Okaz

The taxes imposed on undeveloped urban land, or “white land,” have helped fund the SR100 million Al-Uyaynah Housing Project in Riyadh. This shows the wisdom of the government in imposing white land taxes and implementing laws to organize and collect these taxes.

The taxes on white lands will activate investment and force owners of urban land that has remained unused for decades to develop it. These taxes will also help in funding new housing projects for the Ministry of Housing, and will increase the amount of money circulating in the real-estate economy. The use of white land taxes to fund the infrastructure of Al-Uyaynah Housing Project is in accordance with article 15 of executive regulations, which allows spending such taxes on developing infrastructure, to connect public utilities and provide public service.

All of those who underestimated the amount of white land taxes that could be collected and the effect such taxes would have on breaking the monopoly of the ownership of undeveloped land in cities and in curbing the increase in land prices and who also doubted that such taxes could be collected from powerful people are surprised today about the amount of tax revenue that has been generated.

There are 52 million square meters that are now developed or in the process of being developed. There are 2,500 payment orders, issued for a total of 411 million square meters of lands. Those who once doubted are now surprised at the direct effect on land prices and real-estate investment on large areas of urban land that have remained undeveloped for decades. These taxes were applied to all equally with no exceptions being made.