Article 32 of the Saudi Real Estate Investment Schemes Law
المادة 32 من نظام المساهمات العقارية · الفصل السادس: المخالفات والعقوبات
The article punishes violations of the Law or the Regulations with a warning, license suspension of up to one year, license cancellation, a fine of up to SAR 10,000,000, or a ban from scheme work of up to 10 years.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال بما نصت عليه المادة (الخامسة والثلاثون) من النظام، يعاقب كل من يخالف أيًّا من أحكام النظام أو اللائحة بواحدة أو أكثر من العقوبات الآتية:
1- الإنذار.
2- إيقاف الترخيص مدة لا تزيد على (سنة).
3- إلغاء الترخيص.
4- غرامة لا تزيد على (10,000,000) عشرة ملايين ريال.
5- منع المرخص له أو مدير المساهمة العقارية من القيام -مستقبلاً- بأي عمل مرتبط بالمساهمات العقارية لمدة لا تتجاوز (10) عشر سنوات.
ويصدر المجلس جدولاً يتضمن تصنيفاً للمخالفات والعقوبات المقررة لها بناءً على ما نصت عليه هذه 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 32 explained in plain English
This article sets out the administrative penalties for anyone who violates any provision of the Law or the Implementing Regulations, and one or more of them may be imposed:
- A warning.
- Suspension of the license for a period not exceeding one year.
- Cancellation of the license.
- A fine not exceeding SAR 10,000,000.
- A ban on the licensee or the scheme manager from carrying out, in the future, any work connected with real estate investment schemes for a period not exceeding 10 years.
Note that these are maximum limits; the fine, the suspension and the ban do not exceed the stated limit. The Board, meaning the Authority's board, issues a table classifying the violations and the penalty set for each on the basis of this article, so the table shows the penalty for each violation.
The article begins with the phrase "without prejudice to what Article 35 provides", which is the article that punishes with imprisonment for a period not exceeding 3 years anyone who violates the provisions of Articles 4, 21, 27 and 30, with the violation referred to the Public Prosecution for investigation and prosecution before the competent court. The penalties set out here therefore do not prevent the imprisonment penalty from being applied in those cases.
Article 33 then provides that a committee formed by the head of the Authority is the body that considers violations and imposes these penalties according to the type of violation, its seriousness and its impact, and Article 31 specifies who detects violations. Anyone against whom a penalty has been issued or who faces an accusation of a violation can consult a lawyer specializing in real estate cases or one specializing in administrative cases.
Practical example
It emerged that a licensed company in Riyadh had not complied with one of the provisions of the Implementing Regulations. The committee considered the violation and decided, according to the violations table, to warn the company and impose a fine within what Article 32 allows, not exceeding SAR 10 million.
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 32 of the Saudi Real Estate Investment Schemes Law
What are the penalties for violating the Real Estate Investment Schemes Law?
A warning, suspension of the license for up to one year, its cancellation, a fine of up to SAR 10 million, or a ban on the licensee or manager from scheme work for up to 10 years, one or more of them.
What is the maximum fine for violating the Real Estate Investment Schemes Law?
The fine does not exceed SAR 10,000,000.
Can more than one penalty be combined?
Yes. The article provides for punishment by one or more of the listed penalties.
Does the Law include an imprisonment penalty?
Yes. Article 35 punishes with imprisonment for up to 3 years anyone who violates the provisions of Articles 4, 21, 27 and 30.
Articles this article refers to
More articles on Scheme Violations and Penalties
- Article 31
The article assigns the detection of violations of the Law or the Regulations to employees of the Authority or of bodies it uses, and lets them enter sites and the licensee's premises, seize documents and call on security bodies.
يتولى ضبط ما يقع من مخالفات لأحكام النظام أو اللائحة موظفون من الهيئة ومن أي جهة أخرى ترى الهيئة الاستعانة بموظفيها، يصدر بتعيينهم قرار من الرئيس بعد موافقة جها
- Article 33
The article provides for one or more committees formed by the head of the Authority, of at least three members including a Sharia or legal adviser, to consider violations and impose the Article 32 penalties.
تُكوّن بقرار من رئيس الهيئة لجنة أو أكثر لا يقل عدد أعضائها عن ثلاثة ويسمى أحدهم رئيساً، ويكون من بينهم مستشار شرعي أو نظامي؛ تتولى النظر في المخالفات وإيقاع ال
- Article 35
The article punishes with imprisonment for up to three years anyone who violates Articles 4, 21, 27 and 30, with referral to the Public Prosecution for investigation and prosecution before the competent court.
دون إخلال بأي عقوبة منصوص عليها في أي نظام آخر، يعاقب بالسجن مدة لا تزيد على (ثلاث) سنوات، كل من يخالف أيًّا من أحكام المواد الآتية: (الرابعة)، و(الحادية والعشر
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.