The Saudi cabinet presided by His Highness King Salman has approved imposing an annual fee on undeveloped lands all around the kingdom.
The cabinet announced that it would impose a 2.5% fee on undeveloped urban lands earmarked for residential or commercial development.
The fee value is based on the kingdom’s advisory Shura Council suggestions. The undeveloped lands fee issuance is considered a major step taken by the Saudi government to solve the housing crisis in the kingdom and the hiking properties prices particularly in the urban areas.
Rani Majzoub, head of real estate at KPMG in Riyadh, mentioned that this decision will have positive implications on the Saudi economy as it will encourage more development and construction, however, properties prices won’t flat out, according to Rani.
Still the law regulations need to be determined including the values of land eligible for taxation, timeframe, and many other details.