The issue of imposing fees on undeveloped land has garnered significant attention from real estate professionals and landowners, who are watching with great caution to see how the decision currently under consideration by the Shura Council will play out, Sources report that Council members have emphasized the importance of ensuring there are no exemptions from land tax payments anywhere in the country, and that the system be strict, firm, and effective for all segments of society.

Recommendations Against Manipulation and Evasion

A number of Council members noted in their recommendations the need to protect the rights of affected citizens. A mechanism has been established to provide them with housing at affordable prices, including the imposition of fees on all sizes and areas of land without specifying the area within the urban zone, out of concern for manipulation and price gouging through the division of land into plots that are exempt from land fees, which contributes to depriving citizens of the ability to purchase a home, The recommendations called for fees to apply to all land areas and to be calculated as a percentage rather than a fixed amount, and for them to be based on the value of the land rather than the area of all plots owned by the property owner.

Complete secrecy surrounding the housing issue

At the same time, complete secrecy has surrounded the issue of fees on undeveloped land within the Shura Council, which received the file on October 19, and, unusually, the Shura Council Secretariat prevented members from obtaining hard copies of the draft bill—contrary to previous practice for topics up for discussion. Instead, it uploaded the draft land fees bill to the Council’s electronic system at exactly 8:00 a.m., and then displayed it to members on the electronic screens in front of each member during more than three hours of deliberations and discussions on the bill, from 10:00 a.m. to 1:30 p.m., in order to maintain confidentiality due to the sensitivity of the issue.

15 Items on the Agenda

In the same context, the Housing and Services Committee submitted 15 items for discussion, during which many members offered their comments on the proposed items and presented their recommendations and views, by the specified deadline, especially since the Council will vote on the bill within the next two weeks. The report presented by Committee Chairman Mohammed bin Dakhil Al-Mutairi reviewed the bill’s organizational provisions and the amendments made by the committee to its provisions.

At the end of the discussion, the Council agreed to grant the committee more time to study the opinions and proposals put forward by the members and to present its views to the Council at a future session in preparation for the vote.

Shura Council Chairman Praises “Committee”

Dr. Abdullah Al-Sheikh, Speaker of the Council, praised the efforts of the chair and members of the Hajj, Housing, and Services Committee, as well as all members who participated with them, in studying the draft regulatory arrangements for imposing a fee on vacant land, noting that the committee had been in continuous session over the past few days, including the weekend, to complete its review of the draft within a short period, thereby enabling the Council to make a decision on it within 30 days of its referral to the Council by His Majesty, in accordance with the royal directive.