Issuance of the Implementing Regulations for the White Land Fees (1447H – 2025)

Background of the White Land Fees System

The White Land Fees (WLF) programme was first introduced under the framework of the Saudi Vision 2030 Housing Programme as a policy tool to combat land hoarding and encourage the development of vacant land within urban areas. The term “white land” refers to undeveloped plots designated for residential or mixed-use purposes within cities that possess essential infrastructure and services.

The rationale behind the WLF system is to incentivise landowners to develop idle plots, thereby increasing the supply of housing units and improving the efficiency of urban land utilisation. By imposing an annual fee on undeveloped plots, the policy discourages speculative land retention and aims to narrow the supply-demand gap in the housing market.

Objectives of the Updated Regulations

The updated Executive Regulations for the White Land Fees (1447H – 2025) aim to reinforce the existing framework while addressing practical challenges observed during previous implementation phases. The Ministry has identified three primary objectives:

• Address the supply-demand gap in the real estate market: By accelerating land development and expanding the availability of residential plots, the regulations seek to stabilise prices and make housing more accessible to citizens.
• Enhance the efficiency of land utilisation: Encouraging development in serviced urban areas supports better infrastructure use and sustainable urban planning.
• Support housing projects and Saudi Vision 2030: The White Land Fees system directly contributes to Vision 2030’s goal of increasing home ownership and creating vibrant, well-planned cities.

Key Highlights of the Updated Regulations

The 2025 Executive Regulations introduce several refinements to improve transparency, compliance, and fairness in the application of the White Land Fees system. Among the most notable changes are the following:

• Clear fee brackets ranging from 2.5% to 10%, determined according to urban development priorities and the classification of cities or zones. This tiered structure ensures that the fee burden aligns with market dynamics and policy objectives.
• Strict application requirements, including a minimum land size of 5,000 m² and location within the defined urban boundary, ensuring the system targets land with genuine development potential.
• Fee suspension or refund provisions upon completion of development or construction within the prescribed period, encouraging timely project execution.
• Stronger compliance and collection mechanisms to promote fairness, prevent evasion, and ensure that the programme achieves its intended economic and social impact.

In addition, the updated framework introduces financial penalties for late registration or non-compliance, reinforcing the government’s commitment to enforcement and transparency. Landowners are encouraged to align early with the new requirements to avoid potential sanctions or delays in project approvals.

Implementation of the updated regulations is scheduled to take effect by the end of October 2025, marking a new phase in the ongoing evolution of Saudi Arabia’s urban land policy.

Strategic and Economic Impact

The issuance of the updated regulations represents a strategic intervention designed to promote greater balance and sustainability within the housing and real estate sectors. By ensuring that urban land is utilised efficiently, the revised framework fosters better land circulation, supports infrastructure investment, and creates new opportunities for both developers and investors.

The tiered fee structure and enhanced compliance measures are expected to reduce speculative landholding and encourage more active participation in the housing market. This in turn will contribute to moderating price fluctuations, improving affordability, and supporting the delivery of new residential projects across key Saudi cities.

Moreover, the integration of digital mapping tools and centralised data systems within the regulatory framework will improve administrative efficiency, transparency, and accuracy in assessing and monitoring white lands. This digital approach also enables MOMRAH to coordinate more effectively with municipal authorities, developers, and other stakeholders in the housing ecosystem.

Alignment with Saudi Vision 2030

The White Land Fees initiative remains a cornerstone of Vision 2030’s Housing Programme, which aims to raise homeownership rates, enhance urban sustainability, and improve the quality of life for citizens. By reforming the way urban land is managed and utilised, the policy helps unlock dormant assets, stimulate investment, and ensure that land resources are optimised for social and economic benefit.

The 2025 Executive Regulations underscore the Kingdom’s commitment to regulatory modernisation and evidence-based policy design. Through targeted financial mechanisms, enhanced enforcement, and transparent governance, Saudi Arabia continues to lay the groundwork for a more equitable, efficient, and resilient real estate sector.

Grant Thornton’s Perspective and Support

At Grant Thornton, we keep pace with these regulatory updates and provide our clients with:

• Specialised advisory services on compliance and risk mitigation
• Strategic planning for efficient white land management
• Accounting and tax solutions related to fees and penalties

We are here to support you in analysing, planning, and implementing practical solutions that ensure compliance and add value to your business. Contact us to learn how we can help you prepare for this new phase in Saudi Arabia’s evolving real estate landscape.

The Issuance of the Implementing Regulations for the White Land Fees (1447H – 2025) marks a pivotal moment in Saudi Arabia’s real estate reform journey. By introducing a more structured, transparent, and enforceable system, the new framework aims to promote land development, strengthen housing supply, and advance the ambitions of Saudi Vision 2030.

As the updated regulations come into effect by the end of October 2025, stakeholders across the property and construction sectors are encouraged to review their land portfolios, ensure compliance, and prepare for a more dynamic and sustainable phase of urban growth in the Kingdom.