Article 19 of the Saudi Real Estate Investment Schemes Law
المادة 19 من نظام المساهمات العقارية · الفصل الثالث: إدارة المساهمة العقارية
The article provides that a real estate investment scheme is run by a scheme manager appointed by the licensee, and refers the manager's conditions, requirements, powers, duties and responsibilities to the Implementing Regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
يدير المساهمة العقارية مدير المساهمة العقارية الذي يُعيّنه المرخص له. وتحدد اللائحة اشتراطات ومتطلبات مدير المساهمة العقارية وصلاحياته ومهماته ومسؤولياته.
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 19 explained in plain English
This article specifies who runs a real estate investment scheme:
- Management is carried out by the scheme manager, whom Article 1 defines as the person appointed to manage the scheme.
- The manager is appointed by the licensee.
The article refers to the Implementing Regulations to determine:
- The scheme manager's conditions and requirements.
- The manager's powers.
- The manager's duties.
- The manager's responsibilities.
This article does not explain in detail what the manager may or may not do; it only establishes that the manager exists and who appoints the manager.
This provision works together with other articles. Article 20 allows the licensee, the Authority and the assembly to remove the manager, as set out in the Implementing Regulations, if the manager abuses their powers or fails to perform their obligations. Article 18 also requires the licensee to appoint a certified accountant and an engineering consultant.
A shareholder has an interest in knowing who manages their scheme and what powers the manager has under the Implementing Regulations. If there are concerns about the performance of the management, you can consult a lawyer specializing in real estate cases.
Practical example
A company obtained a real estate investment scheme license in Tabuk, then appointed a specialist as scheme manager after verifying that the person met the requirements set out in the Implementing Regulations, to run the scheme under the company's supervision.
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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Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Mohammed bin Saleh Al-Qarawi Law and Notary Office, Riyadh
Frequently asked questions about Article 19 of the Saudi Real Estate Investment Schemes Law
Who appoints the manager of a real estate investment scheme?
The licensee appoints the manager.
Where are the powers of the scheme manager set out?
The Implementing Regulations set out the scheme manager's conditions, requirements, powers, duties and responsibilities.
Can the scheme manager be removed?
Yes. Article 20 allows the licensee, the Authority and the assembly to remove the manager, in accordance with the Implementing Regulations, if the manager abuses their powers or fails to perform their obligations.
More articles on Real Estate Scheme Manager
- Article 14
The article requires the licensee, subject to Article 19, to supervise the scheme manager's work and enable the manager to carry out its duties.
مع مراعاة ما نصت عليه المادة (التاسعة عشرة) من النظام، على المرخص له الالتزام بالإشراف على أعمال مدير المساهمة العقارية، وتمكينه من القيام بواجباته.
- Article 20
The article allows the licensee, the Authority and the assembly to remove the scheme manager, in accordance with the Implementing Regulations, if the manager abuses their powers or fails to perform their obligations, without prejudice to any penalty.
يحق للمرخص له وللهيئة وللجمعية عزل مدير المساهمة العقارية وفق ما تحدده اللائحة في حال إساءته استخدام صلاحياته أو إخلاله بتنفيذ التزاماته، ولا يخل ذلك بأي عقوبة
- Article 21
The article prohibits the licensee and the scheme manager from taking any decision or action involving an existing or potential conflict of interest, without prejudice to Article 14, and refers the handling of such cases to the Implementing Regulations.
دون إخلال بما نصت عليه المادة (الرابعة عشرة) من النظام، لا يجوز للمرخص له ولا لمدير المساهمة العقارية اتخاذ أي قرار أو إجراء إذا كان هناك تعارض مصالح قائم أو مح
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.