Saudi Arabia launches white land fees in Riyadh to boost urban development

25/12/2025 03:16 AST

Saudi Arabia's Ministry of Municipalities and Housing announced that the White Land and Vacant Properties Fees Program will begin issuing its first invoices for undeveloped land in Riyadh on Jan. 1, 2026.

Under the program, landowners can request an extension for development upon receiving an invoice, subject to approval by the relevant committee. If development is not completed within the approved extension period, fees will apply for the entire duration.

Landowners also have the right to appeal the invoice within 60 days of notification, with the committee required to issue a decision within 60 days of receiving the appeal.

The fees target land parcels exceeding 5,000 sq. meters within designated urban development zones in Riyadh. These zones are classified by development priority, with annual fees ranging from 10 percent of land value for maximum-priority areas to 2.5 percent for low-priority areas.

Land outside the priority zones is exempt. The regulations cover all land uses in urban zones and include provisions for joint ownership, requiring each owner to pay according to their share of undeveloped land.

A technical committee of licensed appraisers from the Saudi Authority for Accredited Valuers will assess land values and set timelines for development or construction, with decisions made by majority vote. The regulations also stipulate penalties for noncompliance, with payment due within one calendar year.

The ministry said the White Land Fees program is intended to incentivize the development of unused land, reduce speculation, and increase the supply of developed properties, helping to stabilize the real estate market. Revenue from the fees will be directed to housing projects.

The Etmam Developers Services Center will provide support to landowners seeking to develop their properties, assisting with licensing, approvals, and coordination with government agencies to ensure compliance with regulatory requirements.

According to the ministry, applying fees on undeveloped land and vacant properties is a strategic regulatory tool to enhance land-use efficiency, promote urban development, and support quality of life in Riyadh.

Arab News