In a strategic move aimed at regulating the water sector and improving the efficiency of services provided to citizens and residents, the Saudi Water Authority announced a comprehensive update to water and wastewater connection fees. This announcement comes as part of the release of the “Water and Wastewater Services Provision Guide (Version 1.5 for 2025),” which establishes precise regulatory frameworks for calculating costs based on building area and the type of beneficiary sector.
General context and historical background of the water sector in Saudi Arabia
The water sector in Saudi Arabia is undergoing radical transformations in line with the objectives of Saudi Vision 2030 and the National Water Strategy. Historically, water services were managed directly by traditional government entities, but with rapid economic development and population growth, the need arose to restructure the sector to operate on commercial and regulatory principles that ensure sustainability. The Saudi Water Authority was established to assume the regulatory and supervisory role, ensuring the provision of high-quality services, reducing water loss, and enhancing infrastructure in a desert environment that demands prudent water resource management.
New pricing details for water and sewage connection fees
First: The residential sector
The authority clarified that the fees for connecting services to the residential sector are primarily based on the building area. For buildings with an area not exceeding 675 square meters, the fees are set at 3,000 riyals for a water connection and 5,000 riyals for a sewage connection. A progressive fee applies for larger areas, while actual implementation costs are calculated for areas exceeding 3,000 square meters. An additional fee of 1,000 riyals is also imposed for each additional building unit.
Second: The non-residential sector (commercial and industrial)
Service connection fees for the non-residential sector start at SAR 15,000 for water and SAR 20,000 for sewage services for small areas. Gradual increases are applied based on building area, in addition to accounting for actual implementation costs and application fees to ensure the operational needs of these facilities are met.
Third: The government sector and real estate developers
For the government sector, fees start at SAR 15,000 for water and SAR 20,000 for sewage, with increases based on area. Large projects are calculated at the actual cost without additional charges per unit. If the real estate developer installs the connections, a fee of SAR 1,000 is required for meter installation or data registration, as per regulatory procedures.
The importance of the event and its expected impact
This update has far-reaching implications on several levels:
- Local impact: The decision contributes to fair pricing of services based on actual consumption and property size. It also encourages real estate developers and residents to engage in sound urban planning and provides reliable infrastructure that reduces outages and sanitation problems.
- Regional and economic impact: This regulation enhances the attractiveness of the Saudi market for real estate and commercial investments, as investors prefer environments with clear and transparent legislation. It also positions the Kingdom among the leading countries regionally in the efficient management of public facilities.
- Environmental and international impact: This update aligns with international efforts to achieve the Sustainable Development Goals (SDGs), specifically Goal 6 on clean water and sanitation. By pricing services to reflect their true cost, consumption is rationalized and precious water resources are preserved for future generations.
In conclusion, the Saudi Water Authority affirms that these regulatory steps are not merely an update to fees, but rather part of a comprehensive national strategy to enhance the sustainability of the water and sanitation sector, raise the efficiency of the infrastructure, and improve the quality of life for all residents of the Kingdom of Saudi Arabia.
