Article 12 of the Saudi Law of Real Estate Development Fund
المادة 12 من نظام صندوق التنمية العقارية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يكون للصندوق ميزانية تشغيلية سنوية، تعد وفقاً للأسس والمعايير التجارية، وتمول من موارده المالية.
2- السنة المالية للصندوق هي السنة المالية للدولة.
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 12 explained in plain English
This Article contains two financial provisions:
- The annual operating budget: the Fund has an annual operating budget, which according to the text has three features:
- it is annual.
- it is prepared on commercial bases and standards.
- it is financed from its financial resources, which are the resources listed in Article 11, such as State support, cash flows from loans, and investment income.
- The fiscal year: it is the State's fiscal year.
Tying the Fund's fiscal year to the State's fiscal year means that the period for which the operating budget is prepared coincides with the State's fiscal year. The Article does not deal with the details of preparing or approving the budget or the body that prepares it, so that is not inferred from its text.
The Fund's resources according to Article 11 also include the fees it charges for its services, gifts, donations, grants, bequests, and waqfs that the Board accepts, the securities and financial instruments it owns, and any other resource the Board approves.
This Article is organizational and does not directly affect beneficiaries' rights.
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 12 of the Saudi Law of Real Estate Development Fund
What is the fiscal year of the Real Estate Development Fund?
The State's fiscal year.
How is the Fund's budget prepared?
An annual operating budget is prepared on commercial bases and standards, and is financed from its financial resources.
More articles on Fund Capital, Resources and Financial Oversight
- Article 11
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.
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 اق
- 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.