ا

His Excellency Mr. Majed bin Abdullah Al-Hogail, Minister of Municipalities and Housing, extended his profound gratitude to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Crown Prince– may God preserve them – following the Council of Ministers’ approval of the amendments to the Law of White Land Fees during its session held on Tuesday, April 29, 2025 (corresponding to 1 Dhul-Qi’dah 1446 H).

Al-Hogail emphasized that the newly approved amendments are in line with the directives of His Royal Highness the Crown Prince, which were issued as part of a broader set of directives aimed at achieving greater balance in the real estate market. The amended law is expected to enhance the efficiency of land and underutilized building usage, promote balance between supply and demand, and encourage the effective utilization of real estate assets. The amendments will also help stimulate the development of white lands, increase real estate availability—particularly in the housing sector. The Minister further noted that the royal approval of these amendments marks a significant step forward in raising the efficiency of the real estate sector in the Kingdom, promoting real estate development, enhancing its investment attractiveness, and achieving the goals of the Housing Program - one of Vision 2030 Programs.

The Implementing Regulations for the Law of White Land Fees Law are currently being developed and are scheduled to be issued within 90 days from the date of the law’s publication in the Official Gazette. Meanwhile, the regulations pertaining to vacant properties will be issued within one year from the same publication date. These steps are part of a broader framework of real estate legislation that actively supports the realization of the goals set forth in Vision 2030 and its related initiatives and programs. The overarching aim is to enhance the regulatory and legislative environment of the real estate sector and ensure it keeps pace with the Kingdom’s ongoing economic and investment momentum.

The key amendments included fee percentages, land sizes, types of use, implementation phases, and the inclusion of vacant properties, which the law defines as: (ready-to-use buildings intended for occupancy within the urban boundary that remain unused for a long period without acceptable justification, and whose lack of use or utilization affects the availability of adequate supply in the real estate market). The new amendments imposed fees on vacant properties within the approved urban boundary, based on a percentage of the  estimated annual rental value, not exceeding 5% of the property’s value, in accordance with what is specified in the regulations.

The amendments also included raising the upper limit of the annual fee to no more than 10% of the property’s value, and reconsidering the land size subject to the white land fee, provided that the land area or the combined land areas within the applicable zone may not be less than 5,000 m², as determined by the regulations.

The implementation of the fees will be carried out fairly and transparently, based on unified and accurate databases as specified by the regulations, with clear mechanisms provided for objections and appeals. The system will be applied across all regions of the Kingdom, serving as an effective regulatory tool aimed at promoting urban sustainability, reducing monopolistic practices, and ensuring the optimal utilization of land and real estate in a manner that benefits both citizens and the market.