Sign In
العربية 920000425

 Cost of Industry

​​​​The rates of land and basic services such as electricity, water and fuel within the industrial cities are a stimulation for industrial investment, wherein the electricity rates start from 18 halalas per kilowatt, the rates of water for industrial use start from Saudi Riyals 2.5 per m³ and the rates of annual land rent start from SR 1 for each m².
Following are the prominent service rates:


Tariff for Industrial Consumption:

Type of Tariff

Consumer Price

Industrial

18 halalas/kilowatt hour


Tariff for Residential Consumption:

Type of Tariff

Consumer Price

Residential

Consumption segments (kwh / month)

halalas/kwh

1 – 2000

5

2001 – 4000

10

4001 – 6000

20

6001 – 8000

30

More than 8000

30


Tariff for Commercial Consumption:

Type of Tariff

Consumer Price

Commercial

Consumption segments (kWh / month)

halalas/kWh

1 – 4000

16

4001 – 8000

24

More than 8000

30


Rate of water for Industrial use:

Region

Industrial City

Type of Tariff

Price (SR/m ³)

Central Region

Riyadh 2nd.

Drinking water

6.85

Wastewater

2.5

Industrial water

1.881

Riyadh 3rd.

Drinking water

6.85

Wastewater

2.5

Industrial water

1.881

Al-Zulfi

Drinking water

6.85

Wastewater

2.5

Industrial water

1.881

Al-Qassim 1st.

Drinking water

3.75

Wastewater

2.5

Industrial water

1.881

Al-Qassim 2nd.

Drinking water

3.75

Wastewater

2.5

Industrial water

1.881

Sudair

Drinking water

6.25

Wastewater

2.5

Industrial water

1.881

Al-Kharj

Drinking water

6.25

Wastewater

2.5

Industrial water

1.881

Shaqraa

Drinking water

6.85

Wastewater

2.5

Industrial water

1.881

Durma

Drinking water

6.85

Wastewater

2.5

Industrial water

1.881

Ha’il

Drinking water

6.85

Wastewater

2.5

Industrial water

1.881

Western Region

Jeddah 1st.

Drinking water

8.2

Wastewater

3.4

Industrial water

5.06

Jeddah 2nd.

Drinking water

8.2

Wastewater

3.4

Industrial water

2.354

Jazan

Drinking water

8.2

Wastewater

3.4

Industrial water

2.354

Al-Baha

Drinking water

8.2

Wastewater

3.4

Industrial water

2.354

Tabuk

Drinking water

8.2

Wastewater

3.4

Industrial water

2.354

Eastern Region

Dammam 1st.

Drinking water

4.7

Wastewater

3.25

Industrial water

2.354

Dammam 2nd.

Drinking water

4.7

Wastewater

3.15

Industrial water

3.575

Dammam 3rd.

Drinking water

4.7

Wastewater

3.25

Industrial water

2.354

Al-Ahsa

Drinking water

4.7

Wastewater

3.25

Industrial water

2.354

MODON Oasis in Al-Ahsa

Drinking water

4.7

Wastewater

3.25

Industrial water

2.354

Hafr Al-Batin

Drinking water

4.7

Wastewater

3.25

Industrial water

2.354

 


Type

Cost

Diesel

33 halalas/liter

Gas

SR. 4.69/million British Thermal Units (BTU)



Note: MODON charges allocation fees on a monthly basis which ceases at the start of production to motivate the investor to accelerate the start of production process.

Industrial City

Yearly Rental Rate (SR/m ²)

Against Allocation (SR)

Entitlement Period against Allocation (for new land)

Riyadh 1st.

5.0

-

-

Jeddah 1st.

5.0

-

-

Dammam 1st.

5.0

-

-

Riyadh 2nd.

4.0

-

-

Dammam 2nd.

4.0

-

-

Makkah AlMukarama

4.0

-

-

Qassim 1st.

4.0

1

Monthly

Al-Ahsa 1st.

4.0

1

Monthly

AlMadina AlMunawwara

4.0

1

Monthly

Ha’il

4.0

0.5

Monthly

Assir

3.0

0.5

Monthly

Jeddah 2nd.

3.0

1

Monthly

Jeddah 3rd.

3.0

1

Monthly

Dammam 3rd.

3.0

1

Monthly

Sudair

2.0

0.5

Monthly

Al-Kharj

2.0

0.5

Monthly

Qassim 2nd.

2.0

0.5

Monthly

Durma

3.0

1

Monthly

Tabuk

1.0

5

One-time

Najran

1.0

5

One-time

Jazan

1.0

5

One-time

Al-Baha

1.0

5

One-time

Al-Baha 2nd.

1.0

5

One-time

Al-Zulfi

1.0

5

One-time

Ar’ar

1.0

5

One-time

Shaqraa

1.0

5

One-time

Hafr Al-Batin

1.0

5

One-time

Al-Ahsa 3rd.

1.0

5

One-time

 

Annual Rent Rates for Supportive Factories

  • Supportive industries are the factories that produce non-added value products or products that cannot be exported or are harmful to the environment and infrastructure of the industrial cities, namely, (ready-mixed concrete, blocks, tiles, stone and marble, Interlocks, dust producing industries, oils and their derivatives, chemicals, pesticides and the kind, as well as recycling of plastics and iron).
  • The general rental rate is applied to the industrial facilities those are committed to environmental and safety requirements specified by MODON.
  • An incentive rental rate is applied in the event of an industrial facility's commitment to environmental and safety requirements for the entire year. Option of applying the same rate as it was before the amendment, in case of any violation by the industrial facility.
  • The rental rate is applied to industrial facilities engaged in activities harmful to the environment, in case an industrial facility violates the environment and safety systems for a period of not less than six months with the facility's commitment to address environmental violations. In case of non-compliance during the full year from the date of the offense, the procedures for the withdrawal of the Industrial land are initiated.

 

Annual Rent Rates for Supportive Factories (SR/m ²)

Industrial City

Rate for polluting factories

General Rate

Incentive Rate

Al-Ahsa 2nd. (Salwa)

10

8

6

Al-Baha 1st.

13

10

7

Al-Baha 2nd.

7

5

4

Al-Kharj

20

15

11

Dammam 3rd.

46

35

25

Al-Zulfi

13

10

7

Qassim 2nd.

13

10

7

AlMadina AlMunawwara

39

30

21

Tabuk

13

10

7

Jazan

13

10

7

Jeddah 3rd.

23

25

18

Ha’il

33

25

18

Sudair

20

15

11

Shaqraa

13

10

7

Durma

26

20

14

Ar’ar

13

10

7

Assir 2nd.

20

15

11

Najran

13

10

7

Hafr Al-Batin

10

8

6

 



Cost of Services

Services

Cost of Services

Approval of General Plan

SR. 1/ m².
Minimum SR. 5,000 and maximum SR.25,000

License for Private Industrial City

5 halalas/m²

License for Technology Zone

5 halalas/m²

License fees for Commercial entities

SR. 200/year for each square meter of entities’ billboard area

Fees for modification of the contract, including:

-       Modify activity or facility name for the same owner;

-       Waiving portion of the land;

-       Transfer of ownership of the same license;

-       Transfer of ownership of different license.

 

 

SR. 10,000

Note:

The investor pays an amount of SR. 10,000 for “Administrative Services” for a single service which can include several modifications.

 

 

 

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 the start of production

 

 
​​