Saudi Gazette report
RIYADH — Minister of Finance and Chairman of the State Properties Common Authority (SPGA) Mohammed Al-Jadaan mentioned that the Regulation of Expropriation of Actual Property for Public Profit and Non permanent Taking of Property, accepted by the Council of Ministers on Tuesday, will contribute to making sure honest compensation, safeguarding public funds, and supporting sustainable improvement. He mentioned the up to date Expropriation Regulation goals to boost the governance of property expropriation procedures or short-term seizure of properties.
Al-Jadaan mentioned that the regulation is a part of the regulatory and legislative reforms underway within the Kingdom underneath Saudi Imaginative and prescient 2030. “The regulation goals to unify and streamline procedures for expropriation and short-term seizure of actual property, improve transparency, serve the general public curiosity, and guarantee honest compensation for property homeowners and undertaking stakeholders,” he mentioned.
Commenting on the regulation, SPGA Governor Dr. Abdulrehman Al-Harkan emphasised that the up to date regulation protects the rights of property homeowners and undertaking entities in all its provisions. “The regulation requires valuation of expropriated properties by licensed appraisers accredited by the Saudi Authority for Accredited Valuers (TAQEEM), primarily based on honest market worth, with a further 20 % added as compensation for expropriation. For short-term seizure, compensation will include a good rental worth plus a further 20 %,” he mentioned.
Al-Harkan mentioned the regulation additionally supplies tax incentives. “House owners whose properties are expropriated will likely be exempt from the actual property transaction tax for 5 years, equal to, or lower than, the tax worth of the compensation quantity, when buying substitute properties. This exemption begins from the date the compensation is acquired,” he mentioned, including that homeowners will likely be exempt from white land charges if compensation is granted within the type of various land.
He mentioned the regulation centralizes oversight and governance of expropriation and short-term seizure processes. “Requests for expropriation or short-term seizure will likely be submitted to a committee inside SPGA, with participation from related authorities representatives,” he added
