{"id":99927,"date":"2026-01-29T15:38:22","date_gmt":"2026-01-29T12:38:22","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=99927"},"modified":"2026-01-29T15:38:23","modified_gmt":"2026-01-29T12:38:23","slug":"%d9%82%d8%b1%d8%a7%d8%a1%d8%a9-%d9%82%d8%a7%d9%86%d9%88%d9%86%d9%8a%d8%a9-%d9%81%d9%8a-%d9%86%d8%b8%d8%a7%d9%85-%d9%86%d8%b2%d8%b9-%d9%85%d9%84%d9%83%d9%8a%d8%a9-%d8%a7%d9%84%d8%b9%d9%82%d8%a7%d8%b1","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/99927\/","title":{"rendered":"A Legal Reading of the Real Estate Expropriation and Temporary Seizure Law"},"content":{"rendered":"

It is no longer a matter of Real estate expropriation<\/strong><\/a> In public projects, this is no longer merely a procedural issue; rather, it has become a true test of the legal system\u2019s ability to strike a balance between the demands of development and the sanctity of private property. Hence, the new system for the expropriation of real estate for the public interest and the temporary seizure of real estate was introduced to redefine this relationship on more disciplined and equitable grounds.<\/p>\n\n\n\n

The new system is based on a fundamental principle: that private property is a protected right that may be infringed upon only in exceptional cases and under strict conditions, foremost among which are the public interest and the provision of fair compensation. This principle is not merely a declaratory statement; rather, it has been transformed into a binding rule that governs the legality of administrative decisions from the outset and makes any violation of it subject to challenge and accountability.<\/p>\n\n\n\n

Restrictions on Expropriation<\/strong><\/p>\n\n\n\n

Among the most notable achievements For the system <\/a><\/strong>It restricts the authority of the administrative body before initiating expropriation or temporary seizure procedures; thus, an administrative decision is no longer sufficient on its own, but the law now requires prior verification that no state-owned real estate is available to serve the purpose. This restriction reflects a qualitative shift in the regulatory philosophy, as it makes the expropriation of private property a last resort to be used only after all public alternatives have been exhausted, and shifts the burden of proof from the owner to the project developer.<\/p>\n\n\n\n

Furthermore, the system did not leave the concept of \u201cpublic interest\u201d vague or subject to broad administrative interpretation; rather, it has defined it with objective criteria and linked it to the achievement of a compelling public benefit, whether in the areas of infrastructure, urban planning, basic services, or the protection of public safety and health. This definition curbs unjustified expansion and provides the judiciary with a clear standard for reviewing the legality of decisions.<\/p>\n\n\n\n

A real leap forward <\/strong>For compensation<\/strong><\/p>\n\n\n\n

As for compensation, the new system represented a real step forward compared to the previous regulations. Compensation is no longer limited to the mere market value; rather, the system added a mandatory 20 percent increase on top of the value of the expropriated property, in addition to compensation for damages resulting from the expropriation proceedings themselves. Thus, compensation has shifted from merely \u201cvaluing\u201d the asset to addressing the full impact on the owner resulting from the forcible loss of ownership. With regard to temporary seizure, the system treats it as a separate, exceptional measure that must not be allowed to become a disguised expropriation. It therefore mandates that compensation must be no less than the market rent, plus a twenty percent surcharge, along with compensation for damages. It also sets a strict time limit for this measure\u2014not to exceed three years\u2014which may be extended only with the consent of the owner and the competent committee; otherwise, the property must be vacated. These provisions prevent any prolonged or arbitrary use of this measure under the pretext of its temporary nature.<\/p>\n\n\n\n

Establishment of a Multi-Stakeholder Committee<\/strong><\/strong><\/p>\n\n\n\n

One of the most notable aspects of the governance framework adopted by the regime is the establishment of a multi-stakeholder committee for expropriation and temporary seizure, comprising sovereign and regulatory bodies, which is tasked with verifying the existence of public interest, financial solvency, the absence of alternatives, and the appropriateness of the type of compensation. This institutional framework limits individual decision-making, reinforces the principle of reasoned collective decision-making, and enhances transparency and administrative discipline. The system also pays special attention to valuation procedures, requiring that they be conducted by certified appraisers, reviewed by an independent committee, and that any valuation not in accordance with professional standards be excluded, with the average value being adopted. This reduces the likelihood of low or unfair appraisals and provides the owner with a greater degree of assurance.<\/p>\n\n\n\n

With regard to eviction, the system established a crucial rule: a property may not be vacated before compensation is paid in full, except in specific exceptional cases, while granting the owner the right to a reassessment if payment is significantly delayed, and adopting the higher value in the event of a discrepancy. In this way, the regulation shifted the burden of time from the owner to the administrative authority\u2014a long-awaited correction in practical application.<\/p>\n\n\n\n

Protection of Third Parties Other Than the Owner<\/strong><\/strong><\/p>\n\n\n\n

The system did not overlook the protection of third parties other than the owners who might be harmed by expropriation or seizure proceedings; it explicitly recognized their right to claim compensation, It also preserves the owner\u2019s right to dispose of their property despite the proceedings being in effect, prevents conflicts of interest, and allows for judicial review of decisions issued under the law.<\/p>\n\n\n\n

In short, this system is not merely a procedural update; rather, it reflects a legislative shift in the regulator\u2019s view of private property\u2014recognizing it as an inherent right that cannot be sacrificed in the name of development, but rather one whose relationship is managed through safeguards, compensation, and governance that strike a balance between individual rights and the requirements of the public interest. If this system is applied in the spirit of its provisions\u2014and not merely to the letter\u2014we will have a legal framework capable of supporting development projects without compromising justice or confidence in administrative decisions.<\/p>\n\n\n\n

@<\/a>Dr_alkharji<\/strong><\/p>\n\n\n\n

<\/p>","protected":false},"excerpt":{"rendered":"

Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>The issue of expropriation of real estate for public projects is no longer an incidental procedural matter, but has become a real test of the legal system's ability to balance the requirements of development and the sanctity of private property. Hence, the new Law on Expropriation of Real Estate for Public Interest and Temporary Seizure of Real Estate, in its new formulation, came to reformulate this relationship on a more disciplined and just basis. The system ... 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