RIYADH — Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail on Wednesday announced the geographic zones for white land fees in Riyadh, marking a major step toward regulating the property market and encouraging balanced urban development, in line with directives from Crown Prince Mohammed bin Salman. Al-Hogail said the new phase of the program enables landowners and developers to capitalize on opportunities while supporting the ministry's goals of increasing supply and achieving equilibrium in the real estate sector. Under the new framework, annual fees are imposed on undeveloped lands according to five tiers: * Priority Zone 1: 10% of land value * Priority Zone 2: 7.5% of land value * Priority Zone 3: 5% of land value * Priority Zone 4: 2.5% of land value * Outside priority areas: exempted from fees but counted within the owner's total undeveloped land holdings in the city The minister had earlier approved the executive regulations for the white land fee program, which stipulate that all land uses are subject to fees under the five-tier system. Only plots listed in official urban boundary maps are eligible, with the minimum qualifying size set at 5,000 square meters whether as a single plot or the cumulative holdings of one owner within Riyadh. A specialized technical committee, comprising licensed appraisers from the Saudi Authority for Accredited Valuers, will be formed to assess land values and set development timelines. Committee membership terms are three years, renewable. The ministry is mandated to review annually the availability of land and housing units, market activity, prices, and monopolistic practices in each city. Based on these reviews, it may decide to apply, suspend, or adjust the scope of the land fee program to ensure alignment with urban development priorities.
