Article 18 of the Saudi Law of Real Estate Development Fund
المادة 18 من نظام صندوق التنمية العقارية
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 (تسعين) يوماً من تاريخ نشره.
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 18 explained in plain English
This closing article contains two provisions:
- Replacing the previous Law: this Law replaces the Real Estate Development Fund Law issued by Royal Decree No. M/23 dated 11/6/1394 AH. The previous Law is no longer the Law in force, and the current provisions are those in this Law.
- Publication and start of effect: the Law is published in the Official Gazette and takes effect 90 days after the date of its publication.
This article ties in with Article 17, which requires the Board to issue the Implementing Regulations within 90 days of the date the Law is published and makes them take effect from the date the Law takes effect.
The article contains no transitional provisions stating the effect of the replacement on loans or applications that arose under the previous Law, so nothing should be inferred on that from its text. Anyone with an existing transaction with the Fund since the previous Law would do well to refer to the Fund or consult a lawyer specialized in real estate cases and real estate finance.
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 18 of the Saudi Law of Real Estate Development Fund
Is the 1394 AH Real Estate Development Fund Law still in force?
No. This Law replaces the Real Estate Development Fund Law issued by Royal Decree No. M/23 dated 11/6/1394 AH.
When does the Real Estate Development Fund Law take effect?
Ninety days after the date it is published in the Official Gazette.
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 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.
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.