RIYADH: Final details of the 2.5 percent annual tax on unused land in Saudi Arabia would be released in two weeks, according to Housing Minister Majid Al-Hogail.
“The land fees are almost completed now, all of the elements were studied by all of the relevant agencies,” Al-Hogail said at a press conference in Jeddah on Tuesday, where officials were outlining details of the National Transformation Program 2020.
“Now it is ready, I expect during the coming two weeks it will be announced in a final way.”
One of the first decisions by Custodian of the Two Holy Mosques King Salman as ruler was to impose the 2.5 percent annual tax on the value of urban land that is not being developed by its owners. The regulations will outline which plots will be subject to the tax and the time frame for implementation.
Al-Hogail said the Kingdom will offer foreign and local property developers partnership deals in a vast housing construction program that aims to build 1.5 million homes over the next seven or eight years. “We are preparing five or six types of partnership between the ministry and the developer,” Al-Hogail told reporters.
“The developer would be an investor, bearing risk and designing products in line with market demand,” he said. The ministry would support projects by providing information and help to arrange financing. “We want to catalyze the private sector to be a partner with it — we want them to play the prime role,” Al-Hogail said.
Major Saudi property developer Dar Al Arkan said this week that it was in talks with the ministry on a partnership to build housing, fuelling a leap of more than 20 percent in its share price over two days.
But Hogail said Saudi Arabia was also keen to persuade foreign developers to participate because they could provide expertise and more diverse projects.
Al-Huqail said the most important goal of the ministry is to assist 52 percent of citizens to own their homes.
Meanwhile, the ministers of economy and planning, health, and education have all outlined their plans under the NTP at the press conference.
Minister of Economy and Planning Engineer Adel Fakeih said it would reduce the proportion of troubled projects from 30 to 10 percent. “The ministry introduced 20 initiatives with the NTP with a budget of more than SR3 billion,” he added.
Minister of Health Tawfiq Al-Rabiah said that if the programs of the NTP are achieved the Kingdom will have a robust and strong economy, which will enhance the welfare of citizens.
Minister of Education Ahmed Al-Isa said his strategic goals include 36 initiatives that will ensure a qualitative leap in the education system, both public and private, over the coming five years with a budget estimated at more than SR24 billion.
“The land fees are almost completed now, all of the elements were studied by all of the relevant agencies,” Al-Hogail said at a press conference in Jeddah on Tuesday, where officials were outlining details of the National Transformation Program 2020.
“Now it is ready, I expect during the coming two weeks it will be announced in a final way.”
One of the first decisions by Custodian of the Two Holy Mosques King Salman as ruler was to impose the 2.5 percent annual tax on the value of urban land that is not being developed by its owners. The regulations will outline which plots will be subject to the tax and the time frame for implementation.
Al-Hogail said the Kingdom will offer foreign and local property developers partnership deals in a vast housing construction program that aims to build 1.5 million homes over the next seven or eight years. “We are preparing five or six types of partnership between the ministry and the developer,” Al-Hogail told reporters.
“The developer would be an investor, bearing risk and designing products in line with market demand,” he said. The ministry would support projects by providing information and help to arrange financing. “We want to catalyze the private sector to be a partner with it — we want them to play the prime role,” Al-Hogail said.
Major Saudi property developer Dar Al Arkan said this week that it was in talks with the ministry on a partnership to build housing, fuelling a leap of more than 20 percent in its share price over two days.
But Hogail said Saudi Arabia was also keen to persuade foreign developers to participate because they could provide expertise and more diverse projects.
Al-Huqail said the most important goal of the ministry is to assist 52 percent of citizens to own their homes.
Meanwhile, the ministers of economy and planning, health, and education have all outlined their plans under the NTP at the press conference.
Minister of Economy and Planning Engineer Adel Fakeih said it would reduce the proportion of troubled projects from 30 to 10 percent. “The ministry introduced 20 initiatives with the NTP with a budget of more than SR3 billion,” he added.
Minister of Health Tawfiq Al-Rabiah said that if the programs of the NTP are achieved the Kingdom will have a robust and strong economy, which will enhance the welfare of citizens.
Minister of Education Ahmed Al-Isa said his strategic goals include 36 initiatives that will ensure a qualitative leap in the education system, both public and private, over the coming five years with a budget estimated at more than SR24 billion.
