16 Hrs
الاقتصادية
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الاقتصادية

2026-11-11T13:46:33.350Z

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الاقتصادية

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Fee-Free Land for Funds

Fee-Free Land for Funds

New regulations in Saudi Arabia allow undeveloped land to be transferred to real estate funds in exchange for an in-kind stake in their capital, without requiring land fees to be paid upfront. However, they do not exempt owners from the fees and obligations associated with the land. This gives landowners a way to participate in development and benefit from the land’s future value rather than sell it outright, while helping funds and developers assemble land, attract financing, and increase the supply of real estate. The mechanism’s success depends on fair land valuations, transparent funds, and their ability to deliver projects that meet market needs and buyers’ purchasing power. Participation does not guarantee higher returns than a direct sale.

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