resources the text did not list, provided the Fund's board of directors approves them.
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 11 of the Saudi Law of Real Estate Development Fund
What is the capital of the Real Estate Development Fund?
SAR 190,897,900,000, which may be increased by decision of the Council of Ministers on a proposal from the board of directors of the National Development Fund.
What are the resources of the Real Estate Development Fund?
State support, cash flows from loans disbursed from its capital, fees for its services, gifts, donations, and waqfs, the securities it owns, investment income, and any resource the Board approves.
Does the Fund charge fees for its services?
Among its resources are the fees it charges for the services it provides.
More articles on Fund Capital, Resources and Financial Oversight
- Article 12
The 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.
1- يكون للصندوق ميزانية تشغيلية سنوية، تعد وفقاً للأسس والمعايير التجارية، وتمول من موارده المالية. 2- السنة المالية للصندوق هي السنة المالية للدولة.
- Article 14
The 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.
تتمتع أموال الصندوق، بما فيها التمويلات التي يقدمها، بالمزايا والضمانات المقررة لحقوق الخزانة العامة، وتُحصّل وفقاً للأنظمة المنظمة لذلك.
- Article 15
The 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.
يفتح الصندوق حساباً له في مؤسسة النقد العربي السعودي، ويجوز له فتح حسابات أخرى في أي من البنوك المرخص لها بالعمل في المملكة، ويصرف من هذه الحسابات وفق ميزانيته
- Article 16
The 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.
دون إخلال باختصاص الديوان العام للمحاسبة في الرقابة على حسابات الصندوق، يعين المجلس مراجع حسابات خارجيًّا (أو أكثر) من المرخص لهم بالعمل في المملكة، لتدقيق حساب
- Article 17
The 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.
يصدر المجلس اللائحة خلال (تسعين) يوماً من تاريخ نشر النظام، وتنشر في الجريدة الرسمية، ويُعمل بها من تاريخ العمل بالنظام.
- Article 18
The 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.
1- يحل هذا النظام محل نظام صندوق التنمية العقارية الصادر بالمرسوم الملكي رقم (م / 23) وتاريخ 11 / 6 / 1394هـ. 2- يُنشر النظام في الجريدة الرسمية، ويُعمل به بعد
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.