How the White Land Fees System Is Reshaping Riyadh’s Urban Map by 2030
Several publicly listed companies on the Saudi stock market have announced that they are now subject to the new Implementing Regulations of the White Land Fees Law.
For example:
- Dar Al Arkan owns approximately 2.65 million square meters of land within Riyadh’s white land fee zone, subject to a 5% fee rate.
- Al Riyadh Development Company holds multiple land plots in Al Rimal, Al Deerah, and Al Malqa districts all of which are now subject to the updated regulation.
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As a result, these companies and others are now paying annual fees of no less than SAR 1 million each. This recurring cost is expected to drive landowners to develop or sell their undeveloped plots, a move that will significantly reshape Riyadh’s urban fabric by 2030.
In this article, Salamah Law Firm highlights the projected impact of these developments.
Real Estate Strategy and Vision 2030
Saudi Arabia’s real estate development strategy under Vision 2030 is built on several key objectives:
- Enhancing land-use efficiency within cities.
- Balancing supply and demand in the real estate market.
- Positioning the real estate sector as a key driver of non-oil economic growth.
Main Real Estate Objectives under Vision 2030:
- Increase the homeownership rate among Saudi citizens to over 70% by 2030, through programs such as Sakani, subsidized financing, and public-private partnerships.
- Improve quality of life in Saudi cities through better infrastructure, urban services, green spaces, and public amenities.
- Encourage real estate investment, including foreign participation, by modernizing regulations like the Real Estate Registration Law, Real Estate Brokerage Law, and updated tenancy and property laws.
- Stabilize land prices through the White Land Fees System, which aims to combat monopolization and promote development of idle urban land.
How the White Land Fees Will Reshape Riyadh’s Urban Landscape
The application of the White Land Fees in Riyadh is expected to transform the city’s urban map through multiple mechanisms by 2030:
1. Stimulating Development and Land Utilization
The fees are designed to encourage owners of undeveloped or partially developed plots within the urban boundary to either develop or sell them to developers.
This reduces the problem of land hoarding, which has long hindered organized urban growth.
As more lands are developed, the supply of residential and commercial plots increases, potentially stabilizing or even lowering land and property prices in the long run.
It also compels utilization of land identified in urban master plans, supporting guided development and reducing urban sprawl.
2. Impact on Urban Density and Vertical Growth
Rather than continuous horizontal expansion at the city’s edges, the system promotes more efficient use of inner-city land.
This is likely to increase population density in certain districts and drive a shift toward vertical development (multi-story mixed-use buildings) to accommodate more residents and businesses within limited space.
With fewer large undeveloped plots, developers are expected to pursue integrated mixed-use projects, combining residential, commercial, and service spaces creating more dynamic and vibrant urban zones within Riyadh.
3. Improving Quality of Life and Service Accessibility
Developing land within the existing urban area makes it easier and more cost-effective for government authorities to provide essential infrastructure and public services (schools, hospitals, parks, roads).
Compact urban growth also reduces the need for long commutes, helping alleviate traffic congestion and improve air quality.
Furthermore, by stimulating development in various areas, the fees help promote a more balanced distribution of housing and investment opportunities across the city.
4. Supporting Major Projects and the City’s Future Vision
Revenue generated from White Land Fees contributes to funding public infrastructure and utilities projects, supporting the city’s sustainable growth and the broader Vision 2030 goals.
The system reinforces principles of urban sustainability, encouraging optimal resource use and channeling development toward serviced zones.
Frequently Asked Questions (FAQs)
What are the conditions for land to be subject to White Land Fees?
The land must be undeveloped (“white”).
It must be suitable for development or construction.
It must be located within an announced fee application zone.
The total area owned by one person within the city’s fee zone must not be less than 5,000 square meters.
The land’s use must align with the categories specified in the regulation.
How can I find out which category (tier) my land falls under?
Consult Salamah Law Firm, which communicates directly with the relevant authorities on behalf of clients to determine the land’s tier and the applicable annual fee percentage.
What is the timeframe for paying the fee?
The fee must be paid within one Gregorian year from the date the fee invoice is issued.
How can I appeal a White Land Fee decision?
You may submit an appeal to the competent committee at the Ministry of Housing within 60 days from the date you are notified of the decision.
What is the appeal period?
60 days from the date of notification.
What is the timeframe for filing a grievance?
There is no specific time limit for filing a grievance.
court has jurisdiction over grievances related to White Land Fees?
The Administrative Court (Board of Grievances) is the competent authority for hearing such cases.
Conclusion
By 2030, Riyadh is expected to witness more concentrated and sustainable growth, with increased population and structural density in inner-city areas, and a noticeable reduction in vacant plots within the urban boundary.
New or significantly redeveloped neighborhoods will emerge, while existing areas will undergo revitalization to accommodate population and economic growth.
This transformation will likely create vibrant, interconnected urban centers, reshaping Riyadh’s traditional horizontally expanding cityscape into a more integrated and sustainable metropolis.
Salamah Law Firm provides comprehensive legal consultations and support to help clients understand the new White Land and Vacant Property Fees Law and its Implementing Regulations.
If you wish to file a formal objection, Salamah Law Firm is ready to represent and assist you with full legal expertise.
