Saudi housing ministry imposes retroactive fees on non-registered land of over 12 mln sqm in Riyadh

The idle lands program, issued by the Saudi Ministry of Housing, registered a land plot of over 12 million square meters (sqm) in Riyadh, under the first phase of undeveloped lands spanning on a minimum area of 10,000 sqm. 
 

A non-registration fine and a retroactive levy will be imposed on the land plots registered by the program instead of the landowners, Saudi Press Agency reported, citing a program statement. 
 

The move is aimed to control monopolistic land practices and contribute to creating a balanced real estate market, the statement added. 
 

Several dutiable land plots have been recently developed in the target cities. Moreover, through the imposed land fees, idle land owners seek to develop their land or enter into partnerships with the Ministry of Housing to establish housing projects for citizens.  
 

Meanwhile, part of the proceeds was utilized in developing the infrastructure of several housing projects across the Kingdom as stipulated in the executive regulations of the idle lands program. 
 

No fees will be charged once the land development is complete, whether with the final approval of its plan or its development within one year from the fee imposition date, according to the statement.  
 

According to data compiled by Argaam, the white land fees began to be enforced on June 8, 2016, in Riyadh, Jeddah, Dammam, and Makkah.