Self-Service Laundromat Business in Saudi Arabia 2026: Complete Guide to Investment and Smart Payment Operations

Introduction: What is a Self-Service Laundromat?

A Self-Service Laundromat is a facility equipped with commercial washers and dryers that customers use themselves for a set fee. The concept is simple: you bring your dirty clothes, pay the fee via coins, cards, or a smart app, load your clothes into the washer, select the appropriate program, and wait until the cycle ends. Within approximately one hour, you can wash and dry your entire load and leave with clean clothes.

This concept has been widespread in the United States and Europe for decades, with over 18,000 self-service laundromats in America alone generating revenues exceeding $6.8 billion annually. In Saudi Arabia and the Gulf, however, the concept is still rare and relatively new, which means a promising investment opportunity for early pioneers in this sector.

Why a Self-Service Laundromat? The Difference from Traditional Laundries

Self-service laundromats differ from traditional laundries in several fundamental aspects that make them an attractive option for certain customer segments and investors alike.

For the Customer

The cost is much lower as the customer only pays for using the machine, not for a full service. Speed is an important factor as the customer receives their clothes within an hour instead of waiting a day or more. Privacy is guaranteed because the customer handles their clothes themselves without anyone's intervention. Flexibility in timing as some self-service laundries operate 24 hours.

For the Investor

The project doesn't require a large number of employees and may even operate without any staff. Income is immediate cash without waiting to collect invoices. Operation can be around the clock. Remote management via apps and smart systems is possible. Good profit margins ranging between 20 and 35 percent.

Target Customer Segments

The success of a self-service laundromat project largely depends on understanding the targeted customer segments and meeting their needs.

Students

University students represent a core segment, especially those living in dormitories or rented apartments that don't have washers. Students typically need to wash their clothes weekly and look for a quick and economical solution. Providing additional services like free WiFi and a study area attracts this segment.

Expatriate Workers and Singles

Workers and single employees living in shared apartments make up a large percentage of self-service laundromat users. Many of them don't own personal washers and need a practical and economical solution. Proximity to worker housing and residential complexes ensures a continuous flow of customers.

Apartment Residents Without Washers

Some old residential buildings don't provide space for washers or their connections. Residents in these buildings rely on external laundries. Also, some small apartments and studios don't have room for a home washer.

Tourists and Travelers

Tourists staying for long periods in hotel apartments or short-term rentals need to wash their clothes. The cost of laundry in hotels is very high, and self-service laundromats provide an economical alternative at less than a quarter of the cost.

Small Business Owners

Beauty salons, spas, and small restaurants may use self-service laundromats to regularly wash towels and linens instead of buying their own commercial washers.

Smart Payment Systems and Apps

Payment systems in self-service laundromats have evolved significantly from mere coins to integrated systems supporting all modern payment methods.

Traditional Coin System

The coin system is still used in many laundromats, especially in emerging markets. The customer needs to convert their paper money to coins via a change machine. Advantages include simplicity and low infrastructure cost. Disadvantages include the need for coins, theft risks, and difficulty tracking.

Magnetic Card System

The customer buys a prepaid card from a special kiosk and loads it with the required amount. When using the washer, they swipe the card and the amount is automatically deducted. This system provides higher security and ease of tracking and management. Systems like Laundroworks and ESD offer these solutions.

NFC Contactless Payment Systems

Modern systems like Nayax and SpyderWash support payment via bank cards directly on the machine. Customers can tap their credit card or phone to start the cycle. They support Apple Pay, Google Pay, and Samsung Pay. They provide a seamless customer experience and increase average spending by approximately 15 percent.

Smartphone Apps

The latest technologies allow customers complete control via phone app. Apps like LaundryPay and CyclePay allow customers to scan a QR code on the machine to start the cycle. They can track laundry status and receive notification when the cycle ends. Add balance to the app via bank card from anywhere. Check machine availability before going to the laundromat.

Required Equipment and Machines

Choosing the right equipment is the foundation of project success, as high-quality machines mean higher reliability, lower maintenance costs, and longer lifespan.

Commercial Washers

Commercial washers differ from home washers in motor power, capacity, and durability. Available sizes include small washers with 8 to 12 kg capacity for regular clothes, medium washers with 18 to 25 kg capacity for larger loads, and large washers with 30 to 60 kg capacity for blankets and curtains. Recommended brands include Speed Queen, Huebsch, Dexter, and Electrolux Professional. Washer prices range from 8,000 to 30,000 SAR depending on size and specifications.

