OREANDA-NEWS. March 25, 2015. Saudi Arabia's stock index edged up in early trade on Tuesday despite a minor panic in the real estate sector triggered by a plan to tax undeveloped land. Egypt's market rose broadly.

The main Saudi index climbed 0.6 percent as food maker Savola Group extended its rebound, jumping 3.5 percent.

Another major support was Saudi Cement Co, which rose 3.3 percent. Other cement stocks were also strong and modular building producer Red Sea Housing Services rose 4.0 percent after the Riyadh government took a major step towards implementing its stalled housing programme.

Aiming to push more land out into the market, the cabinet on Monday approved a proposal to tax undeveloped land in urban areas. Much urban land is currently owned by wealthy individuals or firms who prefer holding it as a store of value, or trading it for speculative profits, to the process of developing it.

It is unclear if the tax will apply to property developers, some of which have large land banks, but investors started dumping the stocks in the belief that land prices will be forced down by the tax.

Dar Al Arkan, on of the biggest Saudi Arabian developers, tumbled 4.5 percent and Emaar Economic City was down 4.7 percent.

Egypt's bourse added 0.7 percent with most stocks posting small gains. El Shams Housing and Urbanization climbed 1.2 percent after posting a 19 percent increase in 2014 net profit.