Saudi Press

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Friday, Aug 22, 2025

Disbursement of compensation worth SR1bn to owners of razed Jeddah slum properties starts

The Committee for the Random Neighborhoods in Jeddah announced the start of disbursing the first installment of compensation amounting to SR1 billion for the Saudi owners of properties razed in the random neighborhoods and slums in the Jeddah governorate.
The distribution ceremony was held in the presence of Governor of the State Properties General Authority Ihsan Bafaqih and Mayor of Jeddah Governorate Saleh Al-Turki.

The committee said in a statement that the compensation for the rest of the citizens would be disbursed in several successive stages. This will be in accordance with a timetable, after the completion of the work of listing and evaluating the razed properties, and the completion of the procedures and collection of the required documents.

The committee explained that disbursement of compensation is an extension of the services and initiatives provided by the government to owners of removed properties. It is also part of the efforts and initiatives made by the government sectors to reorganize slums and enhance the quality of life.

“The real estate appraisal work was carried out through independent committees comprising six members from four government agencies that include the Ministry of Interior, Ministry of Municipal and Rural Affairs and Housing, Ministry of Finance, and the State Properties General Authority, in addition to two accredited valuers chosen by the Saudi Authority for Accredited Valuers.

The committee indicated that the evaluation was based on technical criteria for each neighborhood separately, where the value of the land was evaluated separately from the value of the rubble, and whoever does not own a title deed for the land is compensated for the rubble only.

It noted that the real estate appraisal was based on the area, location and utility of the land in the form of residential, commercial and open space. As for the estimation of the construction price, it depended on the type of construction and its area such as reinforced concrete building, traditional building and warehouses.

“The evaluation panels relied on the executive regulations of the Law of Expropriation of Real Estate for the Public Benefit, temporary seizure of the property, and the technical standards manual issued by the Saudi Authority for Accredited Valuers, which is based on the best practices that enhance the governance of appreciation and real estate appraisal.

The committee called on all citizens to quickly complete the procedures so as to facilitate disbursement of compensation with the submission of the required papers and documents, including a copy of the deed or document, the owner’s data and a clear copy of the national identity in PDF format.

The citizen needs to submit the IBAN number of the bank account on the bank’s publications in PDF format, the statements of each of the Saudi Electricity Company, the National Water Company, the Social Development Bank, the Agricultural Development Fund, the Real Estate Development Fund, a copy of the legal agency of the agent and a copy of his national identity.

This is in addition to a copy of the electricity-water bill, a photo of the building if any, an aerial photo of the site or any other photos, if any and the number of documenting the evacuation of the building. This may be sent via the service of receiving requests for compensation for the removal of slums through the Jeddah Mayoralty’s digital portal www.jeddah.gov.sa.
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