• Ministries, government agencies, and other public corporate entities may take private property for public use upon payment of just compensation, after establishing the non-availability of state-owned land and real property required for the project. The taking of property may only be for the execution of projects approved in the Budget.

• No compensation shall be made under this Law if the property to be taken, in whole or part, is conditional upon reclamation but was not, at the time of planning the project, reclaimed in accordance with applicable reclamation conditions, provided that the Appraisal Committee referred to in Article 7 considers offering the owner just compensation for any damage incurred.

• Compensation shall be made for property taken for constructing main road networks or planning, in accordance with the following:

  • First: Lands within the development-protection zone:

    • a) In case of lands from which the free statutory deduction percentage had been taken, the owner shall be compensated for any further taking beyond said percentage.

    • b) In case of lands from which part of the statutory percentage had been taken, the owner shall not be compensated for any further taking if the total area of previous and later takings does not exceed the statutory percentage, and the remainder thereof, after both takings, is 10,000 square meters or more; otherwise, the owner shall be compensated for the difference if the remainder thereof is less than that.

    • c) In case of lands from which the statutory percentage had not been taken, the owner shall not be compensated for any taking not exceeding said percentage, provided that the remainder thereof, after the taking, is 10,000 square meters or more; otherwise, the owner shall be compensated for the difference if the remainder thereof is less than that.

    • d) If a landowner requests the subdivision or planning of a land in accordance with applicable laws and directives, the owner shall not be compensated for any taking made for that purpose, provided that the total area of previous, if any, and later takings does not exceed the statutory percentage for the whole area, unless exceeding said percentage was carried out upon the owner's request.

    • e) If the owner of a parceled out lot of previously planned land requests subdivision of said lot into smaller pieces thus requiring one or more roads to be laid in service thereof, said owner shall not be compensated.

    • f) There shall be compensation for land areas expropriated of buildings and farms regardless of the area thereof, as well as for the buildings and plants. If the owner of said lands requests the subdivision or planning thereof in accordance with the laws and directives, said owner shall not be compensated for expropriations within the statutory percentage, nor for expropriations exceeding said percentage if so requested by the owner.

  • Second: Lands outside the development-protection zone:

    • a) As for lands of areas not exceeding 10,000 square meters as well as buildings and farms, regardless of their areas, there shall be compensation for expropriated parts of said lands as well as for the buildings and plants. No compensation shall be offered for parts expropriated from said lands for the purpose of subdivision in accordance with laws and directives if so requested by the owner. This shall be within the statutory percentage set for real property within the development-protection zone, unless exceeding said percentage is so requested by the owner.

    • b) As for lands of areas exceeding 10,000 square meters, there shall be no compensation for parts expropriated, within the 12% limit, for the purpose of constructing main roads, provided that the remaining area after expropriation is 10,000 square meters or more. If the remaining area is less than that, the difference in area shall be compensated for. If said land is planned in accordance with laws and directives, paragraphs (b, d, and e) of clause (First) shall apply.

  • Third: Cities, villages, and rural settlements with no development-protection zones:

    • The Ministry of Municipal and Rural Affairs shall establish regulations with regards to planning and building in said areas. Said directives shall specify the development-protection zone thereof to be used as a basis for the aforementioned distinction.

With due regard to the provisions of Article Three, the implementation of public utility lines in streets and roads and their rights-of-way, or on lands owned by the state, shall be carried out. If this is not possible and it is necessary to implement public utility lines on private properties, it shall be done with the least possible damage, with fair compensation paid in accordance with this Law after agreement with the Ministry of Municipal and Rural Affairs and the General Panel regarding the routes of these utilities to align with the routes of streets and roads in the future, as required by the public interest. It is also required to annotate the property deeds and their existing records with respect to these utilities.

• 1. The decision approving commencement of expropriation of real property for public use shall be issued by the competent minister, head of the relevant government agency, or board of the relevant public corporate entity, or whomever they designate; provided that the decision is attached with a copy of the plan of the project whose execution requires expropriation. Municipalities, notaries public, and other competent agencies shall be notified of said decision. The decision shall include an invitation to the agencies referred to in Articles 6 and 7 to name their representatives within a period not exceeding 15 days.

