Dar Al Arkan, one of the largest listed real estate developers in Saudi Arabia by asset size and market value, said that 2.83 million square metres (sqm) of its land falls under White Land Tax, which is based on its initial assessment of lands within the designated geographical zones.

Nearly 2.65 million sqm of land falls in north Riyadh and is subject to a 5 percent tax, the developer said in a statement to the Saudi stock exchange. Another 181,000 sqm of land falls in north Riyadh within the 10 percent slab.

The initial assessment indicates that all lands, excluding north Riyadh, will maintain the status quo on their applicability, as in earlier years.

Dar Al Arkan will conduct a detailed analysis of each of the land parcels to assess and evaluate the applicability and commercial impact, the statement said.

Earlier this month, Saudi Real Estate Company (Al Akaria), another Saudi-listed developer, said 487,840 sqm of its Riyadh land bank, constituting 4.65 percent of the total 10.48 million sqm land bank, falls within the White Land Tax.

First Avenue for Real Estate Development Company recently launched a new initiative for landowners in Riyadh to transform their idle lands into income-generating assets.

Saudi Ministry of Municipalities and Housing has stated the White Land and Vacant Property Fees Law is aimed at increasing real estate supply, improving the efficiency of underutilised assets and promoting fair competition.

(Editing by Anoop Menon) (anoop.menon@lseg.com) 

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