Saudi White Land Tax Law amendments to Boost Development, Supply of Real Estate

The new amendments to the executive regulations of the White Land Tax (WLT) program stipulate three implementation phases, Asharq Al-Awsat
The new amendments to the executive regulations of the White Land Tax (WLT) program stipulate three implementation phases, Asharq Al-Awsat
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Saudi White Land Tax Law amendments to Boost Development, Supply of Real Estate

The new amendments to the executive regulations of the White Land Tax (WLT) program stipulate three implementation phases, Asharq Al-Awsat
The new amendments to the executive regulations of the White Land Tax (WLT) program stipulate three implementation phases, Asharq Al-Awsat

Saudi Arabia’s Council of Ministers approved on Tuesday a set of amendments to the executive regulations of the White Land Tax (WLT) program, in a move that will boost the Kingdom’s development march and supply of real estate.

According to the Ministry of Municipal and Rural Affairs and Housing, the WLT program is being implemented in its first phase in Riyadh, Jeddah, Dammam and Makkah.

The total payment orders in the four cities reached about 5,500 for a total area exceeding 411 million square meters.

The new amendments to the executive regulations stipulate three implementation phases.

The first phase includes undeveloped plots of land with an area of 10,000 square meters or more, which fall within the scope specified by the ministry.

The second phase includes developed plots of land with an area of 10,000 square meters or more for a single proprietor of 10,000 of square meters or more in one housing plan within the scope specified by the ministry.

The third phase covers developed land with an area of 5,000 square meters or more, and the total area of developed plots of land for a single owner is 10,000 square meters or more in one city within the scope specified by the ministry.

According to economic expert Ahmed al-Shahri, the WLT program and the new amendments help free residential plots from controlling monopolies, especially at a time when increasing housing costs continue to negatively affect property ownership rates among young families.

In 2016, Saudi Arabia decided to capitalize on undeveloped land in urban areas, which makes up 30 percent of those areas. A 2.5% tax, based on land value, was issued to landowners who had purchased plots but left them undeveloped.

The WLT program aims to increase the volume of plots available to develop urban areas, offer residential land at reasonable prices, and provide fair competition



Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
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Gold Extends Gains as Trump Tariffs Fuel Safe Haven Flows

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo
Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich November 20, 2014. REUTERS/Arnd Wiegmann/File Photo

Gold prices rose for a second straight session on Tuesday, but traded below the recent all-time highs, as uncertainty around US President Donald Trump's tariff plans continued to fuel economic growth concerns and safe haven flows into bullion.

Spot gold gained 0.6% at $2,913.79 an ounce as of 0714 GMT. It hit a record high of $2,942.70 last week.

US gold futures added 0.9% to $2,925.50.

"Trump's disruptive modus operandi, aggressive rhetoric and tariffs - whether actual or threatened - could unravel global trade and intricate supply chains," said Nikos Tzabouras, senior financial writer at trading platform Tradu, Reuters reported.

"With uncertainty surrounding the global economy and the broader geopolitical landscape in the Trump 2.0 era, gold is set to remain a natural beneficiary of risk-off flows and central bank buying."

Since taking office last month, Trump has swiftly redrawn the global trade battlefield with a series of tariffs, while plans are already in motion for sweeping reciprocal tariffs, aimed squarely at any nation that taxes US products.

"Gold continues to benefit from the uncertainty surrounding the US. government's tariff policy. Central bank buying should also continue to provide support, even if there is no new data on this," Commerzbank analysts said in a note.

The market's focus has now shifted to the US Federal Reserve's January meeting minutes due on Wednesday for clues into the central bank's interest rate trajectory.

"Price gains are also supported by growing expectations that the Fed will cut rates in 2025 - a sentiment that gained further traction among traders after last week's disappointing US retail sales figures," Ricardo Evangelista, senior analyst at brokerage firm ActivTrades, said.

Bullion benefits from geopolitical and economic uncertainties, as well as rising price pressures, but higher interest rates diminish the asset's allure.

Spot silver fell 0.9% to $32.50 an ounce. Platinum jumped 0.9% to $985.20 and palladium climbed 1.6% to $978.00.