Saudi Arabia’s Housing Ministry plans to impose taxes on undeveloped land across the country.

The ministry says the policy targets unused, privately owned land across the country that can be better utilised to solve the kingdoms housing problems.

While a topic of discussion for many years, it was not until September 2014 that the taxation measure was referred to the Supreme Economic Council for review.

“The Housing Ministry is pushing towards passing a law to tax undeveloped land. The ministry has submitted a detailed study in this regard, in which it supported fast approval of the decision, which will have a positive impact on land price hikes and the monopolisation of land,” said Housing Minister Shuwaish al-Duwaihi, quoted by the Saudi Press Agency.

Al-Duwaihi was speaking after he attended a session on 12 January of the Shura Council to give details of the country’s housing programme.

“Riyadh is at the top of the list of Saudi cities suffering a shortage of land supply,” said Al-Duwaihi.

According to government statistics, there are currently 750,000 families eligible for public housing. Despite a $67bn plan in 2011 to build 500,000 homes over several years, Saudi Arabia’s poorer citizens have suffered from rising rental prices in cities such as Riyadh and Jeddah.