Article 9 of the Saudi Real Estate Investment Schemes Law
المادة 9 من نظام المساهمات العقارية · الفصل الثاني: الترخيص والاشتراكات
The article divides a scheme's capital into shares equal in value and rights, limits each participant's liability to the shares they own, and assigns regulation of the register of participants to the Capital Market Authority.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يقسم رأس مال المساهمة العقارية إلى حصص متساوية القيمة والحقوق، وتكون مسؤولية المساهمين في حدود ما يملكون من حصص في المساهمة العقارية.
2- تقوم هيئة السوق المالية بتنظيم سجل المساهمين الخاص بالمساهمة العقارية.
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 contains two basic provisions for the participant:
First: shares and liability. The scheme's capital is divided into shares equal in value and rights, so no share is distinguished from another in its value or the rights attached to it. The liability of participants is limited to the shares they own; that is, the most a participant bears is what they hold in shares, and under this text their liability for the scheme's obligations does not extend to their other assets.
Second: the register of participants. The Capital Market Authority regulates the register of participants for the scheme. Under Article 1, this register is where the names of participants, their shares and any change in their ownership are entered, so it is the reference for proving who owns what.
This is linked to Article 8, which allows participation with a cash or in-kind share; whatever the form of participation, shares remain equal. It is also linked to Article 10, which prohibits lending from the capital and regulates borrowing against the scheme's assets.
A practical tip for participants: make sure your name and share are entered in the register of participants, because it is the register that reflects your ownership. If there is a dispute about shares or liability, you may consult a lawyer specialized in real estate matters.
Practical example
Fahd bought 20 shares in a real estate investment scheme in Khobar, and the scheme later faced financial obligations to a contractor. Under Article 9, Fahd's liability is limited to the shares he owns, and the number of his shares is proven by their entry in the register of participants regulated by the Capital Market Authority.
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 Investment Schemes Law
Does a participant bear a real estate investment scheme's debts from their own money?
The article provides that participants' liability is limited to the shares they own in the scheme.
Do the rights of shares in a scheme differ?
No, the capital is divided into shares equal in value and rights.
Who regulates the register of participants?
The Capital Market Authority regulates the register of participants for the real estate investment scheme.
More articles on Scheme Capital and Shares
- Article 6
The article provides that a scheme's capital, on which the number and amount of shares are calculated, is set by the estimated cost from a licensed valuation entity after the approval of the Authority and the Capital Market Authority.
يحدد رأس مال المساهمة العقارية، الذي على أساسه يُحتسب عدد الحصص ومقدارها من خلال التكلفة التقديرية من قبل جهة تقييمية مرخصة، بعد موافقة الهيئة وهيئة السوق المال
- Article 7
The article allows the Authority to require a reserve amount, not exceeding 15% of the estimated cost, to be added to a scheme's capital, which may be used only with the participants' assembly's approval.
للهيئة اشتراط إضافة مبلغ احتياطي إلى رأس مال المساهمة العقارية بما لا يتجاوز (15%) من تكلفتها التقديرية، وذلك لمقابلة أي مصاريف إضافية غير متوقعة. ويكون التصرف
- Article 8
The article allows a participant to join a real estate investment scheme with an in-kind or cash share, and refers to the regulations the type of in-kind share and its conditions.
يحق للمساهم الاشتراك في المساهمة العقارية، بحصة عينية أو نقدية. وتحدد اللائحة نوع الحصة العينية والشروط الواجب توافرها فيها.
- Article 10
The article prohibits lending from a scheme's capital and allows borrowing against the scheme's funds or assets if the scheme agreement includes this, under the conditions the regulations set.
لا يجوز الإقراض من رأس مال المساهمة العقارية، ويجوز الاقتراض بضمان أموال أو أصول المساهمة العقارية على أن يتم تضمين اتفاقية المساهمة ذلك، وتحدد اللائحة الاشتراط
- Article 11
The article makes a scheme's net assets owned by the scheme and bars creditors of participants, the licensee and the scheme manager from any right in its funds or assets except what they own in shares.
يكون صافي أصول المساهمة العقارية من أصول ثابتة نقدية وعينية أو حقوق لدى الغير؛ مملوكة للمساهمة العقارية. وليس لدائني المساهمين أو المرخص له أو مدير المساهمة الع
- Article 12
The article requires the licensee's percentage in the scheme to be no less than the regulations specify and held until the scheme ends, and allows other participants to dispose of their shares under the regulations' conditions.
1- يجب ألا تقل نسبة المرخص له في المساهمة العقارية عن النسبة التي تحددها اللائحة، وأن يحتفظ لنفسه بملكية هذه النسبة حتى انقضاء المساهمة العقارية. 2- يجوز لبقية
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.