The following words and phrases – wherever they appear in this Law – shall have the meanings indicated next to them unless the context requires otherwise:
Tourist Real Estate Units: Hotels, furnished apartments, resorts, and other units prepared for tourist accommodation, including tourist real estate units located in Mecca and Medina.
Time Sharing: The right of a person to benefit from a tourist real estate unit for a specified period, or a period that can be determined within the year under a time-sharing contract.
Time Sharing Contract: A contract, or a set of contracts concluded for a specific monetary amount, for a specified period or a period that can be determined within the year – recurring for at least three years – under which a right to benefit related to the use of one or more real estate units is established, or waived, or any other right.
Marketing: The effort to persuade or attract a natural or legal person to conclude a time-sharing contract on a tourist real estate unit – in accordance with the provisions of this Law – using any means of persuasion or attraction, including advertising, presentation, gifts, contests, or prizes.
Real Estate: A building or part of a fixed building designated for residential use, to which the right subject to the contract pertains.
The Ministry: Ministry of Tourism.
The Buyer: A natural or legal person to whom the right subject to the time-sharing contract is transferred, or that right to benefit from the tourist real estate unit is established for their benefit, through transactions covered by this Law.
The Seller: A natural or legal person who establishes the right to benefit from the tourist real estate unit subject to the time-sharing contract commercially, or waives it, or undertakes to waive it, through transactions covered by this Law.
Term: A form of financial facilitation.
Regulation: The implementing regulation of this Law.

• 1- The activity of timeshare or marketing it shall not be practiced without obtaining a license from the Authority, in accordance with the conditions set forth in the Regulation.

• 2- It is prohibited to announce the timeshare activity or market it unless such announcement or marketing includes the following:

  •  A) The license number of the Authority for the announcing entity.

  • B) The possibility of obtaining the document referred to in paragraph (1) of (Article Three) of this Law, and the location where it can be obtained.

• 1- The provisions contained in this Law apply to time-sharing Contracts concluded in the Kingdom of Saudi Arabia. They also apply to time-sharing Contracts concluded outside the Kingdom of Saudi Arabia if the time-sharing property is located within the Kingdom.

• 2- The following conditions must be met in the time-sharing Contract prepared by the seller:

  •  A- It must be in writing.

  • B- It must include the details specified in the Regulation.

  • C- The Contract and the document referred to in paragraph (1) of Article (3) of this Law must be drafted in Arabic, without prejudice to their translation into other languages, provided that the Arabic version of the Contract is the authoritative one.

• 3- Non-Saudis are prohibited - in accordance with the provisions of this Law - from the following:

  •  A- Engaging in time-sharing activities or marketing them in the cities of Mecca and Medina.

  • B- Acquiring any rights under time-sharing Contracts other than through inheritance for tourist real estate units located in the cities of Mecca and Medina, and any transaction contrary to this shall not be recognized.

• 1- Without prejudice to any right acquired by the buyer under the laws regarding the nullity of contracts, the buyer has the option to:

  •  A- Withdraw from the timeshare contract without providing any reason, within ten days from the date of signing by both parties or from the date of their signing of any binding preliminary document. If the tenth day falls on a public holiday, the period is extended to the first working day following it.

  • B- Cancel the timeshare contract within three months starting from the date of signing by both parties or from the date of their signing of any binding preliminary document, provided that the contract does not include the information specified in paragraph (1) of Article (3) of this law at the time of signing the contract or document. If that information is provided within those three months, the buyer's withdrawal period stipulated in paragraph (A) of this article begins from the date of providing the information.

  • C- Withdraw from the timeshare contract without providing any reason during the ten days following the expiration of the three months specified in paragraph (B) of this article, if the information specified in paragraph (1) of Article (3) of this law was not provided during the aforementioned three-month period.

• 2- If the buyer wishes to withdraw from or cancel the timeshare contract in accordance with the provisions of paragraph (1) of this article, he must – within the specified period for that – notify the other party to the contract or its representative in writing at the address specified in the contract, in accordance with the form and method specified in the regulation. The notice shall be deemed to have been given within the allowed period if the date of sending it precedes the expiration of that period.

• 3- The buyer shall not bear – if he withdraws from or cancels the contract in accordance with the provisions of paragraph (1) of this article – any of the seller's costs and expenses related to the contract, provided that it may be agreed that the buyer bears a marketing percentage – if the marketer is not the seller and is licensed by the authority – not exceeding (1%) or a fixed amount not exceeding five hundred riyals, whichever is less, in accordance with what is determined by the regulation.

• 4- Subject to the provisions of paragraph (3) of Article (4) of this law, the buyer's right in the timeshare contract shall transfer to his heirs after his death, and the buyer may sell his right in the contract or waive it to others, or gift it, or bequeath it, and other related rights.

• No advance payment shall be required prior to the end of the period during which the buyer may withdraw from or revoke the contract, pursuant to Article 5(1) of this Law.

• If the price of the time-share contract is fully or partly covered by a deferred payment granted by the seller to the buyer or granted to the buyer by a third party - on the basis of a deferred payment agreement between the third party and the seller - and if the buyer withdraws from or revokes the contract pursuant to Article 5(1) of this Law, the deferred payment agreement shall be deemed revoked, without any obligation or liability on the part of the buyer. The Regulations shall set forth the regulatory provisions thereof.

• Any assignment by the buyer to the seller of any of the rights granted thereto under this Law or relieving him from any obligations arising out of this Law shall be deemed void.

1- Employees – appointed by a decision from the Chairman of the Authority – shall be responsible for monitoring the performance of practitioners engaged in time-sharing activities, verifying compliance with the conditions and regulations for this activity. They have the authority to access records, receive complaints, interrogate employees in the establishment subject to inspection, and obtain the information they request. They possess judicial authority in this regard, and if they find any violations, they must document them and refer them to the committee specified in paragraph (1) of Article (10) of this law.
2- It is prohibited to prevent inspectors from performing their duties as stipulated in this article, and the owners of the establishments – subject to inspection – must cooperate with them and provide the records to them.

1- A committee or several committees shall be formed by a decision from the Chairman of the Board of Directors of the Authority, consisting of no less than three members, one of whom must be a legal advisor, to consider violations of the provisions of this law and to impose the penalties stipulated therein. The decisions of this committee shall be approved by the Secretary-General of the Authority, and the regulation shall specify how this committee operates and the rewards for its members. This does not prejudice the right of the aggrieved person to request compensation for any damage suffered as a result of violations of the provisions of this law.
2- An appeal may be filed against the decisions of the committee before the Board of Grievances within (sixty) days from the date of notification of the decision.