Saudi land tax may spur construction boom
New tax on unbuilt urban land may free up property for development and spur economic growth in KSA
The Saudi government has approved a proposal to levy fees against vacant land in urban areas of cities and provinces throughout the Kingdom.
The move was suggested by the newly formed Council for Economic and Development Affairs and approved by the Cabinet at its regular meeting yesterday.
It is the first major economic policy initiative announced by the Saudi government since King Salman took the throne in January, and may spur a push to develop more land into affordable homes which are desperately needed by the country.
The announcement was released on the state-run Saudi Press Agency, but there were no details mentioned of the amount of tax that should be levied or when the tax should be introduced.
King Salman has said that housing for citizens was one of three key priorities for the government. He relieved former housing minister Shuwaish Al Duwaih of his position earlier this month and transferred his responsibilities to a minister of state.