Housing Minister Majid bin Abdullah Al-Hogail said that the Cabinet’s decision regarding the vacant land fee system underscores the wise leadership’s commitment to addressing citizens" needs and facilitating their access to suitable housing, noting the role of the Council of Economic and Development Affairs in issuing this decision.
He added that the decision encourages owners of undeveloped land to develop their properties and increase the supply of developed land, thereby achieving a balance between supply and demand, providing housing units at affordable prices, safeguarding fair competition, and combating monopolistic practices. He expressed his hope that the system would achieve the intended benefits, noting that the Ministry of Housing is seeking to implement this system in a manner that ensures the achievement of its goals and objectives.
He noted that one of the objectives of the vacant land fee system is to enable citizens to obtain suitable housing units, adding that the Ministry of Housing prioritizes the interests of citizens above all else and encourages market participants to work toward greater harmony and consensus.
Al-Hogail emphasized that the system was not introduced merely to impose fees on vacant land; rather, there are incentives and exemptions that will be implemented alongside the vacant land fee system, as the directives of the Custodian of the Two Holy Mosques, His Royal Highness the Crown Prince, and His Royal Highness the Deputy Crown Prince have emphasized the need to establish incentives and exemptions for real estate developers and investors and to create an attractive, competitive environment, noting that the system will be implemented gradually to strike a balance between supply and demand, targeting large tracts of land in major cities that are in greater need than others of suitable land for urban development projects.
The Minister of Housing expressed his thanks and appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, His Royal Highness the Crown Prince, and His Royal Highness the Deputy Crown Prince —may God protect them—on the occasion of the decree’s issuance.
