Marbella's coffers to gain 19.4 million euros thanks to the Saudi royal family's investment in more residences

Saudi Arabia's royal family will contribute up to 19.4 million euros to the Marbella municipal coffers. This is the direct cost of the project the royal family has launched to expand their palaces on their estate in the Golden Mile area, especifically at Finca Al Riyadh.

This expansion will require a land redistribution plan, which the town hall has already approved. The plan is currently open for public comment.

The private urban development rights granted to the landowner, Casa Al Riyadh, SL, will require the Saudi Arabian monarchy to make three payments: one of 12.23 million euros for the monetisation of the development rights; another of the same amount as compensation for exemption from the subsidised housing quota; and a third of 6.26 million euros as compensation to the general system of open spaces.

In total, this represents 30.74 million euros in revenue, which will be reduced to 19.4 million euros once the town hall expropriates the land to make the project viable.

This expropriation will cost 11.3 million euros, according to municipal sources. The road in question will integrate into the Casa de Saud residential complex, no longer as a road for public use.

To know the exact impact that the urban development operation will have on the coffers of the Marbella local administration, it is necessary to add the revenue from the execution of the project through the application of the tax on constructions, installations and works (ICIO), which the material execution budget will determine.

The land redistribution project, initiated by the descendants of Muhammad bin Saud I, began in 2024 with the approval of the urban planning amendment. The new plan defines an area of 189,783 square metres, with a buildable area of 40,240.45 square metres and the possibility of constructing 80 villas, up to 50 of which will be designated as royal palaces.

The proposed urban planning change entails an increase in both buildable land and building density, but maintains the maximum number of dwellings permitted in the area.

The project describes the purpose of these homes as "the predominantly summer residence of members of the Saudi royal family". However, "the natural growth of the Saudi royal family has created the need to expand the existing palace-residences and construct new residences, which must be accommodated alongside the existing ones to ensure the same privacy and security conditions.

The land readjustment project proposes the creation of a real estate complex comprised of commercial plots, including residential areas and private facilities.

Currently located on this site is the King Abdulaziz mosque, which has a capacity for over 800 people and includes residences for the imam and the head of the mosque's library. The complex's common areas consist of private access roads and a green space, with a total combined area of 145,713.77 square metres.

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