Article 10 of the Real Estate Ownership by Non-Saudis Law
المادة 10 من نظام تملك غير السعوديين للعقار
The article punishes violations of the Law or its regulations with a warning or a fine of up to 5% of the value of the real right, capped at SAR 10 million, and refers the table of violations to the regulations.
Official text (Arabic)
This article has not been amended since the law was issued.
1- دون إخلال بأي عقوبة أشد منصوص عليها في أي نظام آخر، يعاقب من يخالف أحكام النظام أو اللائحة بأي من الآتي:
أ- الإنذار.
ب- غرامة لا تزيد على (5 %) من قيمة الحق العيني محل المخالفة بما لا يزيد على (10.000.000) عشرة ملايين ريال.
2- تحدد اللائحة جدولاً بالمخالفات والعقوبات المقررة لها بناء على أحكام النظام واللائحة. على أن يراعى في تحديد العقوبة جسامة المخالفة وظروفها، وملابساتها، وآثارها.
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 10 explained in plain English
This article sets the general penalties for violating the provisions of the Law or the Implementing Regulations.
Penalties: the violator is punished with either of the following two penalties:
- A warning.
- A fine not exceeding 5% of the value of the real right subject of the violation, and not exceeding SAR 10,000,000.
So the fine has two caps together: a percentage of the value of the real right, and an upper limit in amount. If 5% of the value exceeds ten million, the fine does not exceed ten million.
Table of violations: the regulations set a table of violations and the penalties for them, and in setting the penalty the gravity of the violation, its circumstances, its context and its effects are taken into account. The article itself does not list the types of violations but leaves this to the regulations.
Harsher penalties: these penalties apply without prejudice to any harsher penalty provided in another law; if the act calls for a harsher penalty under another law, this article does not prevent applying it.
After this article comes Article 11, which provides for a committee to examine violations and impose the penalties in Article 10, with the right to object to its decisions before the Administrative Court. Anyone charged with a violation should consult a lawyer specialized in administrative or real estate matters.
Practical example
A non-Saudi company violated a provision of the regulations concerning a property worth SAR 300 million. 5% of the value is SAR 15 million, but Article 10 sets an upper limit of SAR 10 million for the fine, which cannot be exceeded, and the competent body may be content with a warning depending on the gravity of the violation and its circumstances.
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 10 of the Real Estate Ownership by Non-Saudis Law
What is the penalty for violating the non-Saudi real estate ownership law?
A warning, or a fine of no more than 5% of the value of the real right subject of the violation and not more than SAR 10 million.
What is the maximum fine?
SAR 10 million, and it may not exceed 5% of the value of the real right subject of the violation.
Where can I find the list of violations?
The article refers to the regulations, which set a table of violations and the penalties for them.
More articles on Violations of Non-Saudi Ownership and Penalties
- Article 11
The article creates one or more committees by decision of the Authority's board to examine violations and impose the Article 10 penalties, and allows objecting to their decisions before the Administrative Court within 60 days.
1- تشكل بقرار من مجلس إدارة الهيئة لجنة (أو أكثر) لا يقل عدد أعضائها عن (ثلاثة)، من المتخصصين في الأنظمة، وتتولى النظر في المخالفات وإيقاع العقوبات الواردة في ا
- Article 12
The article punishes a non-Saudi who deliberately gives false or misleading information that leads to ownership with a fine of up to 5% (capped at SAR 10 million) and sale of the real right, through the Public Prosecution and the competent court.
1- استثناءً مما تضمنته المادة (العاشرة) من النظام، ودون إخلال بأي عقوبة أشد منصوص عليها في أي نظام آخر؛ يعاقب غير السعودي الذي يقدم متعمداً معلومات غير صحيحة أو
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.

