The Regulation of Expropriation of Real Estate for Public Interest and Temporary Seizure came into effect today, Saturday 28 Rajab 1447 AH, corresponding to January 17, 2026 AD, 120 days after its publication in the Official Gazette, marking a new stage in the regulation of this vital sector.

The Public Authority for State Properties explained that the system comes to restructure and unify the procedures of expropriation and temporary handover, through simplified and clear mechanisms that promote the principles of transparency and governance, and guarantee the rights of all parties, whether property owners or implementing agencies for public projects, under the unified reference supervision of the Authority.

Valuation and Compensation Fairness

<The system includes a set of guarantees that ensure fairness in assessment and compensation, as the value of the expropriated properties is assessed by appraisers accredited by the Saudi Board of Certified Appraisers, according to the fair market value, with the addition of 20% as compensation for expropriation. The law also approved compensation for temporary seizure equivalent to the same rent, plus 20%.

Exemptions associated with the system

<The application also included the activation of a package of exemptions related to the system, most notably exempting owners whose properties have been expropriated from real estate transaction tax for up to five years, with a value equal to the tax due on the amount of compensation or less, when purchasing alternative properties, provided that the exemption period begins from the date of receiving the compensation. The law also stipulates that properties are exempt from white land fees if compensation is provided through the granting of alternative land.

The law also stipulates that properties are exempt from white land fees. The law stipulates that before embarking on any expropriation procedures, it must first search for state-owned properties that can meet the requirements of the public benefit project, and if they are not available, the necessary financial allocations must be ensured before starting implementation, in order to enhance the efficiency of public spending and support the paths of sustainable development in various regions of the Kingdom.

The law also stipulates that real estate is exempt from white land fees if compensation is provided through the granting of alternative land.