Article 9 of the Saudi Real Estate Finance Law
المادة 9 من نظام التمويل العقاري
The government guarantees fulfillment of the financial obligations arising from the Real Estate Development Fund's guarantees supporting real estate finance, within what is approved for them in the Fund's budget.
Official text (Arabic)
This article has not been amended since the law was issued.
تضمن الحكومة الوفاء بالالتزامات المالية التي تترتب على ضمانات صندوق التنمية العقارية لدعم التمويل العقاري، وذلك في حدود ما يعتمد لتلك الضمانات في ميزانية الصندوق.
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 9 explained in plain English
This article complements Article 8, under which the Real Estate Development Fund allocates part of its approved budget as guarantees and aid to support real estate finance for subsidy-eligible persons and housing associations.
If the Fund provides a guarantee, financial obligations may arise from it. Here this article provides:
- The guarantor: The government.
- What is guaranteed: Fulfillment of the financial obligations arising from the Fund's guarantees supporting real estate finance.
- The limit: Within what is approved for those guarantees in the Fund's budget.
This guarantee is therefore not absolute but is limited to the amounts approved for guarantees in the Fund's budget. Note that the article speaks specifically of guarantees and does not mention aid.
The practical effect of this article is that the Fund's guarantees are backed by a government commitment within the stated limits. The article does not explain the procedures for claiming under this guarantee or its conditions.
After it comes Article 10, which allows tax incentives for investment in real estate securities by Council of Ministers decision on the Minister's proposal.
To understand the effect of the guarantee on a particular finance contract, you can consult a lawyer specializing in banking and real estate finance.
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 9 of the Saudi Real Estate Finance Law
Does the government back the Real Estate Development Fund's guarantees?
Yes. The government guarantees fulfillment of the financial obligations arising from the Fund's guarantees supporting real estate finance.
Is the government's guarantee absolute?
No. It is within what is approved for those guarantees in the Fund's budget.
More articles on Real Estate Finance Support and Development Fund
- Article 8
The Real Estate Development Fund allocates part of its approved budget as guarantees and aid to support real estate finance for subsidy-eligible persons and housing associations, as the Implementing Regulations regulate.
يخصص صندوق التنمية العقارية جزءًا من ميزانيته المعتمدة ضمانات ومعونات لدعم التمويل العقاري لمستحقي الدعم وجمعيات الإسكان، وتنظم اللائحة كيفية ذلك.
- Article 10
The article allows the Council of Ministers, on the proposal of the Minister of Finance, to grant tax incentives for investment in real estate securities.
يجوز بقرار من مجلس الوزراء - بناءً على اقتراح من الوزير - منح حوافز ضريبية للاستثمار في الأوراق المالية العقارية.
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.