The Council of Ministers, chaired by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, decided at its session held at Al-Yamamah Palace in Riyadh, recently. Approval of the White Land Fees System after considering the Shura Council Resolution No. (112/65) dated 5/2/1437 AH

A royal decree has been prepared.

The main features of the system include:

The following

1 - The system imposes an annual fee on each vacant land allocated for residential or commercial residential use within the boundaries of the urban area, owned by one or more natural or legal non-governmental persons, at a rate of (2.5 %) of the value of the land, provided that the executive regulations of the system determine the criteria for estimating the value of the land and the timetable for applying the fee gradually and the necessary controls to ensure fairness and prevent evasion from paying the fee.

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2 - The system requires that the amounts of fees and fines collected from violators of the system be deposited in a special account with the Saudi Arabian Monetary Agency to be allocated for spending on housing projects, connecting public utilities to them and providing public services in them.

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3. The system requires the Ministry of Housing to prepare the executive regulations in coordination with the relevant authorities and to be issued by a decision of the Council of Ministers within one hundred and eighty days from the date of issuance of the system, and that this system shall come into effect one hundred and eighty days after its publication in the Official Gazette.

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The Cabinet also decided to approve the executive regulations of the system of expropriation of real estate for public benefit and temporary seizure of the property.