Explanatory Memorandum for the Law of Allotment of Uncultivated Land

Explanatory Memorandum for the Law of Allotment of Uncultivated Land

  • The Kingdom of Saudi Arabia is experiencing a comprehensive renaissance in the agricultural field. Therefore, it was necessary to prepare for this renaissance with solid foundational pillars, including replacing the existing land allocation system with a system that ensures the agricultural land ownership achieves the social and economic objectives that the current government is keen to outline with awareness and wisdom. Hence, this law was established. The first article includes the conditions that must be met in the allocated land, and it is clear that the law has been keen to ensure sufficient guarantees to verify that the land will not be subject to dispute. It stipulates that the land must be free from individual and collective rights, whether ownership rights or lesser rights such as the right of allocation or preference over the land. Article five stipulates the formation of a committee whose sole task is to confirm the fulfillment of the aforementioned conditions.

  • The law has (....) that the aforementioned considerations may require an exception from the (....) stipulated, thus permitting the override of the boundaries by a decision of the Council of Ministers. Article Three stipulated the conditions that must be met by those eligible to be granted land, stating that the person must be a Saudi national, whether a natural or legal person, and exceptionally allowed the override of this condition by a decision of the Council of Ministers if it appears that overriding it serves the public interest. It also stipulated that the person must have legal capacity, as the grantee's ability to carry out legal transactions is necessary for the grant to achieve its objectives. Furthermore, it stipulated that the person must not have previously obtained land under the provisions of the law. This condition excludes those who have established ownership rights over the land, as proving ownership rights is only completed after proving the success in investing the land.

  • Article Seven stipulates the legal effects of allocation, and it is clear that the law considered a gradual approach in granting rights to allocated lands. During the specified investment period, the allocatee does not have ownership rights to the land but has the right to own it under the provisions of the law. He also has the right of priority over others, and it cannot be taken from him except within the limits outlined by the law.

  • In exchange for these rights, he has the duty to invest the land according to what the law determines. If he fails in this duty, the land may be expropriated from him and allocated to someone else. Since the grantee does not have ownership of the land but rather a right of allocation, and since the right of allocation is subject to restriction, the law prohibits its waiver except with written permission from the Minister of Agriculture and Water. It also restricts its transfer by inheritance, allowing the Minister of Agriculture to allocate it to one or more heirs to ensure the objectives of the allocation are achieved. Article Eight defines the powers of the Ministry of Agriculture in supervising and monitoring the allocated land and protecting its authorities in this regard. Article Nine organizes the final outcome of the allocation, which is the grantee's ownership of the land.