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30 June 2022

01 Thul-Hijjah 1443

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Law No. 10 of 1987 with regard to Public and Private State Property

Law Summary Record Type: LawNumber: 10Date: 05/05/1987 Corresponding to 07/09/1407 HijriNumber of Articles: 27Status: In force

Official Gazette :Issue: 5Offcial Journal Issue Publication Date: 01/01/1987 Corresponding to 01/05/1407 HijriPage from: 758

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Part 2: Private State Property own (14-14)

8 Article

Private State property is the immovable and movable property owned by the State or a public legal entity that is not allocated for a public benefit or the allocation of which for public benefit has expired.

9 Article

The following shall be deemed Private State Property:

1- Lands that have no owner and which fall within the boundaries of cities and towns or outside the same.

2- Barren lands (uncultivated), desert lands and grasslands which fall outside the boundaries of cities and towns.

3 - Agricultural and barren lands which the State had granted on condition of its being cultivated or invested for a particular purpose and the owners thereof have ceased the implementation of this requirement for five consecutive years, provided that these owners are compensated for any facilities they may have erected thereon if the conditions for compensation are found.

4- All real estate, real estate by destination and movable property owned by the State or public legal entities that is not allocated for public benefit.

5 - Deceased estates for which there are no heirs and the property of missing persons who do not have any heir or agent if their absence has continued for more than fifteen years.

6 - Abandoned pieces of public property like the remnants of public roads and public spaces.

7 - Treasures and items of value or items that are stored in anything of the past, that no one can establish ownership of.

10 Article - Amended

The State Property division at the Department of Real Estate Registration and Notarisation shall be attached to the Department of State Property. The private real estate of the State shall be recorded in a special register at this department in sequential numbers, including specification of the description of each of them, its area, borders and inclusions, with the provision that any transactions that might occur on the real estate relating to ownership, any other tangible real estate right, its transfer, change or removal; as well as final judgments established for any of the above; must be added to these details in order. Each property shall have a dedicated file containing the documents and papers related to it.

The relevant employees at the Department of State Property must use the information from those overseeing the Department of Private Real Estate of the State and any other information available to them; conduct research and investigations to ascertain all the real estate owned by the State privately; record the entry in the special register together with identifying those non-registered in the Real Estate Registry; and adopt the procedures for their registration and issuance of ownership bonds on behalf of the State in accordance with the provisions of the Real Estate Registration Act and its executive bylaw.

In addition to the register referred to in the preceding two paragraphs, the Department of State Property shall be responsible to maintain a special register for each of public housing, housing of senior staff and Emiri land grants, in which the names of the beneficiaries shall be recorded. The Department shall also maintain a register containing the alphabetical index of their names, to identify them and ensure that one beneficiary does not obtain more than one grant.

11 Article - Amended

The Department of State Property shall be responsible for administering the private real estate of the State with the exception of real estate the administration of which is assigned to a specific body in this Law, and real estate allocated for the purposes of a Ministry, government department or a public authority or corporation, which bodies shall administer the real estate allocated to them, provided that the body to which it was allocated is indicated before each of these properties in the special register at the Department of State Property. The allocation shall take place with the approval of the Emir.

The executive bylaw of this Law shall specify the terms of reference of the Department of State Property and its organization and shall detail its divisions and system of operation.

12 Article

Any stakeholder may raise an objection against the registration of ownership of real estate or a tangible real estate right as private state property.

The provisions stipulated in Article 4 of this Law shall apply with respect to the submission of the objection, its review, adjudication and challenge.

The administrator of the lands or his representative, or the director of the department or institution that administers or supervises state owned real estate, shall represent the state, before committees and courts, in the disputes that take place .

13 Article

No natural or legal person may, in any capacity whatsoever, own, hold, or control privately owned property of the state or a public legal entity, except by a disposal that takes place in the relevant body in accordance with the provisions of the following articles.

