Hamad Bin Saeedan Real Estate Company announced today, Tuesday, in an official statement published on the Saudi Stock Exchange website, that 32 invoices related to white land fees have been issued within its real estate portfolio, with the total value of these invoices amounting to approximately two million Saudi riyals.
In its disclosure, the company clarified that it intends to take all necessary regulatory and legal measures to address these invoices, including submitting requests for extensions to the payment deadline or completing development procedures, in accordance with applicable regulations. In a message to reassure shareholders, the company indicated that it does not anticipate any material negative financial impact on its position as a result of these claims, citing the large size of its real estate portfolio and the strength and diversification of its assets compared to the reported fees.
Context and objectives of the White Land Fees Program
This announcement comes as real estate companies comply with the regulations and legislation issued by the Ministry of Municipal and Rural Affairs and Housing in the Kingdom of Saudi Arabia, specifically the White Land Tax program. This program, which is a cornerstone of regulating the real estate sector within the Kingdom's Vision 2030, aims to incentivize landowners within urban areas to develop their land instead of leaving it undeveloped.
By imposing these fees (which usually amount to 2.5% of the land value), the state seeks to increase the real estate supply of developed land and housing units, which contributes to achieving a balance between supply and demand, reducing monopolistic practices, and thus providing housing products at reasonable prices for citizens.
Economic impact and transparency in the financial market
The disclosure by Hamad Bin Saeedan Company reflects the commitment of companies listed on the Saudi Stock Exchange to transparency and governance standards, as disclosing government financial obligations is a fundamental right of shareholders to know. Large real estate companies typically manage these fees by accelerating the pace of real estate development or by taking advantage of the grace periods offered by the program to serious developers.
The company concluded its statement by affirming that it will disclose any material developments that may occur in this regard in due course, and will reflect the financial impact in its financial statements for the relevant period in accordance with the accounting standards adopted in the Kingdom of Saudi Arabia.
