In a significant move aligned with Saudi Vision 2030, Minister of Finance and Chairman of the State Properties General Authority (SPGA), Mohammed Al-Jadaan, announced that the newly approved Law of Expropriation of Real Estate for Public Benefit and Temporary Taking of Property will ensure fair compensation, protect public funds, and promote sustainable development.

The law, endorsed by the Council of Ministers on Tuesday, is designed to streamline property expropriation procedures.

Al-Jadaan noted that this law is a cornerstone in the Kingdom’s ongoing regulatory and legislative reform efforts. "It aims to standardize processes related to real estate expropriation and temporary seizures while enhancing transparency," he stated.

The focus remains firmly on serving public interest and securing equitable recompense for both property owners and project stakeholders.

Dr. Abdulrehman Al-Harkan, SPGA Governor, highlighted that the law robustly safeguards the interests of property owners as well as project entities.

He explained that properties subject to expropriation would be valued by certified appraisers sanctioned by the Saudi Authority for Accredited Valuers (TAQEEM).

Valuations are based on current market prices, with an additional 20 percent provided as compensation for expropriation.

Similarly, temporary seizure compensations include a fair rental value plus an added 20 percent.

The updated legislation also introduces tax incentives aimed at easing transitions for affected property owners.

"For those whose properties are expropriated, there will be an exemption from the real estate transaction tax applicable for five years-if they purchase replacement properties equivalent to or less than their compensation," Dr. Al-Harkan stated.

This exemption begins from when compensation is received. Additionally, exemptions from white land fees apply if alternative land is granted as compensation.

The law centralizes oversight mechanisms to ensure effective governance over expropriation and temporary seizure processes.

Submissions for such actions will undergo review by a specialized committee within SPGA comprising various government representatives," Dr. Al-Harkan concluded.