At a time when the pace of regulatory reforms in the real estate market is accelerating, white land fees are no longer merely a regulatory tool; rather, they have become a significant factor influencing the financial results of listed real estate companies. The new figures reveal a striking jump in the value of paid bills, with Dar Al-Arkan topping the list.
A surge in white land fees
Recent data published on «Tadawul Saudi» showed a rise in the total white land fees on listed real estate companies to approximately 310 million riyals, a clear indication of the expanded scope of the fees and the rising value of the land subject to them.
The figures reveal a clear disparity among companies in terms of the size of their financial obligations, depending on the size and location of their undeveloped land within urban areas.
Dar Al-Arkan Leads the Way
Dar Al-Arkan topped the list, recording the highest bill amount at approximately 201.2 million riyals, representing about 25% of total bills. This reflects the company’s large land portfolio within the fee-covered areas and presents it with strategic choices regarding development or asset restructuring.
Al-Aqaria and Inmar… Notable Figures
In second place was Al-Aqaria, with bills totaling 61.6 million riyals, representing approximately 29% of the total bills, followed by Enmar with 21.2 million riyals, accounting for 31%, indicating that major real estate companies have been the most affected by the implementation of the fees.
Other Companies... Varying Impact
The list also included a number of other companies with relatively lower invoices, among them:
Riyadh Development: approximately 16.8 million riyals
Taybah Investment: Approximately 3 million riyals
Jadwa REIT, SASCO, and other companies with amounts ranging between 1.7 and 2.6 million riyals
This variation reflects the differences in business models and the size of undeveloped land holdings for each company.
Regulatory Messages for the Market
These figures reflect the success of the vacant land fee policy in pushing companies to develop or repurpose hoarded land, thereby contributing to an increase in real estate supply and achieving market balance, especially in major cities.
Experts believe that the continued rise in fees will force companies to accelerate their development plans, enter into partnerships, or even divest some of their land holdings, which could have a positive impact on market activity and the availability of residential properties.
Although these fees represent a direct financial burden on companies, they also open the door to new investment opportunities by stimulating development and increasing land-use efficiency—which may translate into higher revenues and profitability in the medium and long term.
