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Legal reference

Reserve and repair fund rules in Saudi Arabia

Short answer

The general assembly may decide to form a reserve amount to meet costs that exceed the association's approved budget, as the by-laws specify, and the owners may also agree to form it.

What the law says

Original wording of the law (Arabic). The summary and the notes around it are ours.

للجمعية العامة أن تقرر تكوين مبلغ احتياطي بغرض مواجهة أي تكاليف تتجاوز قيمتها ميزانية الجمعية المعتمدة، بحسب ما يحدده النظام الأساسي، وللملاك كذلك الاتفاق على تكوين ذلك المبلغ.
Provision: اللائحة التنفيذية، المادة (٣٠) · Official text

Last verified:

What this means in practice

Neither the law nor the executive regulation requires a reserve fund or sets a minimum percentage. Whether to have one is for the owners to decide.

General information, not legal advice. Check with a lawyer in Saudi Arabia before relying on it, and read your building's own documents: they can change how a rule applies.

Where Unitify fits

Unitify keeps a balance per unit and records each contribution against the right unit. The size of the fund and what it may be spent on come from the law above and from the owners' decisions.

How this works in Unitify

Questions and answers

What does the law say about the reserve or repair fund in Saudi Arabia?
The general assembly may decide to form a reserve amount to meet costs that exceed the association's approved budget, as the by-laws specify, and the owners may also agree to form it.
Where does this come from, and when was it checked?
The quotation is from اللائحة التنفيذية، المادة (٣٠), at the official source linked on this page. It was last checked against that source on September 7, 2026.
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