Skip to content The annual fee on undeveloped urban land has moved from a flat 2.5% to zone-based rates of up to 10% of assessed value. Developing the land is how the fee stops. Advisory Corp prepares bankable feasibility studies that show what to build, what it will return, and how to finance it, so you can move from paying the fee to building value.
2.5% Previous flat annual rateUp to 10% Annual rate in maximum development priority zones, charged every year the land stays undeveloped
The amended law (Royal Decree M/244, published May 2025) and its implementing regulations (published August 2025) replaced the single rate with four zone-based bands and widened the scope to vacant buildings.
| Item | Before | Now |
|---|---|---|
| Annual rate | Flat 2.5% of land value | 2.5%, 5%, 7.5% or 10% of assessed value, set by the development priority zone |
| Size threshold | Phased by land size and use | 5,000 m² or more, counted across all undeveloped land one owner holds in the city |
| Land covered | Residential and commercial white land | Any undeveloped land suitable for development inside the urban boundary |
| Vacant buildings | Not covered | Buildings unused for 6 months or more in a year can be charged, capped at 5% of property value |
| Where it applies | Selected cities | Riyadh invoiced from 1 January 2026. Jeddah, Makkah and the Dammam metro area entered registration in June 2026 |
| Late registration | Fines | Penalty of up to 100% of the fee value, on top of the fee itself |
Enter your land details to estimate the annual White Land fee and what it adds up to if the plot stays undeveloped.
Include all undeveloped plots you own in the same city. The 5,000 m² threshold is tested on the total.
Use your best estimate. The official value is set by a committee of accredited valuers.
At the 10% band, five years of fees equal half the land’s value.
Indicative only. Assumes a constant assessed value. Your actual zone, value and liability are set by the Ministry of Municipal and Rural Affairs and Housing (MOMAH).
Get a feasibility study for this landAt the top band, five years of fees equal half the land’s value. Holding land as a passive store of value no longer works inside priority zones.
The fee repeats every year and is charged on assessed value, not on what you paid. Over time it can consume a large share of the asset.
Many owners face the same fee at the same time. Selling into that market can mean accepting a discount to fair value.
Completed development ends the fee. A bankable feasibility study defines the right project and unlocks bank finance, joint ventures or fund structures.
Our team of former Big 4 consultants is the backbone of Advisory-Corp’s success. Each member brings exceptional expertise in Strategy, Feasibility Studies, Valuation, and Due Diligence, ensuring that we provide our clients with the highest level of insight and solutions.
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Director Finanical Advisory
Managing Director Advisory
Director Public Consulting
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A bankable feasibility study is one that a lender, fund manager or JV partner can rely on to make a funding decision. It answers what should be built on the land, whether the market will absorb it, what it costs, what it returns, and how the project will be financed and repaid.
Advisory Corp builds every study around an integrated financial model and evidence from the Saudi market, so it holds up to credit committee and investor review.
Tests residential, commercial, hospitality, mixed-use and other options against zoning, location and demand to find the use that maximises land value. HBU studies
Supply pipeline, absorption, pricing, rental rates and competing projects in your district and city.
Unit mix, built-up area, phasing plan and a construction cost estimate aligned with the target market.
Revenue, costs, cash flows, IRR, NPV, payback and sensitivity scenarios in a model lenders can audit. Financial modeling
Bank debt, off-plan sales, land-in-kind JV with a developer, or a real estate fund, with the returns of each compared side by side. Development advisory
Key risks, mitigants and a presentation-ready report for banks, investors and partners.
A typical engagement follows six steps. Timelines depend on land size and project complexity.
We review title, zoning, location and your exposure under the White Land fee zones.
We compare development options and shortlist the ones the market and regulations support.
We test demand, pricing and absorption for the shortlisted concept.
We build the full model with returns, cash flow and sensitivities.
We set out how the project is funded: debt, equity, JV or fund.
You receive a lender and investor ready study, and we support you in meetings with financiers.
Headquartered in Faisaliah Tower, Riyadh, Advisory Corp has advised on real estate, feasibility and valuation work across Saudi Arabia and the GCC since 2010, and was recognised with Silver in Real Estate Development by Consultancy Middle East.
Our real estate team also supports independent land and property valuation, which can help you check the assessed value used for your fee, and real estate feasibility studies for every asset class.
Under the amended implementing regulations, the annual fee is 2.5%, 5%, 7.5% or 10% of the land’s assessed value, depending on the development priority zone the land sits in. Land outside the priority map is charged 0%, but its area still counts toward the owner’s 5,000 m² threshold.
The registered owner of undeveloped land inside the urban boundary, where the owner’s total undeveloped land in that city is 5,000 m² or more and the land falls in a designated priority zone. It applies to individuals and companies, Saudi and non-Saudi.
Riyadh was first, with invoices issued from 1 January 2026. Registration for Jeddah, Makkah and the Dammam metropolitan area opened in June 2026. The Ministry can add cities and adjust zones over time, so owners elsewhere should monitor announcements.
The fee stops once the land is developed. Other exemptions are narrow, for example where the owner is legally prevented from developing or disposing of the land. The Ministry can also grant additional development time based on the nature and size of the land. For most owners, a viable development plan is the practical route.
A feasibility study does not exempt land from the fee on its own. It gives you a clear, financeable development plan: the right use, the expected returns and a funding structure banks and investors will review. That is what lets you start development quickly and bring the annual fee to an end.
It is a feasibility study prepared to the standard lenders and investors need to approve funding. It combines market evidence, a development concept, cost estimates, a detailed financial model, sensitivity analysis and a proposed financing structure.
Common routes include a joint venture where you contribute land in kind and a developer funds construction, off-plan sales, bank project finance, or placing the land into a real estate fund. A feasibility study shows which structure gives you the best return for your risk.
Yes. Objections are filed in writing with the competent committee within 60 days of notification, and committee decisions can be appealed to the Administrative Court. An independent valuation can support your case.
It depends on land size, use and complexity. Contact us with your land details and we will give you a scope, timeline and fee proposal.
Share your land location, area and zoning. Our real estate team will review your White Land fee exposure and tell you which development options are worth studying, at no cost.
18th Floor, Faisaliah Tower, King Fahad Road, Riyadh | +966 567 583 653 | info@advisory-corp.com
This page is general information based on the White Land and Vacant Property Fees Law (Royal Decree M/244) and its implementing regulations published in August 2025. It is not legal or tax advice. Zones, rates, thresholds and deadlines are set and updated by the Ministry of Municipal and Rural Affairs and Housing (MOMAH). Calculator results are estimates. Last reviewed November 2026.
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