Article 28 of the Saudi Real Estate Investment Schemes Law

This article sets out the permitted ways to sell a real estate investment scheme's assets, which are:

1. Sale by public auction, where the assets are offered for open bidding.
2. Direct sale, either of the whole scheme or of part of it.
3. Any other method that the Implementing Regulations specify.

The wording "a scheme's assets shall be sold by one of the following methods" means that the sale is made by one of these methods, and the third method does not open the door to any method the licensee chooses, but only to what the Implementing Regulations specify.

The article does not say who chooses the method or what the conditions of each are, so no detail should be assumed that its text does not contain.

This article is linked to Article 27, which requires that before a scheme's assets are sold they be valued by accredited valuers in accordance with the Accredited Valuers Law and the Implementing Regulations' procedures, and which makes any act in breach void. It is also linked to Article 29, which makes the sale of the scheme in accordance with the provisions of the Law and the Implementing Regulations one of the cases in which a scheme ends.

For a shareholder, it is useful to know that the sale of their scheme's assets must be carried out by one of these methods. If a sale method or its procedures are objected to, you can consult a lawyer specializing in real estate cases.