
The General Authority for State Real Estate has adopted a new system for the expropriation of real estate and temporary possession, establishing strict controls to ensure a balance between national development requirements and the protection of property owners’ rights.
The system includes several chapters and articles, clarifying the concept of public interest, compensation mechanisms, and detailed procedures related to expropriation, inventory, and valuation.
Public Interest as a Condition for Expropriation
Article Two stipulates that no real estate may be expropriated or temporarily possessed except to achieve public interest and in exchange for fair compensation, provided that this is done in accordance with the provisions of the system and its implementing regulations.
Regarding the commencement of procedures for the expropriation of real estate conflicting with the pathways of the program to develop the axes of ring and main roads in the city
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Article Three confirmed that the provisions of the system do not apply to real estate owned by the state or its entities, while Article Four stipulated that expropriation procedures shall only be taken when no alternative government real estate is available that serves the purpose.
Article Five defined public interest as anything that achieves a public benefit that outweighs any private interest, and this includes averting public harm such as disasters and epidemics. It specified the works falling under this concept, foremost among them development projects for the facilities of the Two Holy Mosques, road and public transportation projects, urban planning, the establishment of mosques, schools, and hospitals, energy, water, electricity, and communications projects, exploration and mining, environmental protection and natural reserves, the preservation of cultural heritage, security and military projects, in addition to works stipulated by the Council of Ministers or other systems.
Expropriation of real estate conflicting with the project to complete the implementation of the Third Ring Road “Intersection of Prince Sultan Road and Intersection of the Holy Mosque Road”
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Compensation: Market Value Plus 20%
Article Six set out clear provisions for compensation, where the person whose property is expropriated is entitled to compensation calculated based on the market value of the property, with an additional 20% added, along with compensation for any damages arising from the expropriation procedures.
In the case of temporary possession, the owner is entitled to compensation not less than the fair rental value, with an addition of 20%, plus compensation for damages resulting from the period of use.