In an important regulatory step aimed at facilitating procedures for citizens and real estate developers, the National Water Company in the Kingdom of Saudi Arabia announced the adoption of a new and unified mechanism for connecting new properties to water and sewage networks, specifying a fixed fee of 1,000 Saudi riyals per meter.
General context and objectives of the decision
This decision comes as part of the major transformations underway in the Kingdom's services sector, in line with the objectives of Saudi Vision 2030, which focuses on improving quality of life and enhancing the efficiency of government services provided to citizens. Historically, the procedures for connecting basic services to new properties have been complex and costly, placing an administrative and financial burden on property owners and investors in the real estate sector. This new procedure aims to remove bureaucratic obstacles and ensure complete transparency by establishing a clear and standardized cost across the Kingdom.
The importance of the decision and its expected impact
This decision is expected to have a multifaceted positive impact on both the local and economic levels. Locally, citizens planning to build their own homes will benefit from clearer costs and faster processing of connection requests, thus accelerating the housing market and reducing financial burdens. For real estate developers, standardizing fees and procedures will reduce operational risks and facilitate financial planning for major residential and commercial projects, thereby enhancing the attractiveness of investment in the real estate sector, a key driver of the Kingdom's non-oil economy.
Implications for the National Water Company and the economy
For the National Water Company, this step contributes to improving its operational efficiency by automating and standardizing its internal processes, enabling it to better manage its resources and direct them towards strategic expansion and maintenance projects for water and wastewater networks. Economically, the decision supports the sustainable growth of the real estate and construction sector, enhances the Kingdom's competitiveness in ease of doing business indicators, and sends a positive message to local and international investors about the stable and stimulating regulatory environment in Saudi Arabia. This regulation represents a step towards achieving the water and financial sustainability of the sector, ensuring the provision of high-quality services for future generations.
