Water connection fees for new properties are 1000 riyals per meter in Saudi Arabia

The National Water Company in Saudi Arabia announced a new, unified mechanism for connecting new properties to the water network, setting a fixed fee of 1,000 Saudi Riyals for each water meter installed. This decision comes as part of the company's efforts to streamline procedures for citizens and real estate developers, and to enhance transparency in the vital services sector.

Background and general context of the decision

This measure aligns with the strategic objectives of Saudi Vision 2030, which aims to enhance the efficiency of government services and improve infrastructure across the Kingdom. The real estate and construction sector has witnessed rapid growth in recent years, driven by large-scale housing projects and government support programs such as the Sakani program. This significant urban expansion has necessitated a clear and streamlined regulatory framework for essential infrastructure services, most notably water and sanitation services.

Previously, water connection procedures and costs varied based on multiple factors, causing confusion and delays for developers. By standardizing fees, the National Water Company aims to eliminate ambiguity and provide a standardized cost that developers can easily incorporate into their financial plans and project budgets.

The importance of the decision and its expected impact

This decision is of great importance on several levels, and is expected to have a tangible positive impact on the real estate and service sectors:

• For real estate developers: This decision provides complete clarity regarding water connection costs, facilitating financial planning for new projects and reducing unforeseen financial risks. It also contributes to accelerating the completion of residential and commercial projects by streamlining bureaucratic procedures.
• For citizens and new owners: Although this cost may be included in the final price of the property, it guarantees the new owner an approved and official water delivery service in accordance with the highest technical standards, ensuring water quality, connection safety, and service sustainability.
• For the National Water Company: Unifying fees contributes to improving the company’s operational efficiency and regulating its revenues, which can be reinvested in developing, expanding, and maintaining water and sewage networks, in a way that serves the Kingdom’s water sustainability goals.

This regulation is an important step towards more effective governance of the water sector, and ensuring that basic services reach all new real estate projects in an organized and sustainable manner, thus supporting quality of life and enhancing the attractiveness of the investment environment in the Kingdom of Saudi Arabia.