Saudi Arabia raises white land tax to 10%, introduces annual levy on vacant properties
RIYADH — Saudi Arabia has approved amendments to its White Land Tax Law, raising the annual levy on undeveloped land from 2.5% to 10% of its value and introducing, for the first time, an annual tax on long-vacant properties without justified use.
The changes, passed during Tuesday's Cabinet session, are aimed at boosting property development and increasing housing supply, as the government works to address rising real estate prices.
The Ministry of Municipal and Rural Affairs and Housing announced plans to offer housing units across various regions in partnership with private developers, priced between SR250,000 and SR1.2 million.
The initiative targets raising Saudi homeownership to 66% this year, according to Minister Majed Al-Hogail during a recent government press conference.
The amendments also unify the tax application stages, with the annual tax now covering individual or combined landholdings of 5,000 square meters or more within designated urban zones.
Previously limited to residential and commercial land, the scope has expanded to include any undeveloped land suitable for development.
Regulations for white lands will be issued within 90 days, while rules governing vacant property taxation are expected within a year.
Minister Al-Hogail acknowledged the sharp rise in real estate prices in Riyadh but noted that Crown Prince Mohammed bin Salman had issued swift and firm directives to ensure property prices align with industrial, agricultural, commercial, and housing growth.
© Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Middle East Eye
40 minutes ago
- Middle East Eye
Iran launches missiles towards US bases in Qatar
Iran said it launched a "devastating and powerful" missile attack at the United States' Al-Udeid base in Qatar on Monday, in retaliation for the US strikes on their nuclear facilities over the weekend. Eyewitnesses reported to Middle East Eye seeing blasts from across Doha. Video footage shared with MEE showed missiles flying above the gleaming skyscrapers and marina of the Qatari capital. In another video, air defence systems appeared to be engaging the missiles. Qatar's Al Jazeera news network cited the defence minister as saying that Qatari air defence systems intercepted missiles fired at Al-Udeid and aired footage of fallen debris assumed to be from a missile interception. "The State of Qatar strongly condemns the attack that targeted Al-Udeid Air Base by the Iranian Revolutionary Guard. We consider this a flagrant violation of the sovereignty of the State of Qatar, its airspace, international law and the United Nations Charter," Qatari's foreign ministry spokesman Majed Al-Ansari said. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters His statement called for an "immediate cessation of all military actions and for a serious return to the negotiating table", adding that "the State of Qatar was one of the first countries to warn against the dangers of Israeli escalation in the region". There were no casualties or injuries to Qatari armed forces or "friendly forces" from the attack, the statement added. Qatar is home to the US's Al-Udeid military base, which hosts roughly 10,000 soldiers and serves as the regional headquarters for US Central Command (CENTCOM). CENTCOM directs US military operations across territory stretching from Egypt to Kazakhstan. At least 10 missiles were launched towards Qatar from Iran and at least one missile was launched towards Iraq, according to a report by Axios. Reuters reported that an air defence system was also activated at the US's Ain al-Asad airbase in Iraq and Tasnim News Agency, an Iranian state-run outlet, said that both Qatar and Iraq were targets of the retaliation. Earlier, before the reports of an attack, Qatar had temporarily closed its airspace. This is a developing story.
Web Release
2 hours ago
- Web Release
Jadwa Acquires Majority Stake in Leading Retailer Makhazen Alenaya Through its GCC Diversified Private Equity Fund
Jadwa Investment, a leading investment management and advisory firm in the Middle East, today announced the acquisition of a majority stake in Makhazen Alenaya through its flagship blind-pool vehicle, Jadwa GCC Diversified Private Equity Fund. Founded in 2019, Makhazen is a fast-growing Saudi retail concept with 15 branches across the Kingdom. The company has redefined the beauty and personal care sector by pioneering an emerging retail format: the multi-category specialist. Makhazen offers a wide, curated product range at consistently affordable prices and through a premium one-stop-shop experience. Backed by strong consumer traction and a scalable operating model, the company is poised to expand its footprint across Saudi Arabia. The transaction marks Jadwa's fourth investment under Jadwa GCC Diversified Private Equity Fund (formerly known as GCC Private Equity Fund I). The fund's prior investments include Gissah Perfumes, Blackspoon Group, and Tikkaway. Tariq Al-Sudairy, Managing Director & CEO of Jadwa Investment, commented: 'We are pleased to partner with Makhazen Alenaya in our second investment in the region's retail sector. The transaction reflects our confidence in the Kingdom's evolving consumer landscape, supported by far-reaching economic reforms and a shift toward modern retail formats.' Elie El-Khoury, Head of Private Equity at Jadwa Investment, added: 'Makhazen is a clear category leader in a fast-evolving retail landscape. It pioneered value-driven pricing with premium customer experience, which sets it apart from traditional formats and positions it for significant growth. This investment reflects our strategy to back high-growth businesses with scalable, defensible platforms.' Speaking on behalf of Makhazen Alenaya, Abdullah Almudaihesh, Co-Founder and CEO, stated: 'Partnering with Jadwa Investment marks a defining milestone in Makhazen's journey. We will leverage Jadwa's deep expertise to accelerate our growth, strengthen our operational capabilities and governance, and unlock long-term value. This partnership will reinforce our leadership position in the Kingdom's beauty and personal care sector and lay the foundation to list on the Saudi Exchange's Main Market.'
