How a Landowner Avoided Paying 2 Million SAR in White Land Fees

How a Landowner Avoided Paying 2 Million SAR in White Land Fees

The facts:

 In 1440H, the Ministry of Housing imposed 2 million SAR in fees on a waterlogged plot in the Eastern Province.
The owner challenged the decision before the Administrative Court.

Owner’s Arguments:

• The land was submerged, not vacant, requiring reclamation & environmental studies.
• Faced over 40 transactions with government agencies.
• Began development procedures before the law was issued.
• The law exempts lands hindered by genuine obstacles.

Ministry’s Arguments:

• Fees are only waived once development is fully completed.
• Government procedures are part of development, not an obstacle.

The Turning Point:

A municipal letter confirmed the land was submerged, required complex approvals & studies, and that the owner was genuinely pursuing development.

The Judgment:

• Fees (2 million SAR) cancelled.
• Judgment upheld on appeal.
• The court ruled that environmental & procedural barriers were sufficient grounds for exemption.

Legal Takeaway:

A genuine, documented obstacle (natural or procedural) beyond the owner’s control exempts white land fees.

Advice from Al-Salamah Law Firm:

• Show genuine intent to develop.
• Keep all your records and documents.
• Consult a specialized lawyer before filing an objection or appeal.