By Sultan Al-Radad

Riyadh-Mubasher: The Saudi cabinet’s decision to impose taxes on undeveloped land plots in urban areas – known as ‘white land’ – will have a positive impact on the overall economy and will help resolve the kingdom’s housing crisis, said economic expert Essam Al-Zamil.

In an interview with MubasherU radio programme, the expert said that the kingdom’s white land is valued at more than SAR 3 trillion, enough to last Saudi citizens the next 20 years.

Annually-collected fees on the land can exceed SAR 75 billion, he said.

Al-Zamil said that the undeveloped land plots have increased in the last 30 years and represent a monopoly of land areas, as well as a way to preserve personal wealth.

The cabinet’s decision will force many traders to sell their unused land plots, he said.

The kingdom’s economy does not greatly benefit from land trading, while the development of land plots through building infrastructure or housing units will be greatly beneficial, according to the expert.

Translated by Sayed Abdel Rahman