As part of the ongoing efforts to regulate the real estate sector and achieve a balance between supply and demand, the Council of Ministers approved substantial amendments to White Land Fees System, a qualitative shift aimed at enhancing the efficient use of unused land and buildings and stimulating real estate development in line with the objectives of the Kingdom's Vision 2030. These amendments, which came under the direct guidance of His Highness the Crown Prince, represent an important shift in the course of real estate policies towards a fairer and more transparent market.

The Minister of Municipalities

His Excellency the Minister of Municipalities and Housing, Mr. Majid bin Abdullah Al Haqeel, raised the highest thanks and gratitude to the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Highness the Crown Prince - may God protect them - on the occasion of the Cabinet's approval of the new amendments to the White Land Fees system.

. <His Excellency stressed that these amendments came in implementation of the recent directives of His Highness the Crown Prince, which aim to create an effective balance in the real estate market and promote the optimal use of unutilized land and buildings. He pointed out that the new amendments would contribute to the development of white lands and stimulate the housing and real estate supply in support of the objectives of the housing program as one of the programs of the Kingdom's Vision 2030.

Haqeel explained. <Al-Haqeel explained that the approval of these amendments represents an important step towards enhancing the efficiency of the real estate sector in the Kingdom and raising its attractiveness for local and international investment. He also announced that the executive regulations of the system will be issued within 90 days from the date of its publication in the Official Gazette, while the regulations related to vacant properties will be issued within a year from the date of publication. This update comes within an integrated legislative system aimed at developing the regulatory environment for the real estate sector, in line with the economic and investment movement in the Kingdom, enhancing the sustainability of cities and limiting real estate monopolies.

This update comes within an integrated legislative system aimed at developing the regulatory environment for the real estate sector, in line with the economic and investment movement in the Kingdom.

The most prominent amendments to the system include:

Imposing fees on vacant properties within the urban area, at a rate not exceeding 5% of the annual like-for-like rent, as determined by regulations.

<Raise the upper limit of the annual fee to 10% of the property value. <Reconsidering the areas on which the fee is levied, provided that the area of the land or total land is not less than 5,000 square meters within the approved area. <The system includes vacant properties, which the system defines as buildings that are ready for use and prepared for occupancy within the urban area, but are not utilized for a long time without an acceptable justification, which leads to a weak real estate supply. <Adopting unified and accurate databases to apply the fees fairly and transparently, and providing clear mechanisms for objection and grievance. <Apply the system to all regions of the Kingdom.

These amendments constitute an effective regulatory tool aimed at improving the efficiency of land and real estate utilization, serving citizens and the real estate market alike, enhancing the quality of life and contributing to the achievement of the Kingdom's development goals.