During his appearance on the Socrates podcast, Finance Minister Mohammed Al-Jadaan revealed the regulations for real estate expropriation and the method for calculating compensation for expropriated property owners.
Al-Jadaan said during his interview on the Socrates podcast: "Expropriation is an exception to our system’s—and that of other countries"—fundamental respect for property rights. The constitution respects private property, and expropriation occurs only in the public interest, which takes precedence over private interests; however, there must be fair compensation."
He added: “In the amendment to the expropriation law, it was decided that appraisals must be conducted by certified appraisers,” noting that this appraisal is very important for fairness toward those whose property is expropriated and for public funds, It was also decided that a 20% premium over market value would be added to the expropriation compensation as a gesture of goodwill toward the expropriated party. He highlighted a new amendment to the Expropriation that sets clear timeframes for expropriation, payment, and compensation.
Regarding complaints from citizens whose properties were expropriated in the Al-Khuzama and Al-Dir’iya neighborhoods and the informal settlements of Jeddah, the Minister of Finance explained that over the past 4 months, 70% of payments in Jeddah have been completed, and the budgets have been allocated. The obstacle was previously on the government’s side, but the main issue now is the ability of those whose property has been expropriated to finalize their paperwork and settle their utility bills for electricity, water, and other services.
