The Ministry of Municipalities and Housing of Saudi Arabia stated that the White Land and Vacant Properties Fees Program will start issuing initial invoices for the undeveloped land in Riyadh on January 1, 2026.
Landowners are granted the opportunity to seek an extension of development under the program after an invoice is issued, and with the approval of the relevant committee. Failure to complete the development within the sanctioned time frame will result in the payment of fees during the entire period.
The invoice can also be appealed by landowners within 60 days of being notified, and the committee must issue a decision within 60 days of receiving such an appeal.
The charges will apply to parcels of land bigger than 5,000 sq. meters in the special urban development areas of Riyadh. The zones will be ranked by the priority of development, and the annual fees vary between 10 percent of the land value of the maximum-priority areas and 2.5 percent of the land value of the low-priority areas.
Outside the priority areas is land of exemption, the rules apply to all land uses in urban areas, and there are joint ownership provisions, and each owner must pay based on their portion of the undeveloped land.
Land values and development or construction time frames will be evaluated by a technical committee of licensed appraisers of the Saudi Authority for Accredited Valuers, with the majority vote determining the decisions.
Therefore, the rules are also prescriptive of the consequences following failure to do so, and payment is supposed to be made within a given calendar year.
According to the ministry, the White Land Fees program will aim at supporting the development of idle land, lessening speculation, as well as increase supply of developed properties, which will stabilize the real estate market.
However, the fees will be used to raise revenue that will be used in housing projects. Etmam Developers Services Center will offer services to landowners who are interested in developing their land parcels to help them with their licensing, approvals, and liaising with government bodies to ensure that they comply with the regulations.
The ministry reported that imposing levies on undeveloped land and empty houses is a wise policy instrument to improve the efficiency of land utilization, urban growth, and quality of life in Riyadh.
