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ARTICLE · 07 OCTOBER 2025

Saudi Arabia's New Expropriation Law: Key Features And Implications

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Saudi Arabia has introduced a new framework for expropriation. The new Law on Expropriation for Public Interest and Temporary Possession of Real Estate...

Saudi ArabiaGovernment, Public Sector

Saudi Arabia has introduced a new framework for expropriation. The new Law on Expropriation for Public Interest and Temporary Possession of Real Estate, issued by Royal Decree No. (M/56) dated 12/3/1447H (Sept. 4, 2025), and approved by Council of Ministers Resolution No. (177) dated 3/3/1447H (Aug. 26, 2025), creates a detailed legal structure for compulsory acquisition and temporary possession of real estate for public interest purposes. This law replaces the 2003 framework and is generally regarded as a significant change in the regulation of expropriation.

The Royal Decree (M/56) includes transitional measures, such as a 120-day period before the law becomes effective. This interval is intended to allow for the finalization of implementing regulations and preparation of administrative systems. This law also addresses continuity by confirming that existing cases approved under the previous framework will remain in place in order to avoid disruption to ongoing

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