The system of expropriation of real estate for public interest and temporary seizure began today, Saturday 28 Rajab 1447 AH, corresponding to January 17, 2026 AD, after 120 days of its publication in the Official Gazette, marking a new stage in regulating this vital sector.
Regulation of expropriation of real estate for public interest and temporary seizure of real estate
The General Authority for State Properties explained that the system comes to restructure and unify the procedures of expropriation and temporary seizure, 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 valuation and compensation, as the value of the expropriated properties is assessed by appraisers accredited by the Saudi Commission for 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 receipt of 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 sustainable development paths in various regions of the Kingdom.
