File - Cars drive past a housing compound in South of Riyadh December 17, 2012. REUTERS/Fahad Shadeed
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Saudi Arabian real estate shares tumbled Tuesday after the Cabinet approved a proposal to tax undeveloped land in urban areas – a policy that could shake up investment incentives in the kingdom and help to resolve a housing shortage.Some investors fear a greater supply of land will force down its price, hurting the balance sheets of real estate development companies which own large land banks.Major builder Abdullah Abdul Mohsin al-Khodari and Sons gained 1.9 percent, Saudi Cement Co. added 3.3 percent, and Red Sea Housing Services, a maker of modular buildings, rose 2.1 percent.Mazen al-Sudairi, head of research at al-Istithmar Capital in Riyadh, said rising prices and limited availability of land had dampened many areas of Saudi business activity, so the tax could have a broad, positive effect on the economy.
FOLLOW THIS ARTICLE