Saudi Arabia Pushes Owners of White Land to Revive Properties, Boost Supply

 A housing project in Saudi Arabia (Asharq Al-Awsat)
A housing project in Saudi Arabia (Asharq Al-Awsat)
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Saudi Arabia Pushes Owners of White Land to Revive Properties, Boost Supply

 A housing project in Saudi Arabia (Asharq Al-Awsat)
A housing project in Saudi Arabia (Asharq Al-Awsat)

Real estate experts have described the Saudi Cabinet's decision to amend the White Land Tax system as a significant shift in balancing the supply and demand of the property market.
The move is expected to influence investor and landowner behavior, encouraging them to develop their properties and increase the availability of residential units, thereby revitalizing real estate development projects.
It will also support government efforts to accelerate urban development and offer diverse housing solutions.
The experts predict that the effects of this amendment will begin to be felt in the real estate market by the third quarter of 2025, with the most significant impact expected in the first half of 2026, as a higher number of properties fall under the tax.
On Tuesday, the Saudi Cabinet approved the amendment to the White Land Tax system, following directives from Crown Prince Mohammed bin Salman in March to take urgent action within 60 days to address the white land crisis.
The goal is to increase land supply, curb price inflation, balance supply and demand, and provide affordable residential land.
The recent amendments to Saudi Arabia's White Land Tax system introduce three phased implementation stages. The first phase targets undeveloped land measuring 10,000 square meters or more, located within a designated area set by the Ministry.
The second phase includes developed land of the same size, as well as developed land owned by a single entity within a single plot.
The third phase addresses developed land of at least 5,000 square meters, along with a total of 10,000 square meters or more of developed land owned by a single entity within a city, within the designated area.
The changes also allow for multiple phases to be applied within a single city. The Ministry will periodically review the situation in each city to determine whether to impose, suspend, or adjust the tax phases, allowing cities to bypass a stage and move to the next when necessary.
Currently, the White Land Tax is being implemented in Riyadh, Jeddah, Dammam, and Makkah as part of its first phase, with a total of approximately 5,500 payment orders covering over 411 million square meters of land. The program recently expanded to include several other cities, including Madinah, Asir, Jazan, Taif, and Tabuk.
Real Estate Development
Commenting on the decision, real estate consultant and expert Al-Aboudi Bin Abdullah told Asharq Al-Awsat that the move marks a significant shift in balancing supply and demand within the real estate market.
He highlighted that the system’s transition from fixed, low-impact fees (set at 2.5%) to a more dynamic, incentivizing tool could see fees rise up to 10%, depending on development progress and land use.
The inclusion of vacant properties under the tax and the consolidation of tax stages will help address the issue of land hoarding within cities, while also expanding the range of land that can be developed within urban boundaries.
Bin Abdullah believes the amendments will address several challenges, including land hoarding and urban stagnation caused by undeveloped plots held for years.
Additionally, the new system aims to reduce the unjustified rise in land prices, curb urban distortions due to vacant plots in fully developed areas, and accelerate both residential and commercial development projects by offering better incentives for land activation.
The changes are expected to increase the supply of land and developed projects in the coming periods, gradually lowering the prices of some white land, particularly in major cities.
This will encourage developers to focus on actual construction rather than holding land passively, while also supporting the government's efforts to speed up urban development and provide a broader range of housing options.
Bin Abdullah predicts that the initial effects of these changes will be felt by the third quarter of 2025, especially once the 90-day registration deadline for white land passes and a year has passed since vacant properties were first registered.
However, the most significant impact on land prices and availability will likely become evident in the first half of 2026, as more properties fall under the tax’s scope.
Investor Behavior Shift
Meanwhile, Khaled Almobid, CEO of Menassat Real Estate, told Asharq Al-Awsat that the current rise in property prices is detrimental to developers, end-users, and the economy, especially in the long term.
He views the amendments to the White Land Tax as a positive step for the real estate market, coming at a timely moment to tackle the sector's challenges.
Almobid emphasized that the primary objective of the changes is to shift investor behavior.
The amendments are designed to encourage investors to move away from using white land as a store of wealth and instead focus on developing these properties, thereby increasing the supply of residential units in the market.
He added that the changes will revitalize development projects, creating jobs across around 150 sectors that work in parallel with the real estate industry, benefiting the overall economic system in cities covered by the White Land Tax.
Almobid also pointed out that the inclusion of vacant properties under the tax is a crucial development.
This measure creates an incentive for property owners and developers to retain tenants, thus preventing vacancies and avoiding further tax burdens.
The move is expected to reduce the previously common practice of raising rents without considering tenants’ financial capabilities.



Egypt: Positive Results from Nargis-2 Natural Gas Well in Mediterranean

Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)
Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)
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Egypt: Positive Results from Nargis-2 Natural Gas Well in Mediterranean

Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)
Egyptian Petroleum Minister inspects the start of drilling operations at the Nargis gas field in the Mediterranean Sea (Ministry of Petroleum)

Egypt's Ministry of Petroleum and Mineral Resources and US energy major Chevron announced Saturday positive results from drilling the Nargis-2 natural gas well in the Mediterranean Sea, which began in May in cooperation with Chevron, its partners and the Egyptian Natural Gas Holding Company (EGAS).

In a statement, the ministry said the results support ongoing efforts to appraise the Nargis discovery, made in 2022, and accelerate its commercial development as one of Egypt's undeveloped gas discoveries.

The Nargis-2 appraisal well confirmed the extension of gas-bearing reservoirs previously encountered at Nargis-1 and identified an additional gas-bearing reservoir with favorable characteristics, supporting efforts to assess the area's gas resources and potential development opportunities.

