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Cost of Doing Business 

The rates of land and basic services as electricity, water and energy in the industrial cities are supportive for industrial investment, starting with electricity from 10 halalas per kilowatt, and rate of water for industrial use from 1.7 riyals per cubic meter, while the rates of fuel oil from 12.5 halalas per liter. Annual land rrents start from SR 1 per square meter.

The following tables lay down the rates for all services in the industrial cities.

Industrial Land Rates
Industrial City Develop-ment Charges( paid only once (SR/m²) Basic rent for non-polluting factories for each m² (SR/m²) Additional rent for polluting factories for each m² (SR/m²) Total customer invoicing per annum per m² (SR/m²)
Annual Rent For main-tenance For average polluting For high polluting For non-polluting For average polluting For high polluting
Riyadh 1st. 50 0.02 0.98 9 24 1 10 25
Riyadh 2nd. 50 0.02 0.98 9 14 1 10 15
Riyadh 3rd. 25 5 TBD TBD TBD 5 5 5
Jeddah 1st. 50 0.02 0.98 9 24 1 10 25
Jeddah 2nd. 50 2 TBD 4 8 2 6 10
Jeddah 3rd. TBD TBD TBD TBD TBD 0 0 0
Dammam 1st. 50 0.02 0.98 9 24 1 10 25
Dammam 2nd. 50 0.02 0.98 9 14 1 10 15
Dammam 3rd. TBD TBD TBD TBD TBD 0 0 0
Makkah Al-Mukkarama 50 0.02 0.98 9 24 1 10 25
Ahsa 1st. 20 0.02 0.98 2 5 1 3 6
Ahsa 2nd. TBD TBD TBD TBD TBD 0 0 0
Qassim 1st. 20 0.02 0.98 2 5 1 3 6
Qassim 2nd. TBD TBD TBD TBD TBD 0 0 0
Al-Madina Al-Munawwara 20 0.02 0.98 5 9 1 6 10
Assir 20 0.02 0.98 2 5 1 3 6
Al-Jouf 5 0.02 0.98 1 2 1 2 3
Tabuk 5 0.02 0.98 1 2 1 2 3
Ha’il 5 0.02 0.98 1 2 1 2 3
Najran 5 0.02 0.98 TBD TBD 1 1 1
Sudair 10 1.5 TBD TBD TBD 1.5 1.5 1.5
Al-Kharj 10 1.5 TBD TBD TBD 1.5 1.5 1.5
Jazan 5 0.02 0.98 1 1 1 2 2
Ar’ar 5 1 TBD 1 1 1 2 2
Zulfi 5 1 0 1 1 1 2 2
Taif TBD TBD TBD TBD TBD 0 0 0
Al-Baha TBD TBD TBD TBD TBD 0 0 0
Shaqra’a 5 1 TBD 1 1 1 2 2

*TBD: To be decided.

Note: Land is currently not available in the following industrial cities:

  • Riyadh 1st. and 2nd.
  • Qassim 1st.
  • Dammam 1st. and 2nd.
  • Jeddah 1st. and 2nd.
  • Ahsa 1st.
  • Makkah Al-Mukkarama.

 

Cost of Services

Cost of Services provided by MODON

Service Cost of Service
Approval of General Plan 1 SR/square meter.
Minimum SR. 5,000 and maximum SR.25,000
License for Private Industrial City 1 SR/square meter
License for Technology Zone 1 SR/square meter
Modification of the activity or facility name for the same owner SR. 5,000
Waiving part of the land According to development charges
Transfer of ownership of the same license SR. 5,000
Transfer of ownership of different license According to the development charges
License fees for commercial entities  SR.200/- annually for each square meter of entitie's billboard area.
Cost of Electricity
Electricity:
  • Starting from SR. 0.05 [US$0.013] to SR. 0.26[US$0.069] per KwH for residential use, rising over ten bands in accordance with consumption.
  • Starting from SR.0.12[US$0.032] to SR.0.26[US$0.069] per KwH for industrial use.

For detailed tariff, kindly click here..

Energy Rates
Type Cost
Diesel SR.0.36 [US$0.096] per litre
Industrial Fuel Oil SR.0.125 [US$0.033] per litre
Liquid Gas SR.2.81 [US$0.75]/MMBTU
Cost of Water

Water: (Ministry of Water)

  1. First group: SR.0.10 [US$0.027] per cubic meter from 1 to 50 cubic meters
  2. Second group: SR.0.15 [US$0.04] per cubic meter from 51 to 100 cubic meters
  3. Third group: SR.2.00 [US$0.533] per cubic meter from 101 to 200 cubic meters
  4. Fourth group: SR.4.00 [US$1.066] per cubic meter from 201 to 300 cubic meters
  5. Fifth group: SR.6.00 [US$1.60] per cubic meter from 301 cubic meters onwards.
Water: (Private companies)
Water rates for drinking water, wastewater and industrial water in the industrial cities of (Dammam 1st. & 2nd., Ahsa, Riyadh 2nd., Al-Qassim and Jeddah 1st. & 2nd.): 
  1. Jeddah 1st. Industrial City:
    • Drinking water – SR. 7.47 / cubic meter
  2. Dammam 1st. & 2nd. Industrial Cities and Al-Ahsa Industrial City:
    • Drinking water – SR. 4.29 / cubic meter.
    • Industrial water – SR. 2.14 / cubic meter.
    • Wastewater – SR. 2.86 / cubic meter.
  3. Al-Qassim Industrial City:
    • Drinking water – SR. 3.42 / cubic meter.
    • Industrial water – SR. 1.71 / cubic meter.
    • Wastewater – SR. 2.28 / cubic meter.
  4. Riyadh 2nd. Industrial City:
    • Drinking water – SR. 6.25 / cubic meter.
    • Industrial water – SR. 1.71 / cubic meter.
    • Wastewater – SR. 2.28 / cubic meter.
  5. Jeddah 2nd. Industrial City:
    • Drinking water – SR. 6.97 / cubic meter.
    • Industrial water – SR. 1.99 / cubic meter.
    • Wastewater – SR. 2.99 / cubic meter.
Cost of Obtaining Loan
Name of the bank or fund Administrative charges (%) Maturity period
(years)
Grace period
(years)
Industrial Development Fund (2.5) 5 - 10 Two years after start of production