Enmar Real Estate Development and Investment Company announced in an official statement on the Saudi Stock Exchange (Tadawul) website that it received, on January 1, 2026, a set of invoices related to vacant land fees, totaling approximately SAR 21.18 million. These invoices pertain to company-owned land located within the geographical areas targeted in the third phase of the vacant land fees program in Riyadh (2026 cycle).
The company clarified in its statement that these lands are already included in its investment portfolio and are located within the urban area subject to the applicable fees. However, Enmar emphasized a crucial point: these lands are not undeveloped in the traditional sense, but rather lands where development work has already commenced, and all necessary development and engineering requirements are currently being fulfilled in accordance with the regulations issued by the relevant authorities.
The company's financial and regulatory procedures
In compliance with the accounting standards adopted in the Kingdom of Saudi Arabia, the company confirmed that it will recognize the amounts included in these invoices under the financial liabilities section of its financial statements, which will be reflected in the financial results for the relevant period. Simultaneously, the company stated that it is currently conducting a thorough review of the received invoices and affirmed its conviction that these lands do not fall under the definition of “undeveloped land” subject to fees, given that they are under active development. Accordingly, the company intends to submit a formal request for an extension to complete the development work, based on the provisions stipulated in the Implementing Regulations for Fees, while pursuing all necessary legal procedures to protect the rights of its shareholders.
Context and objectives of the White Land Fees Program
This announcement 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, which is a cornerstone of regulating the real estate sector. The program primarily aims to combat land speculation within urban areas and incentivize landowners to develop their land instead of leaving it undeveloped for extended periods. The program has progressed through several phases. The first phase focused on large areas of undeveloped land, while subsequent phases, culminating in the third phase, have expanded to include partially developed or smaller plots, thereby increasing the supply of developed land and residential units.
Economic and developmental impact
The implementation of these fees carries significant economic and developmental dimensions that align with the objectives of the Kingdom's Vision 2030, particularly concerning the housing program and increasing homeownership rates among citizens. Through the financial pressure exerted by these fees, companies and individual owners are incentivized to accelerate development and construction, contributing to a reduction in land and property price inflation and providing affordable housing in major cities such as Riyadh, Jeddah, and Dammam. For listed companies like Enmar, managing these fees requires flexible strategies that balance financial commitment with the timely completion of existing projects to avoid accumulating operational burdens.
