-  MOMAH: White Land and Vacant Property Fees Law Contributes to Increasing Real Estate Supply

The Ministry of Municipalities and Housing has affirmed that the White Land and Vacant Property Fees Law, which was recently amended, contributes to increasing real estate supply and achieving market balance, in addition to improving the efficiency of underutilized assets and promoting fair competition.

In a press statement issued today, the Ministry explained that the new system consists of fifteen articles outlining key definitions and the annual fees imposed on white lands and vacant properties. The Law grants the Ministry the authority to determine the scope of application and the plot sizes subject to the fees, provided that the land area or total included areas are not less than 5,000 m², in accordance with the regulations.

The Ministry added that the implementing regulations, which are currently being prepared, will outline the conditions, controls, and criteria required to apply the Law. These will include the criteria for inclusion and exemption, methods of fee calculation, notification procedures for owners or equivalent parties, and safeguards against evasion to ensure fair and transparent application.

It also emphasized that the owner is held responsible for paying the fees or penalties unless the equivalent party makes the payment. The Law stipulates that violators may be penalized with fines not exceeding the amount of the due fee, without relieving them of their payment obligation. Furthermore, the Law allows the owner or equivalent party to appeal decisions regarding inclusion or valuation within 60 days from the date of notification, through official channels and according to detailed mechanisms to be outlined in the regulations.

The Ministry stressed that the fee implementation will rely on accurate and unified databases to ensure fairness and transparency. It noted that revenue from the fees and fines will be allocated to support housing projects, thereby fulfilling the Law’s goals of enhancing urban sustainability and reducing real estate monopolization.

The Ministry highlighted that the approval of these amendments is part of ongoing efforts to regulate the real estate sector and achieve balanced and sustainable urban development that serves citizens. The White Land Fees Regulations will be published within 90 days of the Law’s publication in the Official Gazette, while the Vacant Property Fees Regulations will be issued within one year from the same date.

It is worth noting that the decision to approve the amendments to the White Land Fees Law was published in Umm Al-Qura Gazette on Monday, 14 Dhul-Qi'dah 1446 H (corresponding to 12 May 2025), following the Council of Ministers’ approval of the amendments during its session held on Tuesday, 1 Dhul-Qi'dah 1446 H (corresponding to 29 April 2025).