Issuance of white land fee invoices begins today in Riyadh

Saudi Arabia’s White Land and Vacant Properties Fees Program began issuing its first invoices for undeveloped land in Riyadh today, Jan. 1.

Landowners may apply for an additional development grace period, subject to approvals, once the fee on their land is decided. If the development is not complete within the approved extension, the fees will become payable for the entire duration.

Minister of Municipalities and Housing Majed Al-Hogail earlier announced the geographic zones subject to white land fees in Riyadh, along with the applicable annual fee rates on undeveloped land or groups of undeveloped land within those zones.

The first tier, classified as the highest priority, is subject to an annual fee of 10% of the land’s value. The second tier (high priority) carries an annual fee of 7.5% of the land’s value. The third tier (medium priority) is subject to an annual fee of 5% of the land’s value.

The fourth tier (low priority) carries an annual fee of 2.5% of the land’s value. The fifth tier, which falls outside the priority zones, is not subject to an annual fee and is included in the total white land holdings of the taxpayer within the city limits.

The Ministry of Municipalities and Housing said the implementation of White Land and Vacant Properties Fees aims to encourage the development of idle land, curb land hoarding, and increase real estate supply, contributing to market stability and the achievement of urban development and quality-of-life goals.

The ministry added that fee revenues will be redirected to housing projects, while the Itmam Center will provide support to landowners seeking to develop their properties.