Article 10 of the Saudi Real Estate Finance Law

This article aims to encourage investment in real estate securities, by making it possible to grant tax incentives. Its details:

• The means of granting: A decision of the Council of Ministers.
• The initiative: On the proposal of the Minister, who under Article 1 is the Minister of Finance.
• The subject of the incentive: Investment in real estate securities.

The text says "may", so the incentives are not automatic; they are not granted merely because the law was issued but require a decision of the Council of Ministers. The article does not specify the type, amount or conditions of the incentives, all of which are determined in the decision that may be issued.

To understand the context: the law distinguishes between the primary market (finance contracts between the beneficiary and the financier) and the secondary market (trading in the financier's rights arising from those contracts), as in Article 1. Article 11 allows financiers to refinance through real estate refinancing companies or through securities under the Capital Market Law. The tax incentives in this article are a tool to encourage investors in this type of securities.

Before it comes Article 9, under which the government guarantees the financial obligations arising from the Real Estate Development Fund's guarantees within what is approved for them.

An investor who wants to know whether a tax incentive that applies to them has been issued can consult a lawyer specializing in securities and finance.