• For the purposes of applying the provisions of this Law, the following words and terms shall have the meanings set forth opposite each of them, unless the context requires otherwise:

• 1- Law: Law on Expropriation of Real Estate for Public Interest and Temporary Taking Possession of Real Estate.

• 2- Regulation: The Implementing Regulation of the Law.

• 3- Authority: The State Properties General Authority.

• 4- Council: The Board of Directors of the Authority.

• 5- Governor: The Governor of the Authority.

• 6- Project Owner Entity: Any government agency, company, or nonprofit association of public benefit (the Association); responsible for executing work aimed at achieving a public interest in accordance with the Law.

• 7- Government Agency: Any ministry, department, public institution, public authority, or any independent public entity in the Kingdom, or any of its affiliated entities.

• 8- Supervising Entity: The government agency supervising the activity of the project owner entity when it is a company or association.

• 9- Real Estate: The land and everything fixed thereto that cannot be moved without damage, including buildings, plantations, and the like that are inseparable from the land.

• 10- Project Plan: An engineering drawing showing the real estate designated for expropriation or temporary taking possession.

• 11- Survey Report: A technical report clarifying the boundaries of the real estate designated for expropriation or temporary taking possession, its lengths, total area, geographic coordinates, and the angles of all its corners.

• 12- Accredited Valuer: A natural or legal person licensed to practice the profession of valuation.

• 13- Valuation Standards and Guidelines: The standards and guidelines approved by the Saudi Authority for Accredited Valuers.

No property may be expropriated or temporarily seized except for the public interest, and in return for fair compensation; in accordance with the provisions of the law and the regulation.

The provisions of the law do not apply to real estate owned by the state or any of its agencies.

Expropriation procedures or temporary possession of the real estate shall not be taken except in the absence of state-owned real estate that fulfills the purpose.

• For the purposes of applying the law, public interest means everything that achieves a general benefit of development or prosperity in which the interest of society outweighs any private interest belonging to a natural person, a legal entity, or a government body, and everything that prevents public harm from disasters, epidemics, and the like. This includes carrying out any of the following works:

  • 1- Projects for the development of the Two Holy Mosques facilities and matters related to Hajj, Umrah, or visitation rituals.

  • 2- Projects for roads, streets, transportation lines, and public land, sea, and air transportation facilities.

  • 3- Projects for urban planning and development, and the establishment of mosques, parks, social, educational, and health service buildings, and the like.

  • 4- Projects for power generation, water, electricity, gas, petroleum, sewage, flood drainage, communications, and government radio and television broadcasting.

  • 5- Projects for drilling, exploration, mining, and related activities.

  • 6- Projects for the preservation of environmental reserves, wildlife, and the preservation of the state's cultural, historical, and human heritage.

  • 7- Projects for internal security and the establishment of military facilities.

  • 8- Any other works stipulated in other laws as achieving public interest.

  • 9- Any other works determined to achieve public interest by a decision of the Council of Ministers.

• 1- The owner whose property has been expropriated is entitled to compensation according to the following:

  • A- The compensation value shall be based on the market value of the property.

  • B- An amount shall be added to the market value - referred to in subparagraph (A) of paragraph (1) of this article - as compensation for expropriation at a rate of (20%) of the market value of the property.

  • C- For damages resulting from the expropriation procedures.

• 2- The owner whose property has been taken possession of is entitled to compensation according to the following:

  • A- The compensation value shall not be less than the rental value.

  • B- An amount shall be added to the rental value - referred to in subparagraph (A) of paragraph (2) of this article - as compensation for temporary possession at a rate of (20%) of the rental value.

  • C- For damages resulting from the temporary possession.

• 3- The standards and evaluation guides shall determine the provisions related to this article.

• The project owner entity - in coordination with the supervising entity as applicable - shall submit a request to the Authority for approval to commence the procedures of expropriation or temporary possession of the real estate, in accordance with the following:

• 1- The request for approval to commence expropriation procedures must include the following:

  • A- Project plan and survey map.

  • B- Determination of the initial estimated cost of expropriation. The regulation specifies the necessary standards for this.

  • C- Submission of evidence proving the following:

    • 1) Approval of the project costs in the budget of the project owner entity if it is a government entity.

    • 2) Financial solvency if the project owner entity is a company or association.

    • The regulation specifies the controls related to this paragraph.

  • D- A timeline for project implementation.

  • E- A study on the expected social, economic, and security impacts resulting from the expropriation.

• 2- The request for approval to commence temporary possession procedures must include the following:

  • A- Project plan and survey map.

  • B- Determination of the initial estimated cost of temporary possession. The regulation specifies the necessary standards for this.

  • C- Submission of evidence proving the following:

    • 1) Approval of the project costs in the budget of the project owner entity if it is a government entity.

    • 2) Financial solvency if the project owner entity is a company or association.

  • The regulation specifies the controls related to this paragraph.

  • D- The estimated duration of the temporary possession of the real estate.

• 1- The submitted claim shall be studied in accordance with Article (7) of the Law by one or more committees formed within the Authority called (Committee for Expropriation of Real Estate and Temporary Possession of Real Estate), chaired by the Governor - or his deputy from among the members - and including a representative from each of: the Authority, Ministry of Interior, Ministry of Finance, Ministry of Economy and Planning, Ministry of Municipal and Rural Affairs and Housing, Ministry of Energy, Ministry of Investment, Ministry of Justice, and the Expenditure and Projects Efficiency Authority. Its members shall hold a rank not less than (thirteenth) or its equivalent. The committee may invite one or more representatives from the project owner entity and the supervising entity - if any - to attend its meetings without voting rights.

• 2- The submitted claim shall be studied in accordance with Article (7) of the Law in light of the following:

  • A- Verifying the project's connection to achieving a public interest in accordance with the Law.

  • B- Verifying the availability of project costs in the budget of the project owner entity or the financial solvency - as applicable - including reserving the costs according to the mechanism determined by the Regulation.

  • C- Ensuring the absence of state-owned real estate that fulfills the purpose.

  • D- The appropriate nature of compensation for expropriation (monetary/in-kind).

  • E- The social, economic, and security impacts of the project.

• 3- In case of differing opinions between the project owner entity or the supervising entity - if any - and the Committee for Expropriation of Real Estate and Temporary Possession of Real Estate, the concerned entity shall refer the claim to the Prime Minister for a decision.

• 4- Meetings of the Committee for Expropriation of Real Estate and Temporary Possession of Real Estate shall be held in the presence of its chairperson - or his deputy from among the members - and the majority of its members, and its decisions shall be made by the approval of a two-thirds majority.

• 5- The Committee for Expropriation of Real Estate and Temporary Possession of Real Estate shall obtain the information and documents it requests to accomplish its work through a request submitted to the Authority, and all entities shall cooperate with the Authority in this regard.

• 6- The Council shall issue the rules of procedure for the Committee for Expropriation of Real Estate and Temporary Possession of Real Estate.