Asas Makeen receives SAR 1.65M in idle land tax invoices, plans to appeal

Asas Makeen Development and Investment Co. announced receiving three idle land tax invoices totaling SAR 1.65 million today, Jan. 1, pertaining to land plots located within the designated geographic zones of the White Land Fees System.

These amounts have been recorded as financial liabilities in accordance with the applicable accounting standards. Given the size of these fees relative to the company’s portfolio and assets, Asas Makeen does not expect a material financial impact on its overall financial position. These liabilities will appear in the financial statements for the relevant period, it said in a Tadawul filing.

According to the statement, the lands in question include plots in Riyadh located within the announced tax boundaries. These lands are part of the company’s future development pipeline, and work is ongoing to complete the necessary regulatory development requirements.

Since these lands are currently "under development," the company believes they do not fall under the legal definition of "White Land" as stipulated in the regulations. Consequently, the company intends to file a formal appeal against these invoices, exercising its legal right to contest the fees. The company will follow all required legal procedures in this regard, the statement added.

The company will disclose any other material developments should additional information be received or any updates arise in relation to these invoices or the objections submitted.

According to data available with Argaam, Asas Makeen stated in September 2025 that all its land holdings are classified as developed and under-development investment properties, asserting that it held no white lands subject to the tax.

The Ministry of Municipalities and Housing earlier announced the geographical zones and tax brackets for idle lands in Riyadh, with annual tax rates determined by priority levels.

The annual fee is set at 10% of land value for tier 1 (highest priority); 7.5% for tier 2 (high priority); 5% for tier 3 (medium priority); and 2.5% for tier 4 (low priority). Meanwhile, tier 5 (non-priority) lands are subject to no annual tax, yet they remain counted within the owner’s total idle land tally within city limits.