RIYADH — Minister of Finance and Chairman of the State Properties General Authority (SPGA) Mohammed Al-Jadaan said that the Law of Expropriation of Real Estate for Public Benefit and Temporary Taking of Property, approved by the Council of Ministers on Tuesday, will contribute to ensuring fair compensation, safeguarding public funds, and supporting sustainable development. He said the updated Expropriation Law aims to enhance the governance of property expropriation procedures or temporary seizure of properties. Al-Jadaan said that the law is part of the regulatory and legislative reforms underway in the Kingdom under Saudi Vision 2030. "The law aims to unify and streamline procedures for expropriation and temporary seizure of real estate, enhance transparency, serve the public interest, and ensure fair compensation for property owners and project stakeholders," he said. Commenting on the law, SPGA Governor Dr. Abdulrehman Al-Harkan emphasized that the updated law protects the rights of property owners and project entities in all its provisions. "The law requires valuation of expropriated properties by certified appraisers accredited by the Saudi Authority for Accredited Valuers (TAQEEM), based on fair market value, with an additional 20 percent added as compensation for expropriation. For temporary seizure, compensation will consist of a fair rental value plus an additional 20 percent," he said. Al-Harkan said the law also provides tax incentives. "Owners whose properties are expropriated will be exempt from the real estate transaction tax for five years, equivalent to, or less than, the tax value of the compensation amount, when purchasing replacement properties. This exemption begins from the date the compensation is received," he said, adding that owners will be exempt from white land fees if compensation is granted in the form of alternative land. He said the law centralizes oversight and governance of expropriation and temporary seizure processes. "Requests for expropriation or temporary seizure will be submitted to a committee within SPGA, with participation from relevant government representatives," he added
