Asas Makin Real Estate Development and Investment Company announced today that it has received three invoices related to vacant land fees, totaling SAR 1.65 million. In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company clarified that these invoices pertain to land located within the geographical area targeted for the application of the fees in Riyadh.
The company affirmed its commitment to applicable accounting standards by recording these amounts as part of its financial liabilities, noting that the financial impact of these charges is not material when compared to the size of the company's portfolio and total assets. These liabilities will be reflected in the current period's financial statements, demonstrating the company's commitment to financial transparency.
Reasons for objection and the legal status of the land
In detailing its legal position, Asas Makin clarified its intention to file a formal objection to these invoices within the stipulated timeframe. The company bases its objection on the fact that the lands in question do not fall under the category of "undeveloped land" subject to fees according to the system's implementing regulations. It explained that these lands are already included in the company's future development plans, and work is currently underway to complete the necessary development requirements and obtain the required permits in accordance with applicable regulations and instructions, thus removing them from the category of undeveloped land intended for hoarding.
Context of the White Land Tax Program and its Economic Objectives
This event comes within the framework of the ongoing efforts of the Ministry of Municipal and Rural Affairs and Housing in the Kingdom of Saudi Arabia to implement the White Land Tax program. This program, which is a cornerstone of real estate reform in the Kingdom, aims to increase the supply of developed land to achieve a balance between supply and demand, provide residential land at reasonable prices, and protect fair competition while combating monopolistic practices.
The system imposes annual fees on undeveloped land within city limits to incentivize owners to either develop or sell it, thereby contributing to urban development. The regulations allow owners the right to object if there are legal impediments to development or if the land is already under development, a path taken by the "Asas Makin" company.
Contradicting previous announcements and commitment to governance
It is worth noting that the company had previously announced, specifically on September 24, 2025, that its portfolio contained no undeveloped land subject to the regulations, confirming at the time that all its land was classified as developed or under-development investment properties. This new announcement clarifies the recent developments and the change in the classification of some lands from the program's perspective, which necessitated the filing of an objection.
The company concluded its statement by emphasizing its continued commitment to applying the highest standards of governance and transparency, and its commitment to immediately disclosing any material developments that may occur regarding the acceptance or rejection of the objection, in a way that serves the interests of shareholders and preserves their rights.
