Article 2 of the Saudi Expropriation of Real Estate for Public Interest Law
المادة 2 من نظام نزع ملكية العقارات للمصلحة العامة · الباب الأول: تعريفات وأحكام عامة
No 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.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز نزع ملكية أي عقار أو وضع اليد المؤقت عليه إلا للمصلحة العامة، ومقابل تعويض عادل؛ وذلك وفقاً لأحكام النظام واللائحة.
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 sets the basic rule on which the whole Law rests: ownership of real estate is protected, and it may not be interfered with by expropriation or temporary occupation unless two conditions are met together:
- It must be for the public interest, not for a private interest.
- It must be in return for fair compensation that the owner of the property receives.
The Article adds a third condition concerning the method: that it be done in accordance with the provisions of the Law and the Regulations, that is, by following the procedures laid down by the Law and its Implementing Regulations, and not in any other way.
The rule covers two forms:
- Expropriation: the property passes permanently from its owner.
- Temporary occupation: using the property for a fixed period without transferring its ownership.
The terms used here, such as "real estate" and "the Regulations", are understood in the meanings set in Article 1. Article 3 completes this framework by stating that the Law's provisions do not apply to real estate owned by the State or one of its bodies.
Anyone who believes his property is being expropriated or occupied without these conditions being met, or that the compensation offered is not fair, would do best to consult a lawyer specializing in real estate cases.
Practical example
Ahmed received a notice that part of his land in Medina falls within a public road widening project. This project serves a public interest, but the Article guarantees Ahmed that his land will not be expropriated except in return for fair compensation and by following the procedures set by the Law and its Regulations.
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 Expropriation of Real Estate for Public Interest Law
Can my property be expropriated without compensation?
No. The Article requires that expropriation or temporary occupation be in return for fair compensation, and in accordance with the provisions of the Law and the Regulations.
Can property be expropriated for the benefit of a person or company?
The Article allows expropriation or temporary occupation only for the public interest.
What is the difference between expropriation and temporary occupation?
Expropriation transfers the property from its owner, whereas temporary occupation is using the property for a fixed period; both require the public interest and fair compensation.
More articles on Expropriation Definitions and General Provisions
- Article 1
The 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.
لأغراض تطبيق أحكام هذا النظام، يقصد بالكلمات والمصطلحات الآتية، المعاني الموضحة أمام كل منها، ما لم يقتض السياق غير ذلك: 1- النظــــــام: نظام نزع ملكية العقارا
- Article 3
The 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.
لا تسري أحكام النظام على العقارات المملوكة للدولة أو لأحد أجهزتها.
- Article 4
Expropriation or temporary occupation procedures are taken only if no State properties suffice for the purpose.
لا تُتخذ إجراءات نزع ملكية العقار أو وضع اليد المؤقت عليه إلا في حال عدم وجود عقارات للدولة تفي بالغرض.
- Article 37
The 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.
يحل النظام محل نظام نزع ملكية العقارات للمنفعة العامة ووضع اليد المؤقت على العقار الصادر بالمرسوم الملكي رقم (م / 15) وتاريخ 11 / 3 / 1424هـ، ويلغي كل ما يتعارض
- Article 38
The 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.
تُعد الهيئة -بالتنسيق مع وزارة الاستثمار وهيئة كفاءة الإنفاق والمشروعات الحكومية- اللائحة، وتعتمد من المجلس، وتصدر بقرار من مجلس الوزراء خلال (مائة وعشرين) يوما
- Article 39
The Expropriation of Real Estate for Public Interest Law takes effect 120 days after its publication in the Official Gazette.
يعمل بالنظام بعد (مائة وعشرين) يوماً من تاريخ نشره في الجريدة الرسمية.
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.