Saudi rolls out White Land fees, heavy penalties / Image: Files
The landscape of Saudi Arabia’s real estate market is undergoing a seismic shift. The Ministry of Municipalities and Housing (MOMAH) recently launched a new draft regulation outlining strict violations and heavy fines for the “White Land and Vacant Property Tax” system. Currently out for public consultation on the Istitlaa platform, this move is a clear signal to landowners: develop your land, or pay the price.
Saudi Arabia’s new land rules
The Ministry of Municipalities and Housing has formally released a draft regulation detailing fines and penalties under the White Land and Vacant Properties Fees system, aiming to compel landowners to develop idle land or face escalating consequences. The draft is open for public consultation until January 11, 2026, the ministry announced in a statement to its official platform. “The project of the violations and penalties list aims to raise compliance with the White Land and Vacant Properties Fees Law, improve the efficiency of fees, increase the supply of developed land and real estate units, achieve balance between supply and demand, protect fair competition and combat monopolistic practices,” the ministry said in its notice. The message from the authorities is straightforward: undeveloped land within city boundaries should no longer be treated as a passive investment, it must be used productively.
How White land fees system work?
This policy is not a random tax. It’s a strategic response to urban shortages and speculation.Saudi authorities explain that the system is intended to:
- Encourage landowners to develop land rather than hold it idle,
- Boost housing availability and urban infrastructure,
- Balance supply and demand in hot housing markets,
- And support competition by reducing hoarding.
Under newly approved rules, fees are calculated based on the value of undeveloped land, typically applying to plots 5,000 square meters or more within designated urban development zones.Officials also emphasized the practical fairness of the system: landowners are allowed to request development extensions or appeal invoices, with committees required to respond within set timeframes.
Penalties
The draft penalties list, now open for feedback, establishes clear consequences for different types of violations.Officials said the draft includes:
- Fines for late or missing paperwork submissions,
- Penalties for failing to register land before invoicing,
- Charges for extended delays in development beyond approved deadlines.
While the authorities did not publish exact numbers in the draft notice, previous rules show how this system works in practice, with annual fees hitting up to 10% of the land’s assessed value in top-priority development zones.In Riyadh, for example, different geographic priorities determine the percentage rate:
- 10% for highest-priority zones
- 7.5% for high priority
- 5% for medium
- 2.5% for lower priority
- And no fee for zones outside priority classifications.
Officials stress that the aim is not to punish landowners, but to encourage timely and productive use of land, easing pressure on housing and infrastructure.With public consultation open until January 11, 2026, the government is seeking input from landowners and market participants before the final penalties list is adopted. Once finalized, the system will begin full implementation, reshaping how land is used in Saudi cities, turning idle space into homes, shops, and vibrant neighborhoods. Go to Source
