<The Ministry of Municipalities and Housing (MoMH) has unveiled a comprehensive modernization of the mechanism for granting additional deadlines for the development of white land, as part of the new draft of the Executive Regulations for White Land and Vacant Properties Fees, which is currently on the "Explore" platform to collect comments from specialists and interested parties before its official adoption. This update comes to set a more accurate and strict framework regarding the granting of extension periods for the implementation of development or construction works, in order to improve the efficiency of projects, accelerate the stages of completion and minimize disruptions or unjustified exploitation of the statutory periods.

White Land and Vacant Properties Fees

Official requirements and mandatory documents

<The proposed regulations include requiring the taxpayer to submit an official request to extend the period related to the invoice to be postponed, provided that a valid document proving the approval of the raw land plan, building license, comprehensive development license, license to sell a real estate project on the map, or real estate shareholding license is attached to the request. The date of the document must correspond to the year of the invoice to be extended or issued before it, to ensure no manipulation or use of documents that do not reflect the legal status of the land during the fee period.

Mandatory timelines for projects

<The ministry also requires taxpayers to submit a detailed timetable from an accredited engineering office if the additional time required exceeds six months, while excluding off-plan sales projects and real estate contributions from this requirement as they are already subject to special regulatory systems. The new regulations emphasize that the timetable must specify the stages of development accurately, allowing the Ministry to follow up on the commitments effectively and directly.

<In the event that the taxpayer applies for an extension of more than four years, the ministry will be required to submit an additional engineering report issued by an office that holds a Baladi City Service Provider Classification Certificate, either first or second class, and includes the specialties of construction project management, engineering and architectural consultancy, as well as urban planning. This requirement comes to enhance technical reliability and ensure accurate assessments of the time required to complete the development.

This requirement comes to enhance technical reliability and ensure accurate assessments of the time required to complete the development.

Committee to estimate development durations and review applications

<The updated regulation gives the committee broad powers to determine the time needed to develop or build the land, based on a number of technical factors, such as the size of the land, the nature of its topography, the number of permitted floors and building areas, as well as the taxpayer's proposed timetable. After the extension is approved, the taxpayer is officially notified of the extension decision, and the additional period starts from the day after the expiration date of the previous invoice.

<If the taxpayer requests more than three years, the committee refers the request to the Real Estate Developer Services Center (TAMAM), which reviews the technical documents and ensures that the timetable is realistic and conforms to the recognized stages of construction or development. The center then submits its recommendation to the committee to make the final decision on accepting or rejecting the application. The center also prepares an indicative table of appropriate durations according to the type and nature of the project, to be a fixed reference on which the committee relies and is approved by the minister.

Regular follow-up and the possibility of canceling the additional deadline

The Ministry confirms that invoices issued during the extension period will be automatically extended until the end of the approved grace period. In return, the taxpayer is required to submit a semi-annual report issued by the engineering office supervising the project, indicating the actual percentage of completion on the ground. If the taxpayer fails to submit the report within 60 days of its due date, the committee has the right to cancel the deadline immediately. <The new regulations also allow the committee to cancel the additional deadline if it is proven that the taxpayer is not serious about implementation, or if it is found that there is a default that led to a deviation of the completion rate by more than 15% from the approved schedule. However, the committee gives the taxpayer one corrective opportunity not exceeding 180 days before making the final revocation decision.

In projects that are subject to the off-plan sales system or real estate contributions, the reports issued by the official regulatory authorities can be relied upon without the need to submit additional engineering reports.

Fees continue and no exemption during the extension period

<The Ministry of Municipalities and Housing clarifies that obtaining an extension does not exempt the taxpayer from paying the annual fees, as the financial obligation remains even after the extension is granted. The taxpayer will be required to pay the fees immediately upon the expiration of the approved grace period or when it is canceled if the development or construction is not completed.

Ministry of Municipalities and Housing <If the taxpayer wishes to sell the land during the extension period and before the development work is completed, the grace period granted is automatically canceled, and full payment of the fees is required before transferring ownership of the land. The Ministry also emphasizes that if the deadline expires without the completion of the project, the fees due for the regular period and the additional period will be collected together.