In brief
Imposes an annual fee on undeveloped white land within urban boundaries owned by natural or legal persons, to increase the supply of developed land and curb hoarding, with the right to object to fee decisions.
Summary of the law
Purpose and scope
- Imposes annual fees on undeveloped (white) land and on vacant properties within zones set by the Ministry, to increase the supply of developed land, provide affordable housing and combat monopoly (Article 2).
- The law was amended by Royal Decree M/244 of 7/11/1446H, which added vacant properties and raised the maximum fee.
Key rules, rights and obligations
- An annual fee of up to 10% of the value of white land owned by natural or legal persons, other than State property, is imposed under rules set by the regulations (Article 3 as amended).
- The Minister sets the zones and the land areas subject to the fee, provided the land or combined land is not less than 5,000 square metres (Article 3 as amended).
- Vacant properties are charged an annual fee as a share of market rent of up to 5% of the property's value, which the Council of Ministers may raise to 10% (Article 3 as amended).
- Landowners and those treated as owners must submit their land documents and data to the Ministry as the regulations provide, including new owners after the announcement period (Article 5 as amended).
- The property owner is primarily liable for fees and fines unless someone treated as owner pays them (Article 5 as amended).
Violations, penalties and common problems
- Breach of the law or regulations: a fine of up to the fee due on the land or vacant property, plus payment of the fee (Article 6 as amended).
- Common problems: not submitting data within the announced period, disputes over the land valuation, and transferring ownership without settling fees due.
Procedures and key deadlines
- Objection to a decision subjecting land or property to the fee, or to its valuation or the fee amount, is made in writing to the competent committee within sixty days of notification (Article 8 as amended).
- The committee decides within sixty days, and silence for that period counts as rejection (Article 8 as amended).
- Consult the regulations and ministerial decisions setting the zones and rates, which detail application in each city.
An advisory summary prepared by Al-Bayan Al-Wadih Law Firm. It is not an official text and does not replace the law, its implementing regulations, or advice from a specialised lawyer. The official published text and its amendments prevail.
What it covers
- Land subject to the fee
- Valuation and fee
- Objections
- Penalties
Timeline
- Issued: Royal Decree M/4 · 12/2/1437H
Full record of amendments and regulations at the official source
Official text at the Bureau of Experts
The authoritative text is in Arabic; the Bureau of Experts publishes English translations for some laws.
The Arabic text on this site was last matched with the official source on .
Full official text
The full official text is in Arabic and is reproduced on the Arabic version of this page, as published by the Bureau of Experts at the Council of Ministers. Read the full Arabic text
Library content is simplified general information for awareness only. It is not legal advice and does not replace the official text. Laws change: always check the official source and consult a lawyer before acting. Library data last reviewed: .