Arabian Post
3 hours ago
- Arabian Post
Etihad Rail Strengthens Abu Dhabi Infrastructure Collaboration
Arabian Post Staff -Dubai Etihad Rail and Abu Dhabi authorities have formalised a strategic partnership aimed at aligning rail infrastructure planning with the emirate's broader development goals. The initiative centres on coordinated knowledge exchange around studies, designs, engineering, and strategic development, supporting the integration of Etihad Rail's projects into Abu Dhabi's urban and economic landscape. The agreement, endorsed by Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail, underscores the importance of a fully integrated transport ecosystem. Shadi Malak, CEO of Etihad Rail, confirmed that the collaboration spans infrastructure studies, engineering tender layouts and development planning to ensure rail projects dovetail seamlessly with Abu Dhabi's urban expansion. ADVERTISEMENT This forms part of a broader wave of recent MoUs signed by Etihad Rail during the Global Rail 2024 conference. Memorandums were inked with a range of international entities—from transport‑focused to tech innovators—to enrich its projects. These include partnerships with Presight AI for AI-driven operational insights; RITES Ltd and South Korea's KNR/KORAIL on engineering and construction expertise; Austria's WKÖ for planning cooperation; L&T Technology Services for establishing a national mobility innovation centre; as well as technical alliances with IronLev, Nevomo, Hitachi and Singapore's SBS Transit. One high‑profile partnership saw Etihad Rail team up with COSCO's CSP Abu Dhabi CFS—a key freight terminal operator—under an MoU to bolster multimodal connectivity, enhance logistics flows via rail, and reduce CO₂ emissions, aligning with Abu Dhabi's Net Zero by 2050 target. The newly reinforced Abu Dhabi alignment focuses on future passenger services and urban sprawl. While Etihad Rail Stage One and Stage Two freight operations stretch more than 900 km across the UAE, passenger services are under preparation. The Abu Dhabi–Dubai high‑speed link, capable of up to 350 km/h journeys in as little as 30 minutes, has moved through tendering and design finalisation phases. Six passenger stations—including Reem, Saadiyat and Yas Islands plus two in Dubai—are to be integrated with metro and bus networks. Experts highlight the economic uplift from such rail integration. Mohammed Al Shehhi, Chief Projects Officer, noted that the Abu Dhabi–Dubai high‑speed route could add AED 145 billion to GDP over fifty years, enhancing social cohesion and sustainable mobility. The collaboration also intersects with major sustainability initiatives. The Ghuweifat freight terminal, which handles cargo from the Saudi border, has been solarised in partnership with Masdar and EDF's Emerge JV—a project designed to cover 85 % of its power needs, saving over 8 500 tons of CO₂. Rail freight services aim to cut emissions in road transport by 21 % annually by 2050—roughly 8.2 million tonnes of CO₂ per year. On the regional integration front, Etihad Rail, Oman Rail and Mubadala launched Hafeet Rail—a 300 km link through Al Ain to the port of Sohar. With a US $3 billion contract signed in April 2024, trains are expected to run at 200 km/h and connect Abu Dhabi to Omani ports in just over 100 minutes. Etihad Rail's development timeline follows a phased rollout. Stage One became fully operational for freight in January 2016. Stage Two launched freight services in February 2023, completing a 900 km network. Passenger services are yet to be scheduled publicly, though station planning and tendering details are advancing rapidly. Engineer analysts suggest this partnership framework marks a pivotal shift. By embedding knowledge exchange—covering everything from preliminary studies and engineering specifications to strategic transit modelling—Etihad Rail looks to avoid siloed project delivery. Instead, it positions rail development as core to Abu Dhabi's urban vision, supported by a holistic transport network and sustainable infrastructure policy. Public sector observers note the involvement of ADQ, through Etihad Rail, aligns with Emirate-level economic strategies such as Abu Dhabi Economic Vision 2030 and broader UAE Vision 2021. The rail strategy supports logistics, tourism growth, environmental goals, and inter-emirate connectivity. It is built to support freight services now and evolve into passenger transport, high-speed travel, and international rail links. An Abu Dhabi infrastructure planner stated: 'This marks a meaningful move from planning rail as a standalone corridor to delivering integrated mobility that ties directly into the emirate's urban, economic and environmental objectives.' Rail specialists emphasise digital and technical partnerships as vital. Collaborations with AI, mobility-as-a-service, maglev and autonomous rail firms reflect Etihad Rail's push toward a technology-driven, future-ready rail network.
