Individual Corruption

According to Freedom House 2010, one of the areas in which property rights are often insecure is land deeds, especially in peripheral regions that are marked for development and in older urban areas where titles can overlap and are not well-documented. According to the report, much abuse is reported in this field; appropriation of state and private lands is one of the main channels of rent-seeking and patronage in Saudi Arabia. The land registration system, though currently in the process of reform, remains opaque and underdeveloped, and public access to it is limited.

Business Corruption

According to Bertelsmann Foundation 2010, even though property rights are largely guaranteed in Saudi Arabia, when put within the larger context of corruption (cases involving members of the royal family), property deeds can be obtained outside the application of the law. Similarly, foreigners de facto own hundreds of thousands of SMEs, while the official Saudi owner collects a monthly fee from them. 

According to the US Department of State 2011, there have been no property expropriation actions in the recent past or policy shifts that would indicate such actions in the near future.

Political Corruption

According to Freedom House 2010, property rights can be compromised when members of the royal family force their way in on business deals or companies of commoners by intimidating them and making them cede ownership stakes or forcing foreign companies to operate through them instead of their commoner partners. Also Bertelsmann Foundation 2010 notes that it is assumed by the public that the royal family manipulates property rights, among other things.

According to a November 2008 article by Arab News, illegal land grabs are a frequent problem around Jeddah. Reportedly, well-connected individuals, such as public notaries, issue illegal property deeds to smaller investors who are often not aware of proper procedure to purchase real estate. Several notaries have been prosecuted in 2008 for their involvement in illegal sale of government land. Moreover, a municipality inspector has revealed that bribes are often accepted by municipality employees for turning a blind eye to the irregularities. However, in many cases the municipality will demolish constructions build on the illegally acquired land, and violent clashes have occurred between municipality workers and citizens inhabiting the illegal buildings.

Frequency

The World Bank & IFC: Doing Business 2011:
- Registering property in Saudi Arabia requires a company to go through 2 administrative steps, taking an average of 2 days at no cost of the property value, making Saudi Arabia the best performing country based on the ease with which companies can secure rights to property.

World Economic Forum: The Global Competitiveness Report 2010-2011:
- Business executives give the protection of property rights in Saudi Arabia, including financial assets, a score of 5.4 on a 7-point scale (1 'very weak' and 7 'very strong').