Article 6 of the Saudi Expropriation of Real Estate for Public Interest Law
المادة 6 من نظام نزع ملكية العقارات للمصلحة العامة · الباب الأول: تعريفات وأحكام عامة
A 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.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يستحق مَنْ نُزعت ملكية عقاره تعويضاً وذلك وفقاً للآتي:
أ- أن تكون قيمة التعويض بناءً على القيمة السوقية للعقار.
ب- أن يضاف إلى القيمة السوقية -المشار إليها في الفقرة الفرعية (أ) من الفقرة (1) من هذه المادة- عوضٌ عن نزع الملكية نسبته (20%) من القيمة السوقية للعقار.
ج- مقابل الأضرار الناشئة نتيجة إجراءات نزع الملكية.
2- يستحق مَنْ وُضعت اليد على عقاره تعويضاً وذلك وفقاً للآتي:
أ- ألا تقل قيمة التعويض عن أجرة المثل.
ب- أن يضاف إلى أجرة المثل -المشار إليها في الفقرة الفرعية (أ) من الفقرة (2) من هذه المادة- عوضٌ عن وضع اليد المؤقت نسبته (20%) من أجرة المثل.
ج- مقابل الأضرار الناشئة نتيجة وضع اليد المؤقت.
3- تحدد معايير وأدلة التقييم الأحكام الخاصة بهذه 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 6 explained in plain English
This Article sets the elements of compensation in both cases, expropriation and temporary occupation.
First: Compensation for expropriation consists of three elements:
- The market value of the property, which is the basis of the compensation.
- A 20% payment for expropriation of the market value, added to it.
- Compensation for damages arising from the expropriation procedures.
Second: Compensation for temporary occupation consists of:
- An amount not less than the fair rental.
- A 20% payment for occupation of the fair rental, added to it.
- Compensation for damages arising from the temporary occupation.
Paragraph 3 provides that the valuation standards and guides determine the provisions specific to this Article, which according to Article 1 are the standards and guides approved by the Saudi Authority for Accredited Valuers. The Article does not state how compensation for damages is calculated; that is left to those standards.
These elements apply the principle of fair compensation, and come after the public interest is defined in Article 5. Anyone who believes the compensation assessed for him does not include these elements may consult a lawyer specializing in real estate cases.
Practical example
Khalid's land in Riyadh is expropriated for a road project, and its market value is assessed at SAR 1 million. Under the Article, Khalid is entitled to SAR 1 million, plus SAR 200,000 as a payment for expropriation (20%), together with compensation for any damages arising from the expropriation procedures.
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 6 of the Saudi Expropriation of Real Estate for Public Interest Law
What is the additional compensation percentage in expropriation?
A payment for expropriation of 20% of the market value is added to the property's market value, in addition to compensation for damages.
How is compensation for temporary occupation calculated?
It is not less than the fair rental, plus 20% of the fair rental, and compensation for damages arising from the temporary occupation.
Who determines the details of calculating compensation?
The Article provides that the valuation standards and guides determine the provisions specific to it, and these are the ones approved by the Saudi Authority for Accredited Valuers.
More articles on Compensation for Expropriation
- 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 15
A 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.
1- تراجع التقارير -المعدة وفقاً للفقرة (3) من المادة (الرابعة عشرة) من النظام- لجنة تُشكل في الهيئة، تُكوَّن من ثلاثة مقيمين معتمدين، على أن يُراعى ألا يقل تصني
- Article 16
The 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.
يكون التعويض عن العقارات المقرر نزع ملكيتها نقداً، ويجوز أن يكون التعويض أو جزء منه عينياً إذا رضي مالك العقار المقرر نزع ملكيته بذلك، ويشمل ذلك التعويض بعقار ب
- Article 21
If 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.
إذا اختلفت مساحة العقار المحددة في مستندات إثبات الملكية عن المساحة الفعلية للعقار بحسب وضعه على الطبيعة، يقدَّر التعويض بحسب المساحة الأقل، وذلك دون إخلال بحقو
- Article 22
The 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.
إذا اقتصر نزع الملكية على جزء من العقار فيُتبع في ذلك ما يلي: 1- تُقدر قيمة مساحة الجزء المنزوعة ملكيته والبناء والغراس المقام عليه؛ إذا كان الجزء الباقي من الأ
- Article 23
The 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.
1- تحدد الهيئة، بالاتفاق مع الجهة صاحبة المشروع، تاريخ إخلاء العقارات المقرر نزع ملكيتها، وتُبلِغ الهيئة مالكي العقارات المقرر نزع ملكيتها بذلك. 2- تُستكمل إجرا
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.