Analysis

Riyadh's cheapest water band rises tenfold on 1 January 2027

The National Water Company's 2027 tariff, announced on 25 October 2026, raises water in Riyadh's first residential band from SAR 0.10 to SAR 1 per m³ and doubles the second band to SAR 2.

Households in Riyadh will pay SAR 1 per cubic metre for the first 15 m³ of water they use each month from 1 January 2027, up from SAR 0.10. The National Water Company announced the new residential, non-residential and government tariffs on 25 October 2026.

Four bands instead of five

The schedule in force to 31 December 2026, published in the Saudi Water Authority's April 2026 service guide, has five residential bands, rising from SAR 0.10 to SAR 6.00 per m³ for water, with sewerage at half the water rate. The 2027 schedule has four. Water in the second band, 16 to 30 m³ a month, doubles from SAR 1.00 to SAR 2. The top rate of SAR 6 is unchanged, but it now applies from 46 m³ a month instead of above 60 m³.

A fixed charge before the first litre

The SAR 5 monthly meter fee for the smallest meters gives way to a fixed charge of SAR 20 for water and SAR 10 for sewerage. Each extra home sharing the meter adds the same again. The 2027 rates exclude VAT.

Who pays the gap

Riyadh's water is costly to supply: in 2024 desalinated seawater made up 77.5% of the 994.5 million m³ distributed to the city. Nationally, tariff revenue of US$0.65 billion in 2025 covered about 22% of the levelised cost of desalination, according to a KAPSARC estimate, and the Ministry of Finance covers the shortfall. On the day of the announcement, families receiving Social Security were granted a SAR 500 monthly stipend.

What the full profile adds

Who runs Riyadh's water, and how is the work split between the regulator, the bulk buyer and the National Water Company? How much of the city's wastewater is treated and reused? Which projects are due before 2030, from the Al-Haer treatment plant to the Riyadh–Qassim pipeline, and what should buyers watch through 2027?

The full report, Riyadh City Intelligence Profile, is available for USD 99 at https://ourfuturewaterintelligence.com/reports/riyadh-city-intelligence-profile. For a free overview, see https://ourfuturewaterintelligence.com/cities/riyadh.

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