Saudi Arabia Unveils Tougher White Land Rules, Fines May Reach 100% of Land Value

• Draft rules propose fines of up to 100% for serious violations

• Undeveloped urban landowners urged to build or face penalties

• Public consultation open until January 11, 2026

Saudi Arabia is set to tighten control over undeveloped urban land as the Ministry of Municipalities and Housing (MOMAH) released draft regulations introducing stricter penalties under the White Land and Vacant Properties Fees system. The move signals a strong push to curb land hoarding and accelerate real estate development across the Kingdom.

The draft regulations, currently open for public feedback on the government’s Istitlaa consultation platform, outline violations and penalties that could see fines rise sharply—up to 100% of the land’s value in certain cases. The consultation will remain open until January 11, 2026, before the rules are finalised.

According to MOMAH, the proposed framework aims to strengthen compliance with existing White Land laws, improve fee efficiency, and expand the supply of developed land and housing units. Authorities say the policy is designed to restore balance between real estate supply and demand, protect fair competition, and discourage monopolistic land practices.

How the White Land System Works

The White Land Fees system targets undeveloped plots within city boundaries, particularly large parcels measuring 5,000 square metres or more in designated urban zones. Rather than serving as a passive investment, such land is expected to be developed to support housing, commercial activity, and infrastructure growth.

Officials say the policy is part of a broader urban planning strategy to address housing shortages and rising property prices in high-demand cities. Landowners are given procedural safeguards, including the ability to request development deadline extensions and appeal fee assessments. Review committees are required to respond within fixed timeframes.

Penalties and Fee Structure

The newly proposed penalties focus on compliance failures rather than immediate punishment. These include fines for:

• Failure to register land before invoicing

• Delayed or missing documentation submissions

• Development delays beyond approved timelines

While the draft does not specify final penalty amounts, existing White Land rules offer a clear reference. In priority zones, annual fees can reach up to 10% of the land’s assessed value. In cities like Riyadh, rates vary by location:

• 10% for highest-priority zones

• 7.5% for high-priority areas

• 5% for medium-priority zones

• 2.5% for lower-priority areas

Zones outside designated priorities are exempt from fees.

MOMAH has reiterated that the goal is not punitive action, but the productive use of land to support housing delivery, infrastructure expansion, and sustainable urban growth. Once finalised, the updated rules are expected to significantly reshape land ownership behaviour, transforming idle plots into active residential and commercial developments across Saudi cities.