Construction & Development

Environmental Impact

Synonyms: Environmental Impact Assessment، EIA، Environmental Assessment، Environmental Permit Study

Last updated: 2026-09-25

Short Definition

Environmental impact assessment (EIA) is a systematic study carried out before a project is built to identify and predict its likely effects on air, water, soil, biodiversity and the surrounding community, and to set measures to prevent or mitigate them.

Overview

Environmental impact assessment (EIA) is a systematic study carried out before a project is built to identify and predict its likely effects on air, water, soil, biodiversity and the surrounding community, and to set measures to prevent or mitigate them. It also sets a plan to monitor these effects during construction and operation. Environmental impact itself means the sum of the positive and negative effects caused by the project. In Saudi Arabia this is governed by the Environment Law issued by Royal Decree No. (M/165) dated 19/11/1441H and the Implementing Regulation for Environmental Permits for the Establishment and Operation of Activities. The National Center for Environmental Compliance (NCEC) issues environmental permits, and activities are classified into three categories according to the severity of their environmental impact; activities in the second and third categories must obtain the Center's approval of an EIA study before receiving a construction permit. Permits cover the establishment, operation, modification, expansion and closure stages. The assessment is therefore not limited to 'major projects' in a loose sense; it depends on the activity's classification. In practice, EIA affects a project's schedule, cost and design: it may require relocating buildings, controls on dust, noise and working hours, management of construction and demolition waste and stormwater, or protection of habitats and coastlines. Delays in environmental permits are among the most common causes of delay in large projects, while compliance supports project financing and reduces the risk of fines and stoppage.

Legal Basis

Environment Law issued by Royal Decree No. (M/165) dated 19/11/1441H and Council of Ministers Decision No. (729) dated 16/11/1441H, together with the Implementing Regulation for Environmental Permits for the Establishment and Operation of Activities applied by the Ministry of Environment, Water and Agriculture ecosystem. Environmental permits are issued by the National Center for Environmental Compliance; activities are classified into three categories, second- and third-category activities require the Center's approval of an EIA study, and permits apply to new and existing activities at the establishment, operation, modification, expansion and closure stages.

Practical Example

A developer plans a 120,000 m² mixed-use project on the outskirts of Riyadh, with housing and a shopping centre. The activity was classified in a category requiring an EIA study, so the developer hired an environmental consultancy for SAR 180,000. The study identified risks of dust and noise for an adjacent residential district, truck traffic, construction waste and stormwater runoff, and proposed water spraying to suppress dust, limits on noisy working hours, waste segregation with about 30% recycled, and a stormwater detention basin. After the Center approved the study, the environmental construction permit was issued and works began, with an operation permit to be sought later before the shopping centre opens.

Common Mistakes

  • ✗Assuming EIA is only for giga-projects, although the need for it depends on the activity's classification in the regulation.
  • ✗Starting site works before obtaining the environmental construction permit where one is required.
  • ✗Preparing the study as a formality after design is finished, instead of integrating its findings early to avoid redesign.
  • ✗Overlooking that a construction permit does not replace an operation permit, and that modification or expansion may require a new permit.
  • ✗Failing to implement the approved monitoring and mitigation plan during construction, exposing the project to violations.

International Differences

EIA is a well-established global practice: in the European Union it is governed by directives defining which projects are subject to it; in Turkey the environment ministry issues ÇED decisions under the EIA regulation; in Egypt the environment law requires the Environmental Affairs Agency's approval for projects with impact; and in the UAE federal and local authorities require similar studies. The Saudi approach resembles these models in classifying activities by severity of impact, while concentrating compliance oversight and permitting in a single national center.

FAQs

Does every real estate project need an EIA study?▾
No. Activities are classified into three categories by the severity of their impact, and second- and third-category activities require the National Center for Environmental Compliance to approve the study. The classification is set out in the implementing regulation for environmental permits.
Which authority issues environmental permits in Saudi Arabia?▾
Environmental permits are issued by the National Center for Environmental Compliance. This rests on the Environment Law issued by Royal Decree No. (M/165) of 1441H and its permits regulation.
What is the difference between an environmental construction permit and an operation permit?▾
The construction permit covers the building phase of the project, while the operation permit covers its operation after completion. The permit system also covers modification, expansion and closure.
What does an EIA study usually include?▾
It includes a project description and the existing environmental baseline, the expected effects on air, water, soil and the community, mitigation measures and an environmental monitoring plan. It is usually prepared by a qualified environmental consultancy.
How does EIA affect project cost?▾
It adds the cost of the study and mitigation measures but reduces the risk of stoppage, fines and redesign. It also eases financing from lenders that require environmental compliance.

In Other Languages

Arabic
التأثير البيئي

تقييم الأثر البيئي هو دراسة منهجية تُجرى قبل إنشاء المشروع لتحديد آثاره المحتملة على الهواء والماء والتربة والتنوع الأحيائي والمجتمع المحيط والتنبؤ بحجمها، ثم تحديد إجراءات منعها أو تخفيفها وخطة رصدها أثناء الإنشاء والتشغيل.

English
Environmental Impact

Environmental impact assessment (EIA) is a systematic study carried out before a project is built to identify and predict its likely effects on air, water, soil, biodiversity and the surrounding community, and to set measures to prevent or mitigate them.

Turkish
Çevresel Etki

Çevresel etki değerlendirmesi (ÇED), bir proje kurulmadan önce onun hava, su, toprak, biyolojik çeşitlilik ve çevredeki topluluk üzerindeki olası etkilerini belirlemek, öngörmek ve bunları önleme ya da azaltma önlemlerini ortaya koymak için yapılan sistematik bir çalışmadır.

Related Terms

Amlakire

About Amlakire

Amlakire is an integrated Saudi real estate management system, supporting agencies and owners in managing rentals, maintenance, and reports with high efficiency, preparing lease data for documentation on the Ejar platform, and compliant with Kingdom regulations.

Learn More→