Recent disclosures on the Saudi stock market revealed that four listed real estate companies received bills and fees for undeveloped land during the first half of January 2026, with a total value of approximately 42.48 million riyals, as part of the implementation of the new phase of the vacant land fees system.
According to data from «Tadawul,» the fees were distributed among companies based on the nature and locations of the lands covered within the approved urban zones, with each company handling the received invoices differently—ranging from requesting extensions, filing formal objections, or exploring development options.
Details of disclosures by company
Enmar Real Estate Development and Investment Company announced that it had received fee invoices totaling 21.1 million riyals, relating to land located within the designated areas in the city of Riyadh, as part of the third phase of the 2026 cycle, noting its intention to apply for an extension to complete the development work.
In a separate disclosure, Ladan Investment Company stated that it had received notices of fees for undeveloped land totaling 2.56 million riyals, confirming its intention to file a formal objection to the invoices in accordance with approved procedures.
For its part, Riyadh Development Company reported receiving fee invoices totaling 16.78 million riyals, noting that it is in the process of reviewing them and completing the necessary regulatory procedures, including considering filing objections and exploring development options for the land subject to the fees.
As for Hamad Mohammed bin Saidan Real Estate Company, announced the issuance of 32 fee invoices totaling 2.04 million riyals, explaining that these fees are not expected to have a material financial impact on its results, while it remains committed to following the applicable regulatory procedures.
Start of Invoice Issuance and Enforcement Mechanism
Effective January 1, 2026, the Ministry of Municipalities and Housing began issuing invoices for fees on undeveloped land within the city of Riyadh, while allowing applicants to request an extension for development upon approval by the relevant committee, provided that the fees will be due in full if development is not completed within the specified period.
The Ministry aims to use these vacant land fees to increase transparency in the real estate market and incentivize landowners to develop their properties within the urban area, thereby contributing to an increase in supply and achieving a better balance between supply and demand. The fees are applied at graduated rates ranging from 2.5% to 10% depending on the priority category, with an annual review of the application mechanism to ensure the system’s objectives are met and to support the stability of the real estate market.