Commercial Dryers

Dryers are essential for providing a complete service. They come in sizes similar to washers. Stack dryers save floor space. Dryer prices range from 6,000 to 25,000 SAR. Gas dryers are preferred to save electricity costs.

Payment and Change Machines

A coin change machine converts paper money to coins at a cost of 1,500 to 8,000 SAR. A card recharge kiosk ranges from 15,000 to 40,000 SAR. Contactless card readers on each machine cost 1,500 to 4,000 SAR each.

Additional Equipment

Folding tables, laundry carts, comfortable waiting seats, adequate air conditioning, vending machines for detergent and snacks, TVs for entertainment, and free WiFi.

Usage Prices and Pricing Strategy

Appropriate pricing balances attracting customers and achieving required profitability.

Washer Pricing

Small washers 8 to 12 kg range from 15 to 25 SAR per cycle. Medium washers 18 to 25 kg range from 25 to 40 SAR per cycle. Large washers 30 to 60 kg range from 40 to 70 SAR per cycle.

Dryer Pricing

Dryers are usually priced by the minute or for a specified time period. 10 to 15 SAR per 15 minutes or 5 to 8 SAR per 10 minutes. A complete drying cycle needs 30 to 45 minutes at a cost of 20 to 40 SAR.

Pricing Strategies

Tiered pricing by size encourages use of larger machines. Peak time pricing higher and off-peak pricing lower. Loyalty programs and discounts for repeat customers. Monthly packages for intensive users.

Municipal Requirements and Licensing in Saudi Arabia

To establish a laundry in Saudi Arabia, you must comply with the requirements of the Ministry of Municipal and Rural Affairs and Housing.

Basic Licensing Requirements

A valid commercial registration in the laundry activity. A municipal license from the relevant municipality. Civil Defense approval for safety systems. Display the municipal license prominently inside the shop.

Space Requirements

Minimum space is 48 square meters in major cities like Riyadh, Jeddah, and Dammam. Minimum is 24 square meters in other cities. The shop must be in a commercial area on the ground floor or mezzanine. Activities outside the licensed shop boundaries are prohibited.

Safety Requirements

Provide manual fire extinguishers and fire alarm system. Appropriate ventilation and suitable temperature and humidity. Adequate lighting and clear emergency exits. First aid kit. No smoking inside the laundry. Workers must wear appropriate clothing and footwear.

Operational Requirements

Separate washed clothes from unwashed in separate containers. Don't place clothes on the floor and use designated baskets. Provide a changing area if users wish. A single license may be issued for multiple self-service laundry units as one activity.

Startup Costs and Budget

The costs of establishing a self-service laundromat vary significantly based on size, location, and equipment level.

Small Project 10 to 15 Machines

Washers and dryers 100,000 to 200,000 SAR. Shop fittings 30,000 to 50,000 SAR. Payment systems 20,000 to 40,000 SAR. Initial rent and deposit 30,000 to 60,000 SAR. Licenses and fees 10,000 to 20,000 SAR. Approximate total 200,000 to 400,000 SAR.

Medium Project 20 to 30 Machines

Washers and dryers 250,000 to 450,000 SAR. Shop fittings 60,000 to 100,000 SAR. Smart payment systems 50,000 to 80,000 SAR. Rent and deposit 50,000 to 100,000 SAR. Licenses and fees 15,000 to 30,000 SAR. Approximate total 450,000 to 800,000 SAR.

Large Project 40+ Machines

Washers and dryers 500,000 to 900,000 SAR. Shop fittings 100,000 to 180,000 SAR. Integrated payment systems 80,000 to 150,000 SAR. Rent and deposit 80,000 to 150,000 SAR. Licenses and fees 20,000 to 40,000 SAR. Approximate total 800,000 to 1,500,000 SAR.

Feasibility Study and Return on Investment

The self-service laundromat project is considered a good-return investment if planned and executed correctly.

Expected Revenue

Revenue per machine monthly ranges from 1,800 to 4,000 SAR depending on location and occupancy. A medium laundromat with 20 machines may achieve monthly revenues of 40,000 to 80,000 SAR. Annual revenue ranges from 500,000 to 1,000,000 SAR for a medium project.

Monthly Operating Costs

Rent from 8,000 to 25,000 SAR depending on location and space. Water and electricity bills from 5,000 to 15,000 SAR, the highest cost. Machine maintenance from 2,000 to 5,000 SAR. Cleaning materials and consumables from 1,000 to 3,000 SAR. Insurance and licenses from 500 to 1,500 SAR monthly. Employee if any from 3,000 to 6,000 SAR. Approximate total from 20,000 to 55,000 SAR monthly.

