Article 18 of the Saudi Expropriation of Real Estate for Public Interest Law
المادة 18 من نظام نزع ملكية العقارات للمصلحة العامة · الباب الرابع: التعويض والإخلاء
As 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- استثناءً من المادة (السادسة عشرة) من النظام، يجوز -في الحالات التي تكون الجهة صاحبة المشروع جهةً حكوميةً- أن يكون التعويض عن نزع ملكية العقار بأرضِ منحة بديلة، وذلك إذا كان العقار عبارة عن أرض فضاء، لم تُستثمر أو تُعمر بأي نوع من أنواع التنمية، وأساس ملكيتها منحة حكومية لا تزال مُلكاً للممنوحة له. وتحدد اللائحة الأحكام الخاصة بذلك.
2- لأغراض تطبيق حكم الفقرة (1) من هذه المادة، يُقصد بالتنمية إحداث أي نوع من أنواع الأنشطة، سواء أكان زراعيًّا أو عمرانيًّا أو غيره، بما يؤدي إلى تغيير معالم الموقع سواء أكان ذلك لغرض الاستثمار أو غير ذلك.
3- يعد تاريخ نشر قرار الموافقة على البدء في إجراءات نزع الملكية في الجريدة الرسمية أساساً لتقرير حالة التنمية على الأرض وفقاً للفقرة (2) من هذه المادة.
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 Article provides an exception to Article 16, which makes compensation in cash by default and allows compensation in kind only with the owner's consent. Here compensation may be by replacement grant land if the following conditions are met together:
- The project owner is a government body.
- The property is vacant land that has not been invested in or built on by any kind of development.
- The basis of its ownership is a government grant.
- It still belongs to the grantee.
Meaning of development: bringing about any activity, agricultural, urban or otherwise, that changes the features of the site, whether for investment or other purposes. If the land has been developed in this sense, this Article does not apply to it.
Time for determining the land's condition: the date of publication in the Official Gazette of the decision approving the start of expropriation procedures is relied on to decide whether the land is developed or not.
The Article refers the detailed provisions to the Regulations, and Article 19 sets out the conditions for replacement grant land. Anyone who owns grant land covered by a project and wishes to know his position may consult a lawyer specializing in real estate cases.
Practical example
Ali obtained government grant land in Abha and did not build or plant on it, then a road project carried out by a ministry covered it. Here Ali may be compensated with replacement grant land, because the body is governmental, the land is vacant and undeveloped, and its basis is a grant that still belongs to him.
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 Expropriation of Real Estate for Public Interest Law
Can I be compensated with grant land instead of money?
This is possible if the project owner is a government body, the land is vacant and undeveloped, and the basis of its ownership is a government grant that still belongs to the grantee.
What is meant by development on grant land?
Bringing about any agricultural, urban or other activity that changes the features of the site, whether for investment or other purposes.
When is the development status of the land determined?
The date of publication in the Official Gazette of the decision approving the start of expropriation procedures is relied on.
Articles this article refers to
More articles on Compensation with Substitute Grant Land
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.