Saudi Arabia’s net FDI up 26%: GASTAT

RIYADH: The much-anticipated Trump Tower Jeddah has entered the pre-construction phase, confirmed Eric Trump, son of the US president, marking a major step forward for one of Saudi Arabia’s most high-profile luxury developments.

Set to rise 47 floors along the Red Sea coast, the building is being developed by London-listed Dar Global in partnership with the Trump Organization.

The project will include high-end residences and is intended to enhance the luxury housing landscape in the Kingdom’s western port city. According to Trump, the development will involve an investment of “many, many, many hundreds of millions of dollars.”

“The building (Trump Tower) in Jeddah is absolutely amazing. It’s one of the most beautiful buildings anywhere in the world, and we just started,” Trump, who is also the executive vice president of the Trump Organization, said in a video interview with Al-Eqtisadiah.

He added: “We’ve got all the plans and we just started the pre-construction works. This is going to be by far the nicest building in Jeddah and really a building that we’re incredibly proud of as a family.”

The Jeddah tower is the second major project between Dar Global and the Trump Organization, following the Trump International Oman at the $4 billion AIDA development.

Speaking during the launch of Trump Tower Jeddah in December, Dar Global CEO Ziad El-Chaar said: “Jeddah is undergoing a remarkable evolution, moving from traditional housing to dynamic high-rises, mixed-use developments that reflect modern living preferences.”

Trump Tower Jeddah marks the latest regional expansion for the real estate brand, coming on the heels of the recently launched Trump International Hotel and Tower Dubai — the first branded residential tower on the city’s iconic Sheikh Zayed Road.

The Dubai property is part of Dar Global’s growing premium portfolio and underscores the Trump Organization’s deepening ties in the Gulf.

Speaking about the Dubai project during his regional tour, Trump said: “The opportunities are endless. You can build the greatest buildings anywhere in the world, and that’s what we’re going to do.”

He added: “Trump International Hotel and Tower Dubai (is) the best building anywhere you buy, the best hotel. We’re going to redefine the standard, and I love doing it here.”

JEDDAH: Saudi Arabia has raised the annual fee on undeveloped land from 2.5 percent to up to 10 percent of property value, as part of Cabinet-approved reforms to address market imbalances. 

The amendments to the White Land Tax Law expand its scope for the first time to include levies on long-vacant buildings and revised land-size thresholds for taxation. 

The changes, ratified by the Cabinet on April 29, mark the most significant overhaul of the law since its inception in 2016. 

They come as part of a broader effort to accelerate development, counter speculation, and address supply-demand imbalances in the Kingdom’s real estate sector, which has seen mounting pressure in key cities such as Riyadh. 

The reforms support broader efforts to curb speculation, boost land utilization, and enhance access to affordable housing in line with Vision 2030.

In a post on his official X account, Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail said: “The amendments included stimulating the use of vacant properties, and amending the targeted areas and the amount of the fee on undeveloped and developed vacant lands within the urban area, by up to 10 percent.”

The revised framework sets a minimum land area of 5,000 sq. meters for the application of the fee, covering both individual plots and contiguous holdings in designated urban areas. 

It also broadens the tax base to include vacant buildings — defined as ready-to-use buildings prepared for occupancy within the urban area that have not been used for a long period without acceptable justification, and whose lack of use or exploitation affects the availability of sufficient supply in the real estate market.

These vacant properties will now face an annual levy of up to 5 percent of their estimated rental value, as specified in forthcoming regulations.

The updated law introduces clearer criteria, phased implementation, and enhanced enforcement mechanisms, including grievance channels and unified property databases.

The Kingdom originally launched the White Land Tax Law to discourage land hoarding and promote more equitable development.

According to the Saudi Press Agency, Al-Hogail stated that the revised system is expected to enhance the efficient use of idle land and buildings, align supply with demand, and promote the productive use of real estate assets. It also seeks to encourage the development of undeveloped land and increase the overall availability of real estate, particularly residential properties.

Speaking to Al-Ekhbariya, Saif Al-Suwailem, spokesperson for the Ministry of Housing, said that the executive regulations for vacant property fees will outline the implementation mechanism.

The official added: “The amendments to the White Land Tax will enhance land use efficiency and stimulate the development of residential projects,” Al-Ekhbariya reported.

Moreover, he emphasized that amending the fees will have a clear and effective impact on enhancing supply and achieving real estate balance, noting that the system was completed in half the time.

The changes come as Saudi authorities intensify efforts to stabilize the housing market in cities like Riyadh, where surging land values and rental rates have strained affordability. 

A study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs recently prompted a series of measures, including lifting development restrictions in large swaths of northern Riyadh.

The government will issue executive regulations for the amended White Land Tax Law within 90 days of its publication in the official gazette. Regulations governing vacant property taxation are expected within one year, according to SPA.