The ministry said drilling operations were designed to evaluate the extent of the Nargis discovery and test deeper geological formations as part of efforts to expand exploration activities and maximize the Mediterranean's promising potential, including high-pressure, high-temperature formations.

The well reached a total depth of more than 5,000 meters, with appraisal results indicating gas-bearing reservoirs containing up to 35 meters of net pay.

According to the statement, these findings provide a positive indication supporting further technical studies to determine the discovery's overall potential and assess development opportunities.

The results align with the ministry's strategy to accelerate the development of undeveloped discoveries, encourage investment partners to intensify exploration activities and convert discovered resources into reserves that can be developed and brought into production, helping increase domestic natural gas output.

Egyptian Minister of Petroleum and Mineral Resources Karim Badawi witnessed the start of drilling operations at Nargis-2 in May aboard the Stena Forth drillship.

At the time, he emphasized the importance of accelerating the appraisal and development of undeveloped gas discoveries and strengthening cooperation with international energy companies to capitalize on Egypt's promising oil and gas resources.

Chevron operates the Nargis Offshore Concession in partnership with Italy's Eni, the UAE's Mubadala and Egypt's Tharwa Petroleum Company.


Global Equity Funds Attract Inflows for 5th Consecutive Week

NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP
NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP
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Global Equity Funds Attract Inflows for 5th Consecutive Week

NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP
NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP

Global equity funds attracted inflows for a fifth consecutive week in the week through October 21, as easing Treasury yields and strong early corporate earnings lifted investor sentiment.

Global equity funds drew net inflows of $28.16 billion during the week, compared with $19.88 billion in the previous week, LSEG Lipper data showed.

The benchmark 10-year US Treasury yield fell about 15 basis points last week and dropped below the psychologically significant 5% level this week, Reuters reported.

Fund investors were encouraged by better-than-expected corporate earnings so far this reporting season.

Of the nearly 18% of MSCI All Country World Index constituents that have ⁠reported earnings to date, ⁠about 73% have exceeded the average analyst estimate, according to LSEG data.

The MSCI World Index, however, fell 1.31% on Thursday after Meta reported strong results on Wednesday but unveiled plans to issue non-voting stock, reviving concerns about its growing capital commitments.

NEW YORK, NEW YORK - OCTOBER 21: Traders work on the floor of the New York Stock Exchange during morning trading on October 21, 2026 in New York City. Michael M. Santiago/Getty Images/AFP

By region, Asian equity funds attracted $11.53 billion, their largest weekly ⁠inflow since at least December 2022. Investors also added $9.14 billion to European equity funds and $5.07 billion to US equity funds.

Among sectoral funds, technology attracted $5.05 billion, reversing net sales of $4.77 billion in the previous week. Investors also bought $1.83 billion in healthcare sector funds but sold a notable $1.29 billion in consumer discretionary sector funds.

Global bond funds remained popular for a fifth consecutive week, attracting net inflows of $9.44 billion.

Swiss franc-denominated bond funds drew $6.8 billion, their largest weekly inflow since at least November 2024. ⁠Investors also added ⁠a significant $2.78 billion to short-term bond funds, while pulling $1.68 billion from high-yield bond funds and $550 million from government bond funds.

Money market funds attracted weekly net inflows of $15.86 billion, following net outflows of $47.51 billion the previous week.

Among commodities, gold and other precious metals funds attracted net inflows of $1.29 billion, marking their fifth week of net purchases in the past six weeks. Investors also added $41.5 million to energy funds.

Data covering 29,174 emerging market funds showed that investors bought $6.28 billion worth of equity funds — the largest weekly net purchase since August 5. However, they withdrew a marginal $48.72 million from bond funds.


UK Pledges More Funding to Guard Against AI Risks

FILE PHOTO: The words "AI Artificial Intelligence", a keyboard, and a robotics hand in this illustration taken October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: The words "AI Artificial Intelligence", a keyboard, and a robotics hand in this illustration taken October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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UK Pledges More Funding to Guard Against AI Risks

FILE PHOTO: The words "AI Artificial Intelligence", a keyboard, and a robotics hand in this illustration taken October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: The words "AI Artificial Intelligence", a keyboard, and a robotics hand in this illustration taken October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

The UK government on Saturday outlined plans to expand funding for artificial intelligence safety amid growing concerns over the cyber risks posed by the increasingly advanced technology.

"The economic opportunities from AI will only be realized if our critical infrastructure, public services and businesses are resilient to cyber, biological and emerging AI-enabled threats," the government said in a statement ahead of its annual budget update on Wednesday.

Concerns about AI safety have escalated in recent months after models developed by OpenAI and Anthropic were involved in security incidents during testing, piling pressure on governments to regulate the technology and protect against threats.

As part of a package of AI-related measures in the budget, the government will invest an additional £120 million ($161 million) in Britain's AI Security Institute, which tests the most powerful AI models before they are released.

According to AFP, it will also invest £100 million to establish a national AI Biosecurity Lab, which will use AI to detect and track biological threats.

"As AI becomes more powerful, Britain must have the capabilities to protect its people and shape its own future," said AI minister Kanishka Narayan.

"That means staying ahead of emerging threats, from cyberattacks to biological risks, while building more of the critical technology our security depends on," he added.

The plans include investment in AI tools to identify cyber vulnerabilities across critical infrastructure.

Governments and companies around the world shut down websites Thursday as they raced to protect themselves from hacks after AI models uncovered critical flaws in a widely used programming language called PHP.

Cybersecurity experts fear state-of-the-art AI technology could be used to hack banks, hospitals and government systems.

Last month it emerged that a rogue OpenAI model bypassed safeguards during training and hacked an Australian government health statistics website.