Article 2 of the Saudi Law of Real Estate Development Fund
المادة 2 من نظام صندوق التنمية العقارية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يتمتع الصندوق بالشخصية الاعتبارية العامة والاستقلال المالي والإداري، ويرتبط تنظيميًّا بصندوق التنمية الوطني.
2- يعمل الصندوق وفق الأسس والمعايير التجارية.
3- يكون مقر الصندوق الرئيس في مدينة الرياض، وله إنشاء فروع أو مكاتب داخل المملكة بحسب الحاجة.
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 2 explained in plain English
This Article specifies the legal status of the Real Estate Development Fund in three paragraphs:
- Personality and independence: the Fund has public legal personality and financial and administrative independence, and is organizationally linked to the National Development Fund. Legal personality means that the Fund is an entity in its own right that owns, contracts, and bears obligations in its own name.
- Method of work: the Fund operates on commercial bases and standards.
- Headquarters and branches: its main headquarters is in the city of Riyadh, and it may establish branches or offices inside the Kingdom as needed.
The effect of the link with the National Development Fund recurs in the Law; Article 3, for example, requires agreement with it to establish special purpose companies and for borrowing and issuing debt instruments. Among the Fund's powers under Article 3 also are concluding contracts, partnerships, and agreements with financing entities and with public and private bodies, and owning assets and disposing of them.
This Article is organizational, so it does not create direct rights for individuals, but it specifies the nature of the body the beneficiary deals with.
To assess a particular situation with the Fund, it is advisable to consult a lawyer specializing in real estate and real estate finance matters.
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 2 of the Saudi Law of Real Estate Development Fund
Is the Real Estate Development Fund an independent body?
Yes. It has public legal personality and financial and administrative independence, and is organizationally linked to the National Development Fund.
Where is the Real Estate Development Fund headquartered?
Its main headquarters is in the city of Riyadh, and it may establish branches or offices inside the Kingdom as needed.
On what bases does the Fund operate?
It operates on commercial bases and standards.
More articles on Definitions and Objectives of the Real Estate Development Fund
- Article 1
The Article defines the terms in the Real Estate Development Fund Law, including beneficiary, financing entities, subsidized real estate loan, financing, and guarantees.
لأغراض تطبيق هذا النظام، يقصد بالألفاظ والعبارات الآتية -أينما وردت في هذا النظام-المعاني المبينة أمامها، ما لم يقتض السياق غير ذلك: النظام: نظام صندوق التنمية
- Article 3
The 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.
1- يهدف الصنـدوق إلى تحقيق التنمية العقارية في المملكة من خلال تمكين المستفيد من تملك المسكن الملائم، وللصندوق في سبيل ذلك ما يأتي: أ- دفع أرباح القرض العقاري ا
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.