Costs of doing business

Costs of doing business

Commercial and industrial rents

Inside industrial cities SAR0.08 per square meter per year [US$0.021]
Elsewhere SAR20 to SAR100 per square meter per year [US$5.33 to US$26.67]

 

Residential rents

Rentals for residential accommodation can vary immensely. Worker accommodation is usually the least expensive but the annual rental for senior management accommodation would likely exceed US$40,000 for a three bedroom furnished villa in a residential compound.

 

Utilities

Electricity SAR0.10 [US$0.027] per KwH for industrial use SAR0.05 [US$0.013] per KwH for a minimum up to 2,000 KwH for residential use, rising over eight bands in accordance with consumption.
Water Rising from SAR0.10 [US$0.027] over four further bands to a maximum of SAR6.00 [US$1.6] per cubic meter.

Employee costs

Employee incomes vary according to the status, position and experience of the employee as elsewhere in the world.

In addition 18% General Organization for Social Insurance (GOSI) contribution for annuities is payable (9% by the employer and 9% by the employee), for Saudis employed and 2% for occupational hazards: health insurance, transportation or compensation in lieu of cars for more senior personnel, return tickets to the country of origin and an end of service bonus payment to non Saudis.

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