As an exception to these provisions, license may be granted for the use of the property referred to under a decree that includes the name of the licensee, the type of use and the conditions and obligations of the beneficiary.

Ownership of private State property or any other tangible right over it may not be acquired by prescription.

Any disposal or assignment of any tangible right or lease or control that takes place in violation of the above provisions shall be void.

No infringement is allowed on the mentioned property. In the event of there being any infringement on the same the body that is tasked with the administration or supervision thereof may remove the infringement administratively.

14 Article - Amended

The Ministry of Municipal Affairs and Agriculture shall be responsible for the administration and supervision of agricultural and arable state lands and grasslands.

The executive bylaw of the Law shall specify the terms of reclamation, cultivation, utilization, transfer of title and lease of such lands.

The contracts entered into by the Ministry for the transfer of title of such lands, whatever their value, shall be subject to the approval of the Emir.

Other contracts shall be subject to the approval of the Emir if the annual value is in excess of 500,000 (five hundred thousand) riyals annually, and the approval of the Minister of Finance and Economy if it does not exceed this value.

14 Article BIS

15 Article - Amended

The occupants of the lands referred to in Clause 2 of Article 9 of this Law - with the exception of grasslands - may request to purchase these lands or lease them. Where such request is not submitted within one year of the effective date of this Law, or their request is rejected, they must be evicted from those lands. The Department of State Property may remove the existing buildings or plantations or retain the same as owned by the State.

Any person for whom actual possession of tracts of these lands is established for five consecutive years prior to the issuance of this Law, shall have priority over others to purchase or lease them if it is decided that they will be sold or leased.

The executive bylaw shall detail the procedures to be followed to achieve control over these lands.

16 Article - Amended

The director of the Department of State Property or the Minister under whom the body for which these lands were allocated falls, may dispose of non-agricultural lands, whether vacant, built up or occupied by fixed or non-fixed installations, by sale or lease, to their occupants or others, in accordance with the terms and conditions prescribed by the executive bylaw, according to the rules prescribed in the applicable laws.

The contracts of sale and lease shall be subject to ratification thereof in accordance with the provisions of the second paragraph of Article of 14 of this Law.

17 Article - Amended

The State and public legal entities shall have the right to collect the rental or price due thereto for the real estate or movable property privately owned by it through administrative means.

The relevant Minister, in accordance with the preceding article, or the director of the Department of State Property, as the case may be, may cancel the lease contracts referred to if the lessee or the possessor breaches any material obligation required by the law or the contract, or if required by the allocation of the property for the purpose of public benefit.

In these instances the lessee whose contract was cancelled shall be entitled to compensation for the plantation or installations in accordance with the requirements of general rules.

The resolution for cancellation of the lease contract shall be implemented by administrative means.

18 Article

The ownership of real estate disposed of by the State or a public legal entity shall devolve, in accordance with the provisions of this Law, to the person to whom it was disposed together with the rights of benefit or use, without incurring any right to claim compensation in return for these rights.

The person to whom ownership of any of these real estate properties devolves may only dispose of it in whole or part after discharging the price and related charges in full to the relevant body.

19 Article

All transactions validly concluded prior to the effect of the provisions of this law on real estate privately owned by the State or a public legal entity shall remain in effect with the same terms and conditions applicable at the time of conclusion.

20 Article

The deadline stipulated in Article 19 of Law No. 14 of 1964 with respect to the Real Estate Registration System shall be extended for two years from the effective date of this Law.

The real estate for which no-one has submitted a registration application within this period shall be deemed vacant and not owned by any person. The ownership of the same shall devolve to the State and it shall be registered in the private state property register.

The owners of such properties may request the transfer of ownership of the same to them, if they establish their right therein and present justified excuses for not applying for registration within the period referred to.

The application shall be submitted to the Real Estate Registration Committee established by Cabinet Resolution No. 1 of 1976 referred to. Its resolution for dismissal thereof may be challenged before the Civil Court within fifteen days from the date of the announcement to the person concerned.

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