• 2. The approval decision shall be published in the Official Gazette and two daily newspapers circulated in the relevant province. Copies of said announcement shall be posted in the premises of the agency owning the project, the project site, the court, the governorship of the province, county, or district, and at the premises of the relevant municipality.

• 1. As of the date of notification of the decision approving commencement of expropriation procedures, no land in the plan of the project for which expropriation is proposed may be subdivided nor a property merged with another, nor may licenses be granted to build thereon.

• 2. The condition of the land at the publication date of the decision approving commencement of expropriation procedures shall constitute the basis for assessing compensation. Any later alterations, additions, improvements, building, reclamation, planting, and the like shall not be considered.

• 3. The agency owning the project shall form a committee comprising representatives of the relevant governorship and municipality. Said committee shall be responsible for entering real property within the project plan in the presence of relevant owners and occupants, or either of them, as the case may be, or representatives thereof, and said committee shall draft minutes stating the type and general description of the real property as well as the buildings, walls, trees, plants, wells, dams, and barriers thereon and anything affecting relevant compensation, in addition to the names of the real property owners, occupants thereof, and other stakeholders, based on deeds and documents provided to said committee; along with explanatory drawings and sketches, if necessary. Said minutes shall be signed by committee members as well as relevant owners and occupants or representatives thereof. If any committee member or stakeholder declines to sign, the same shall be recorded in the minutes along with reasons therefor. Signing shall not preclude the correction of any error once established. Objections, if any, shall also be recorded. The committee shall complete its duties within 60 days from the date of the decision approving commencement of expropriation procedures.

• The agency owning the project shall form a committee to assess compensation for real property to be expropriated or adversely affected by the project, as follows:

  • First: Five representatives of government agencies to be designated by their respective agencies as follows:

    • 1. A representative of the agency owning the project.

    • 2. A representative of the Ministry of Justice.

    • 3. A representative of the Ministry of Municipal and Rural Affairs.

    • 4. A representative of the Ministry of Interior.

    • 5. A representative of the Ministry of Finance and National Economy.

  • Second: Two persons with expertise in real property nominated by the Chamber of Commerce and Industry in the relevant province. Said members shall be experienced Saudi nationals known for their integrity. Government representatives shall be of a rank not lower than ‘Grade Six’. The representative of the Ministry of Justice shall, in addition to the previous requirements, have the qualifications required for appointment in the judiciary. No one may be eligible for committee membership if his spouse, in-laws, or relatives up to the fourth degree, have any right or interest in the real property to be expropriated or affected by the project, nor if he is the attorney-in-fact, trustee, or guardian of anyone with a right to the real property.

• The Appraisal Committee provided for in Article 7 shall commence assessment of the compensation within 60 days from the date of the decision approving commencement of expropriation procedures, and shall complete said assessment no later than 90 days from the date of such decision, unless the Committee determines that there are obstacles, which must be recorded in special minutes to be approved by the agency owning the project.

• 1. The Appraisal Committee may seek the assistance of experts and employees from the competent agencies as it deems necessary.

• 2. The Committee shall, for the purpose of performing its duties, enter relevant real property in the presence of their owners and occupants, or either of them, as the case may be, or representatives thereof. Said parties shall enable the Committee to perform all actions necessary to fulfill its duties.

• 3. The Committee shall convene with all members present, and its decisions shall be passed by majority vote. Said decisions shall be submitted to the agency owning the project for approval. The agency and the Ministry of Finance and National Economy may, within 30 days from the date of the assessment decision, request reassessment by another committee subject to the same membership requirements, except that the representatives of government agencies must be of a rank not lower than “Grade 10”. This Committee shall be formed within 30 days from the date of the reassessment request, and its decisions shall be passed by majority vote. It shall complete its duties within 60 days from the date of the reassessment request; otherwise, the decision of the original committee shall prevail.