In force
Saudi Expropriation of Real Estate for Public Interest Law
نظام نزع ملكية العقارات للمصلحة العامة
The law covers definitions and general provisions, expropriation procedures, survey and valuation, compensation and evacuation, temporary possession of real estate, and final provisions. It takes effect 120 days after publication in the Official Gazette.
- Articles
- 39
- In force
- 39
- Amended
- 0
- Issued
- 12/3/1447 AH
Issued by: مرسوم ملكي رقم (م/56) وتاريخ 1447/3/12هـ · قرار مجلس الوزراء رقم (177) وتاريخ 1447/3/3هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Expropriation of Real Estate for Public Interest Law by topic
Expropriation Definitions and General Provisions7 articlesPublic Interest Justifying Expropriation1 articleRequesting and Approving Expropriation5 articlesExpropriation Decision and Notice to Owners6 articlesInventory and Valuation of the Property6 articlesCompensation for Expropriation8 articlesCompensation with Substitute Grant Land2 articlesExemptions for the Expropriated Owner1 articleVacating the Expropriated Property2 articlesTemporary Occupation of Property6 articlesRights of Owners of Expropriated Property5 articles
Articles of the Saudi Expropriation of Real Estate for Public Interest Law
الباب الأول: تعريفات وأحكام عامةArticles 1–8
- Article 1The Article defines the terms used in the Expropriation of Real Estate for Public Interest Law, such as the Authority, the project owner, the real estate, the project plan and the accredited valuer.
- Article 2No real estate may be expropriated or temporarily occupied except for the public interest and in return for fair compensation, in accordance with the provisions of the Law and its Regulations.
- Article 3The provisions of the Expropriation of Real Estate for Public Interest Law do not apply to real estate owned by the State or one of its bodies.
- Article 4Expropriation or temporary occupation procedures are taken only if no State properties suffice for the purpose.
- Article 5The Article defines the public interest as what achieves a public benefit or prevents a public harm, and lists the projects and works that fall within it.
- Article 6A person whose property is expropriated is entitled to the market value plus 20% and compensation for damages, and a person whose property is temporarily occupied to not less than the fair rental plus 20% and compensation for damages.
- Article 7The Article obliges the project owner to submit a request to the Authority for approval to begin expropriation or temporary occupation, and specifies the contents of each request.
- Article 8A committee in the Authority chaired by the Governor examines the expropriation or temporary occupation request; the Article sets its members, the grounds of its review and how it takes decisions.
الباب الثاني: إجراءات نزع ملكية العقاراتArticles 9–12
- Article 9The Authority notifies the project owner of the committee's decision within 60 days of submitting the request, and the Governor issues the decision to begin expropriation when the committee approves.
- Article 10The decision to begin expropriation is not issued until the project owner has the financial appropriations, financial solvency or alternative lands allocated for it.
- Article 11As soon as the decision to begin is issued, the project owner must publish it and notify the bodies and owners, and anyone who cannot be notified is deemed notified 30 days after its official publication.
- Article 12Owners of properties to be expropriated must submit documents proving ownership to the project owner within a period it sets, of not less than 15 days from notification.
الباب الثالث: الحصر والتقييمArticles 13–15
- Article 13The Article regulates entering the property within the project plan to survey its immovable contents with the owners or an alternative committee, preparing the report and referring it to the Authority within 60 days.
- Article 14Valuing the properties to be expropriated and alternative properties and determining fair rental is assigned to three accredited valuers whom the project owner contracts and whose fees it pays.
- Article 15A committee of three accredited valuers in the Authority reviews the valuation reports and recommends the average price, which the Governor approves and which is notified to owners within 90 days of referral of the survey report.
الباب الرابع: التعويض والإخلاءArticles 16–24
- Article 16The rule is that compensation for expropriation is in cash, and it may be wholly or partly in kind, by alternative real estate or shares in the project, if the owner consents.
- Article 17A person whose property is expropriated is exempt from the real estate transaction tax on buying a replacement property up to the compensation amount within 5 years, and from white land fees if compensated with replacement land.
- Article 18As an exception, where the project owner is a government body, compensation may be by replacement grant land for undeveloped vacant land whose ownership originates in a government grant and still belongs to the grantee.
- Article 19Replacement grant land must be in the same location or one with similar advantages, its market value must exceed the expropriated land's by between 20% and 40%, and it must be valued under Articles 14 and 15.
- Article 20The date of publication of the decision to begin in the Official Gazette is relied on for surveying the property's contents, excluding what is added after it, and the date of the valuer's first visit is the basis for valuing it.
- Article 21If the property's area in the ownership documents differs from its actual area, compensation is assessed on the smaller area, preserving the owner's right to prove ownership of the part not counted.
- Article 22The Article explains how compensation is assessed if part of a property is expropriated, according to whether the remainder can be used, and when the whole property is expropriated.
- Article 23The Authority sets the evacuation date with the project owner and compensation is paid before it except in exceptional cases, and owners may ask for reassessment if it is not paid within 3 years, taking the higher assessment.
- Article 24If the property is vacated before compensation is paid, the owners are entitled to fair rental for the period between evacuation and payment plus 10%, unless the delay is due to them.
الباب الخامس: وضع اليد المؤقت على العقاراتArticles 25–29
- Article 25Real estate may be temporarily occupied for a temporary public interest in return for fair compensation determined under Articles 14 and 15, and this does not prevent its later expropriation if necessary.
- Article 26The senior official of the project owner or supervising body issues the decision on temporary occupation, stating its period and purpose, after the committee approves, and notifies the Authority of it.
- Article 27In emergency cases the decision on temporary occupation may be issued without the committee's prior approval, provided the committee is notified within 30 days of its issuance, and the Article defines the emergency case.
- Article 28The period of temporary occupation may not exceed 3 years and may be extended for another 3 years with the approval of the committee and the owners, otherwise the property must be vacated at the end of the period.
- Article 29Where the Law and the Regulations have no specific provision, the provisions on leasing real estate apply to temporary occupation in a manner consistent with its nature.
الباب السادس: أحكام ختاميةArticles 30–39
- Article 30The Law's provisions do not prejudice the right of a person harmed other than an owner to claim compensation for any damage caused to him by the expropriation or temporary occupation procedures.
- Article 31Owners of properties to be expropriated or occupied keep the right to dispose of them, the buyer takes the seller's place in rights and obligations, and the seller must notify him.
- Article 32If the need for the expropriated property ends during or after the procedures, the Authority is notified, and the owner may ask to recover it within a year of notification on condition of returning the compensation.
- Article 33Owners of properties to be expropriated or occupied are notified by two of the following: text messages to a verified mobile, email, or an account in a government automated system.
- Article 34From the date owners are notified of the decision to begin, planning, dividing, merging or licensing for any activity on the lands specified in the project plan is prohibited.
- Article 35A person with an interest in the property, or a relative by blood or marriage of an owner, or his legal representative, may not take part in the expropriation procedures, and participants must keep matters confidential.
- Article 36Anyone about whose property a decision has been issued under the Law and the Regulations may object to it in accordance with the relevant statutory procedures.
- Article 37The Law replaces the earlier Law on expropriation of real estate for the public benefit and temporary possession, issued by Royal Decree No. M/15 dated 11/3/1424 AH, and repeals any conflicting provisions.
- Article 38The Authority prepares the Implementing Regulations in coordination with the Ministry of Investment and the Spending Efficiency Authority; the Board approves them and the Council of Ministers issues them within 120 days of the Law's publication.
- Article 39The Expropriation of Real Estate for Public Interest Law takes effect 120 days after its publication in the Official Gazette.