Approval of Municipal Service Charges under Council of Ministers` Decree No. 485 dated 05/11/1437 A.H.

By Trainee Lawyer: Abdul Elah Al-Ghanamy

The Council of Ministers headed by the Vice Custodian of the Two Holy Mosques, the Crown Prince, approved the amendment to municipal service charges as per the schedule set below:

First: approval of the municipal service charges.

Second: within a term not exceeding ninety days as of the issuance date of this decree, the Minister of Municipal and Rural Affairs shall issue the regulations and decisions necessary for the application of Clause (First) provided herein, provided that they determine the value of each charge up to the determined maximum amount and set a time schedule taking into account the gradual implementation thereof. The Minister may, at his own discretion in this regard, postpone, stop or not impose any of the municipal service charges in some cases. Such regulations and decisions shall come into force as of the validity date of Clause (First) hereof.

The charges cover the following 11 activities:

1. Issuing construction permits (for three years),
2. Extending construction permits (for one year)
3. Issuing or extending construction restoration permits,
4. Issuing demolition permits,
5. Issuing construction completion certificate,
6. Issuing business licenses,
7. Collection of commercial wastes,
8. Collection of domestic wastes,
9. Issuing street digging licenses,
10. Issuing licenses to establish or operate telecommunication towers,
11. Issuing licenses to establish or operate ATMs.

Information has revealed that charges for issuing construction permits vary depending on the type of building. Accordingly, the maximum charge for residential buildings is 4 Riyals per square meter; the maximum charge for commercial residential buildings is 6 Riyals per square meter; the maximum charge for commercial buildings is 10 Riyals per square meter; and the maximum charge for walls is two Riyals per square meters.

Charges for issuing building restoration and demolition permits are determined at a maximum of two Riyals per square meter of residential buildings; at a maximum of 3 Riyals per square meter of commercial residential buildings; at a maximum of 5 Riyals per square meter of commercial buildings; and at one Riyal per square meter for walls.

As for the issuance of construction completion certificate, charges are determined at:

1. 200 Riyals for residential building certificate,
2. 300 Riyals for commercial residential building certificate,
3. 400 Riyals for commercial building certificate.

As for the issuance of business licenses, charges are determined at

1. The annual maximum of 10 thousand Riyals for the construction of fuel station,
2. The annual maximum of 200 Riyals for the issuance of vehicle license,
3. The maximum of 12 thousand Riyals for hotels, hotel apartments and residential resorts per unit,
4. The maximum of 300 Riyals per square meter of commercial stores,
5. The maximum of 10 Riyals per square meter for the issuance of licenses for oil and grease shops; professional workshops; wedding halls; rest areas; kitchens and restaurants; amusement parks; medical activities and other activities.

As for the collection of wastes, there are two different types:

1. Collection of Residential Wastes: charges are determined based on electricity meter starting from 5 Riyals up to 50 Riyals per month,
2. Collecting of Commercial Wastes: the annual maximum is determined at 10 thousand Riyals for the license of fuel station; at 500 Riyals per unit for the annual maximum for hotels, hotel apartments and residential resorts. As for commercial stores; oil, grease and car wash shops; professional workshops; wedding halls; rest areas; kitchens and restaurants; amusement parks; medical activities and other activities, the annual maximum is determined at 10 Riyals per square meter.

As for street digging, charges are determined based on depth, traffic congestion and digging time at the maximum of 15 Riyals per linear meter. As for the establishment of telecommunication towers, charges are determined at 10 thousand Riyals on establishment. As for the annual charges, they are determined at the maximum of 600 Riyals. Finally, as for license for establishment and operation of ATM, charges are determined at 10 thousand Riyals per each ATM and the annual maximum of 1200 Riyals for ATM operation.