Article 3 of the Saudi Expropriation of Real Estate for Public Interest Law
المادة 3 من نظام نزع ملكية العقارات للمصلحة العامة · الباب الأول: تعريفات وأحكام عامة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
لا تسري أحكام النظام على العقارات المملوكة للدولة أو لأحد أجهزتها.
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 3 explained in plain English
This Article defines the scope of the Law's application in terms of the type of property: the Law was made to protect private ownership when it is expropriated or temporarily occupied, so its provisions do not apply to real estate owned by the State or one of its bodies.
In practice, this means:
- If the property needed for the project is owned by the State or one of its bodies, the expropriation and compensation procedures set in this Law are not followed for it.
- The procedures and compensation in the Law are directed at real estate not owned by the State.
This Article is linked to Article 2, which requires the public interest and fair compensation for expropriation or temporary occupation, and to Article 4, which allows expropriation or temporary occupation procedures to be taken only if no State properties suffice for the purpose. The rule is therefore that State properties are used first, and individuals' properties are resorted to only when needed.
The Article did not state how State properties themselves are dealt with; that falls outside the scope of this Law.
Practical example
A government body needed land to build a school in a neighborhood of Dammam, and it turned out the suitable land is owned by another government body. In this case the expropriation and compensation procedures in this Law are not applied, because the property is owned by the State.
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 3 of the Saudi Expropriation of Real Estate for Public Interest Law
Does the expropriation law apply to State land?
No. The Article provides that the Law's provisions do not apply to real estate owned by the State or one of its bodies.
Why were State properties excluded from the Law?
The text does not state the reason, but it limits the application of the Law's provisions to real estate not owned by the State or its bodies.
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 2
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.
لا يجوز نزع ملكية أي عقار أو وضع اليد المؤقت عليه إلا للمصلحة العامة، ومقابل تعويض عادل؛ وذلك وفقاً لأحكام النظام واللائحة.
- 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.