Saudi Arabia has introduced a new policy to impose white land fees in Riyadh, aiming to accelerate urban development and improve the efficiency of land use across the capital. The initiative aligns with the Kingdom’s broader Vision 2030 strategy to modernize cities, stabilize the real estate sector, and increase housing availability.
The decision was announced by the Ministry of Municipalities and Housing and is expected to play a key role in reshaping Riyadh’s urban landscape.
What Are White Land Fees?
White land fees are annual charges applied to undeveloped plots located within designated urban areas. These lands often remain unused for long periods, limiting housing supply and slowing city expansion.
Under the new policy, landowners will be required to either develop their properties or pay a fee, encouraging productive use of valuable urban land.
Key Highlights of the Policy
1. Fee Structure
- Annual fees range from 10 percent of land value in prime zones
- Reduced to 2.5 percent in lower-priority areas
2. Targeted Areas
- Applies to undeveloped land parcels exceeding 5,000 square meters
- Focused on designated development zones in Riyadh
3. Payment and Compliance
- Landowners must respond to invoices within 60 days
- Payments are due within one year of invoice issuance
- Penalties may apply for non-compliance
Why Saudi Arabia Introduced This Policy
Encouraging Urban Growth
The policy is designed to reduce land hoarding and motivate owners to contribute to city development.
Stabilizing the Real Estate Market
By increasing land availability, the initiative helps balance supply and demand, potentially easing property prices.
Supporting Housing Projects
Revenue generated from the fees will be directed toward housing and urban development projects, benefiting residents and investors alike.
Exemptions and Special Cases
- Land located outside priority zones may be exempt
- Jointly owned land will be assessed based on ownership share
- Licensed developers may qualify for specific exemptions
- Appeals can be submitted through official regulatory channels
Impact on Vision 2030
This move directly supports Saudi Arabia’s Vision 2030 goals by:
- Enhancing land-use efficiency
- Promoting sustainable urban planning
- Improving housing supply
- Encouraging private-sector participation in development
Riyadh’s transformation into a modern, livable global city remains a central focus of national policy.
White land fees are government charges imposed on undeveloped urban land to encourage development and reduce land hoarding.
The fees will begin after official notifications are issued to landowners, starting from January 2026.
Landowners with undeveloped plots exceeding specific size limits within designated urban zones are required to pay the fees.
The goal is to increase housing supply, stabilize real estate prices, and promote efficient land use in Riyadh.
Fees range between 2.5% and 10% of the land value, depending on location and development priority.
