Article 7 of the Saudi Law of Real Estate Development Fund
المادة 7 من نظام صندوق التنمية العقارية
The 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.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال باختصاصات صندوق التنمية الوطني، يقر المجلس سياسات الاستثمار الخاصة بالصندوق ويطورها بصفة دائمة، ويتخذ قراراته الاستثمارية وفقاً لهذه السياسات، ويجوز له تفويض من يراه باتخاذ أي من تلك القرارات، وفق الضوابط التي يضعها.
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 7 explained in plain English
This Article deals with investment in the Fund, and sets clear rules for taking its decisions, without prejudice to the competences of the National Development Fund:
- Adopting the investment policies: the Board adopts the Fund's investment policies.
- Continual development: the Board develops these policies continually.
- Compliance with the policies: the Board takes its investment decisions in accordance with these policies.
- Delegation: the Board may delegate whomever it sees to take any of the investment decisions, under the controls it sets.
This Article is connected to Article 6, which makes it a competence of the Board to approve investment and owning real estate, securities, sukuk, and bonds. Article 8 also allows the Fund to borrow and issue sukuk, bonds, and other debt instruments with the Board's approval, and under controls agreed with the National Debt Management Center and the National Development Fund.
The phrase "without prejudice to the competences of the National Development Fund" means that the Board's power in this matter does not affect what the National Development Fund is competent for.
The Article does not state the content of the investment policies or the controls for delegation; that is left to the Board.
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 7 of the Saudi Law of Real Estate Development Fund
Who adopts the investment policies of the Real Estate Development Fund?
The Fund's board of directors, which develops them continually, without prejudice to the competences of the National Development Fund.
May investment decisions be delegated?
Yes. The Board may delegate whomever it sees to take any of them under the controls it sets.
More articles on Fund Investments, Partnerships and Borrowing
- 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
- Article 8
The 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.
يكون اقتراض الصندوق وغيره من صور المديونية بما في ذلك إصدار الصكوك والسندات وغيرها من أدوات الدين وأدوات التمويل الأخرى بموافقة المجلس، ووفقاً للضوابط التي يُتف
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.