Saudi Arabia imposes fees on unbuilt land
The decision could help to end a shortage of affordable homes and spur economic growth
Saudi Arabia imposed on Monday fees on undeveloped land in urban areas following a recommendation by the Council of Economic Affairs, Al Arabiya News Channel reported.
The decision taken in a cabinet meeting could help to end a shortage of affordable homes and spur economic growth.
"The Cabinet approved that the Council of Economic Affairs and Development shall prepare organizational arrangements and mechanisms for imposing fees on unbuilt lands within the urban boundaries of cities and provinces," the Saudi Press Agency (SPA) reported.
Some urban land in the kingdom is owned by wealthy individuals or companies who prefer holding it as a store of value, or trading it for speculative profits, to the process of developing it. The fee could change that and spur home building activity.