Executive regulations for white Land fees in Saudi Arabia

The executive regulation of white Land fees in Saudi Arabia: a complete guide + how the engineering consulting office helps you

Introduction

Saudi Arabia issued the updated executive regulation of white Land fees and published in the Official Gazette Umm Al-Qura on August 22, 2025, as part of a package of reforms aimed at stimulating urban development, increasing the housing supply, and reducing the monopoly of undeveloped land within urban areas.

The regulation confirms that the fees may be up to 10% of the land value (with a basis of 2.5% subject to increase according to the criteria mentioned later) according to the priorities of Urban Development and the market reality in each city.

What is meant by”white lands?" Who is subject to fees

The modifications define the” White Earth " as every land of space that is amenable to development or construction within the boundaries of the urban scale. Amendments were also made to the system later to become known as the system of fees for white Land and vacant Real Estate (with the list of vacant Real Estate issued within a year of the publication of the system, according to official sources).

Terms of submission for drawing (abbreviated):

It should be a white land that can be developed/built.

Within the scope of application of the declared drawing for each city.

The land area – or the total area of one owner within the range – should not be less than 5,000 m2.

When do the fees apply (Activation criteria within the city)

The regulation confirms that the application of the drawing within a city / geographical range is related to market and urban criteria, the most prominent of which are: the supply and demand gap, price inflation, lack of supply of developed land, the monopoly of white Land and its lack of development, and the percentage of white within the range. The ministry reviews these indicators annually to decide on the continuation of the application, its suspension or modification of the subject areas.

The mechanism of calculating fees and their ratios

The basic percentage is 2.5% of the land value, and it can be gradually raised up to 10% according to development priorities, market realities, and technical criteria (location, usage, building regulations, availability of services, population density, supply and demand... etc.).

A competent technical committee shall assess the value of the land and determine the terms of its development/construction, and issue its decisions in accordance with the announced controls.

An important regulatory note: the government indicated that the vacant real estate regulations will be issued within a year from the date of the official publication of the system, while the executive regulation of white lands entered into force according to the announced schedules. This means that the scope of application will gradually expand to additional cases associated with vacant real estate later.

What does this regulation mean for owners and developers

The regulation gives clear signals: holding raw land within the built-up area without development will be of increasing cost if market gaps and activation criteria persist. So the owner has three main paths: Development, Partnership / Marketing for development, or disposition (sale/retail) in such a way as to reduce the burden and increase the feasibility.

In all these scenarios, the role of the engineering consulting office as a strategic partner to transform fees from a burden into an investment incentive appears.

Services that can be provided by the engineering consulting Office (central to this regulation)

1) specialized technical and economic feasibility studies

Analysis of the development option versus continuing to pay the fee: comparison of the expected fee (2.5% – 10%) with the development return over different time frames.

Modeling scenarios (residential/commercial/mixed) and calculating net present value, breakeven point, and cost sensitivity.

Evaluate the best timing to start in line with the city's development priorities.

2) smart urban planning and land exploitation

Harmonization of the schemes with the requirements of use, density and local building regulations.

Preparation of detailed plans (Concept + Master Plan) that take into account the maximization of exploitation (efficiency of surfaces/positions/movement).

Studies of structural interconnection (roads, water, electricity, drainage) and gradual development to reduce capital costs.

3) architectural, structural, mechanical/electrical engineering (A / E / M)

Effective architectural design for residential / commercial / mixed with feasible solutions in short durations (to minimize exposure to fees).

Structural and economical solutions in materials and methods of execution.

Design MEP and energy efficiency systems according to sustainability criteria.

4) management of permits and accreditations (Permitting)

Manage the licensing process across municipalities/platforms and reduce the accreditation cycle.

Prepare documents and drawings to meet the specifications, and respond to the comments of the authorities.

Follow up the requirements related to the declared urban area of each city.

5) project management and supervision (PMC/CM)

Develop a phased development plan (Phasing) commensurate with cash flows and maturity dates.

Realistic execution schedules and performance indicators (time/cost/quality).

Strict site supervision to avoid wasting time leading to higher fees or fines.

6) Value assessment and valuation in cooperation with licensed appraisers

Coordinate with licensed appraisers to calculate the value on which the fees are based.

Prepare valuable reports that support development/disposition decisions and are used when needed in official communications.

7) land divisions (Subdivision) and planning solutions

Prepare segmentation schemes that increase marketability and reduce the burden of fees through the distribution of uses.

Study the costs of common infrastructure and the mechanisms of their bearing between the pieces.

8) systemic compliance and risk management

Explain the regulation to the client, the scope of application, activation criteria in his city.

Checklists comply periodically, and updates are sent to the client with any organizational change.

Support objection/grievance mechanisms whenever available.

9) sustainability and energy efficiency

Low-cost operational designs (insulation, high-efficiency mechanical systems, solar energy).

Certification of green buildings (if desired) and maximization of marketing feasibility points.

10) partnerships and development structuring

Preparing development partnership offers with developers/investors.

Profit sharing models,contracting contracts, and legal/technical risk control.

Suggested practical steps for a white landowner

Quick diagnosis: make sure that your land is within the scope of application of the drawing and that its area is ≥ 5,000 m2.

Read your city's indicators: is there a supply/demand gap or is price inflation doing the drawing Watch the ministry's annual updates. Order a feasibility study: compare the development of the land or the bearing of fees for several years.

Choose a development scenario (residential/commercial/mixed) with a phased schedule that minimizes exposure to fees.

Start with permits and implementation quickly with an engineering team with local expertise in accreditations.

The plan is updated annually according to ministry reviews and market changes.

Common quick questions

Can the rate really go up to 10%? (laughs)

Yes, after the amendments, the limit has become up to 10% according to the development criteria and priorities. The base is 2.5% and the percentage may be increased within the ranges determined by the competent authority.

When will the list of “vacant real estate”be issued

It was officially indicated that the regulations for vacant Real Estate are issued within a year from the publication of the order in the Official Gazette.

What is the official reference

The official gazette of Umm Al-Qura, the website of the white Land fees program, and the municipal portal for texts and files.

Quick organizational summary

Item

Conclusion

Space requirement

≥ 5,000 m2 (for land or total land for one owner within the range).

The basis of the drawing

2.5% of the land value (subject to increase).

The maximum

Up to 10% according to development priorities and standards.

Activation criteria

Supply/demand gap, price inflation, lack of supply, monopoly, white ratio.

Evaluation

A technical committee and authorized appraisers to estimate the value and duration.

Annual update

The ministry reviewed the market indicators in each city.

How to translate the regulation into winning decisions

Moving early reduces the risk of paying higher rates in the future and puts you on a development path that creates real value.

A decision based on Data (Value, Returns, execution durations) is better than a useless wait.

The engineering consulting office is the facilitator between the systemic requirements, economic feasibility, design and implementation.

Conclusion

The executive regulation of the white Land fees sets a flexible and firm framework together: flexibility in linking the ratio to market realities and development priorities, firmness towards undeveloped land within cities. Choosing an expert engineering consulting office means a clear roadmap from compliance to profitable development: feasibility → planning → design → permits → implementation. With annual updates of indicators, a quick response and a thoughtful decision are the difference between a “continuous fee” and a“productive asset” that generates a sustainable income.