White land registration in Makkah to close today

Saudi Arabia’s housing ministry will close today the registration period granted to owners of white land in Makkah.

Mohammed AlMudaiheem, supervisor for the white land tax scheme at the housing ministry said last month, “around five million square meters of land have been registered in Makkah, and that number is expected to double by the end of registration period”.

The first phase of white land fees includes undeveloped lands which are allocated for residential or commercial use in Makkah and spread over a minimum area of 10,000 square meters.

In November 2015, the Kingdom’s cabinet approved a proposal to impose a 2.5 percent tax on all undeveloped residential and commercial plots in urban areas, in a move to solve the housing shortage problem.

Under the system, land owners are required to pay a fee of 2.5 percent of the white land's value or develop it within 12 months.