Saudi Real Estate Company's Riyadh Land Subject to 'White Lands' Fees

Saudi Real Estate Company Faces 'White Lands' Fees in Riyadh

The Saudi Real Estate Company, also known as Al-Aqaraiyah, has confirmed that a substantial area of its land holdings in Riyadh, totaling 487.8 thousand square meters, will fall under the government's 'White Lands' fee program. This announcement highlights the ongoing implementation of a key national policy aimed at influencing land use and development within the Kingdom's urban centers.

Understanding the 'White Lands' Initiative

The 'White Lands' program is a strategic initiative by the Saudi Arabian government designed to encourage the development of undeveloped land within urban areas. Its primary objective is to curb land speculation and increase the supply of housing and commercial properties. By imposing fees on vacant plots, the government seeks to motivate landowners to either develop their properties or sell them, thereby making real estate more accessible and affordable for citizens.

This policy is particularly significant in rapidly growing cities like Riyadh, where demand for housing continues to rise. The fees apply to specific types of undeveloped land that meet certain criteria and are located within designated urban perimeters.

Impact on Al-Aqaraiyah and Other Developers

For Al-Aqaraiyah, a prominent player in the Saudi real estate sector, the identification of nearly half a million square meters of its land as subject to these fees underscores the broad reach of the government's policy. This situation will likely prompt the company to re-evaluate its development timelines and investment strategies for these specific plots in Riyadh.

Other major landowners and developers across the Kingdom are also affected by these regulations, which are a critical component of Saudi Arabia's Vision 2030 plan. The vision aims to diversify the economy, improve urban infrastructure, and enhance the quality of life for residents by ensuring a more dynamic and responsive real estate market.

Upcoming Deadlines and Penalties

Landowners in Riyadh are currently operating under a strict timeline for compliance with the 'White Lands' program. Reports indicate that there are approximately 45 days remaining for the registration phase of these lands within the capital. Failure to register or comply with the development requirements carries significant financial implications.

Penalties for non-compliance can be severe, potentially reaching up to 100% of the land's value. These stringent measures demonstrate the government's resolve to ensure the program achieves its intended goals of stimulating construction and reducing the hoarding of undeveloped urban land.

What happens next

Al-Aqaraiyah and other landowners with identified 'white lands' will need to prioritize their development plans or face substantial financial penalties. The upcoming registration deadline will likely see an increase in activity as companies seek to comply. The government will continue to monitor the impact of these fees on the real estate market, potentially adjusting the program as needed to meet national housing and development objectives.