Saudi Real Estate Co. Reveals SAR 61.6 Million in White Land Fees, Expects Limited Financial Impact

Riyadh | EcoPulse24

Saudi Real Estate Co. (Al Akaria) announced updates regarding its properties subject to the Saudi white land tax, stating that the total value of invoices issued to date has reached SAR 61.64 million across specific segments of its Riyadh land portfolio.

According to the disclosure, the total exposure covers 487,840 square meters, representing 4.65% of the company's total Riyadh land holdings, indicating a relatively limited scope compared to its overall real estate assets.

Invoice Distribution by Tier

The company clarified that the majority of the invoices are within Tier 1 (10%), amounting to SAR 56.81 million. These include land currently under development as well as plots in the final phases of contractor selection, with related invoices totaling SAR 32.68 million.

Al Akaria stated it will complete the regulatory processes to address these invoices in line with the relevant laws, suggesting the possibility of reassessing the regulatory status of lands under development.

For Tier 4 (2.5%), invoices totaled SAR 4.84 million, relating to land within the “Akaria Park” project, which is classified as earmarked for divestment under its asset management strategy.

Financial Impact and Outlook

The company emphasized that it does not currently anticipate any material impact from these invoices beyond what has already been disclosed, based on information available as of the announcement date. It also confirmed no additional costs beyond those already announced.

Share Performance

The disclosure coincided with Al Akaria’s shares trading at SAR 14.35 on the main market, down 0.42%, with a trading value of SAR 5.23 million and over 365,000 shares traded across 681 transactions. Year-to-date, the stock is up 11.33%, though it remains below levels seen a year ago.

Analytical Insight

The disclosure reflects a high level of transparency by Al Akaria regarding the sensitive issue of white land fees in Saudi real estate development. Although the total invoice value appears large, the limited percentage of land subject to the tax and the classification of much of it as under development or slated for divestment reduce long-term operational and financial risks.

The concentration of fees in Tier 1 suggests that development pace will be crucial in mitigating future fee impacts, especially as regulations prioritize actively developed land. Thus, the announcement is seen as a regulatory clarification rather than a material pressure on current profitability.