This is why the Executive Directors of the IMF's Executive Board issued a statement on the Article IV consultations on the Saudi economy recently. Therefore, the recommendation issued by the Executive Directors of the International Monetary Fund's Executive Board in their statement on the recent Article IV consultation on the Saudi economy, the need for additional revenues for the state, including the imposition of a tax and fees on white lands that spread in the Kingdom's large cities in a noticeable way, which had a great impact on compounding the housing crisis in the Kingdom.
Economic analysts have argued that the Saudi economy, which has experience and expertise in absorbing global economic shocks, has a solid and strong foundation. <Economic analysts have argued that the introduction of VAT to the recommendation (imposing fees on white lands) is one of the most successful means of raising other revenues, which is worthy of logical analysis backed by approximate figures that confirm what we went. <The language of numbers and data says that the area of white lands in the Kingdom's major cities (Riyadh, Mecca, Jeddah, Medina, Dammam and Khobar) is about 50% on average from its urban range and the white areas reach more than 3,700 square kilometers, or more than 3.7 billion square meters. It can accommodate more than 7.4 million families and provide them with comfortable housing, which is a radical solution to the housing issue if it is utilized in the optimal way, in addition to that such vast and large areas generate estimated revenues for the public treasury if the fees are approved.
<It was previously reported in the news that the Ministry of Housing circulated a proposal to determine the fees according to the proximity of the land to the city center so that the highest limit is 120 riyals per meter and the lowest fee is 10 riyals per meter, this would be equivalent to about 11 dollars, which means revenues that may reach 160 billion riyals annually. These amounts compensate for oil losses of approximately 14 dollars per barrel, which reduces the impact of the collapse of oil prices from 100 riyals to 50 riyals per barrel.
From another angle, if these lands are developed, there will be a huge economic movement in all service sectors, contracting, building and construction sectors, and the retail sector will witness a great revival as the new neighborhoods need an integrated service package (grocery stores - laundries - vegetable stores - gas stations - etc.) (schools - hospitals - banks) and all service centers and all companies that provide consumer products, in addition to the job opportunities that will be provided by this data and the new companies and their new branches that will spread in the new neighborhoods and city extensions.
These are the amounts that compensate for the losses of oil by $14 per barrel, i.e. the impact of the collapse of oil to 50 riyals per barrel.