Profit Margin

Average profit margin in the self-service laundry industry ranges from 20 to 35 percent. Excellently managed projects may reach 40 to 50 percent margin. Net monthly profit for a medium project ranges from 10,000 to 35,000 SAR.

Capital Recovery Period

Recovery period ranges from 3 to 7 years depending on investment size and management. Projects in excellent locations may recover capital within 2 to 3 years. Self-service laundry success rate reaches 95 percent, higher than most small businesses.

Ideal Project Locations

Location selection is the most important factor in project success, as the wrong location can fail even the best-equipped laundromats.

Near Universities and Colleges

Students represent a core and stable customer segment. Large universities like King Saud University and King Abdulaziz University provide a huge customer base. Proximity to university housing or surrounding student apartments ensures continuous flow.

Dense Residential Neighborhoods

Neighborhoods with old residential buildings that don't provide washers. Areas with high tenant percentages. Middle and low-income neighborhoods where residents may not own personal washers.

Near Worker Housing and Expatriates

Industrial areas and worker cities. Neighborhoods with high concentration of expatriate workers. Proximity to furnished apartment complexes.

Tourist and Hotel Areas

Near hotels and hotel apartments in major cities. Tourist areas in Jeddah, Makkah, and Madinah. Serving visitors, Umrah pilgrims, and Hajj pilgrims looking for economical alternatives.

Inside Shopping Centers

Being in a commercial center provides customer flow from shoppers. Possibility of combining shopping and laundry. Available parking and higher security.

Advantages of Self-Service Laundromat Project

Continuous and Stable Income

Laundry is a basic need that isn't much affected by economic conditions. People need to clean their clothes regularly regardless of anything else.

Recession Resistant

During recessions, more people may switch to self-service laundries to save the cost of traditional laundries. Rising rents mean more tenants who may not own washers.

Doesn't Need Many Employees

The laundromat can operate with one employee for cleaning and simple maintenance. It can even work without employees with periodic visits from the owner. This significantly reduces operating costs.

24-Hour Operation

The laundromat can work 24 hours without constant presence. This means maximum asset utilization and increased revenue.

Remote Management

Smart systems allow monitoring machine status and revenues from anywhere. Receive instant alerts when any problem occurs. Run the project as an additional income source alongside another job.

Immediate Cash Income

No accounts receivable and no waiting to collect invoices. Customer pays before receiving service. Continuous liquidity to cover operating expenses.

Expansion Opportunities

After the first laundromat succeeds, other branches can be opened. Develop a repeatable brand. Possibility of franchise opportunities.

Disadvantages and Project Challenges

High Startup Costs

Initial investment is large, especially in purchasing high-quality commercial machines. The investor may need financing or partnership to cover costs.

High Water and Electricity Bills

Laundromats consume large amounts of water and electricity. These costs may constitute 15 to 25 percent of revenues. The solution is using energy and water-saving machines.

Continuous Maintenance

Commercial machines need regular maintenance to maintain performance. Maintenance and repair costs can be high. A machine stopping means revenue loss.

Theft and Vandalism Risks

Unmonitored laundromats may be subject to theft or vandalism. The solution is surveillance cameras, security systems, and good lighting.

Competition

In some areas, there may be competing traditional laundries. New competitors entering the market as demand grows. Distinction by quality, cleanliness, and service protects from competition.

Location Dependency

Project success is highly tied to location. A bad location may mean project failure despite quality equipment. Careful research and location analysis is necessary before commitment.

Project Startup Steps

Step One: Market Study

Analyze the target area and identify target segments. Study competitors if any. Estimate potential demand size.

Step Two: Location Selection

Search for a location that meets municipal requirements. Ensure infrastructure availability including water, electricity, and sewage. Negotiate an appropriate lease.

Step Three: Obtain Licenses

Extract commercial registration. Apply for municipal license. Obtain Civil Defense approval.

Step Four: Shop Setup

Design appropriate interior layout. Execute plumbing and electrical work. Install air conditioning, lighting, and fixtures.

Step Five: Purchase Equipment

Choose appropriate washers and dryers. Select the appropriate payment system. Purchase additional equipment and furniture.

Step Six: Installation and Test Run

Install and connect machines. Test all systems. Train employees if any.

Step Seven: Opening and Marketing

Marketing campaign to announce opening. Opening offers to attract first customers. Build a loyal customer base.

Tips for Success

Cleanliness First

A clean laundromat attracts customers and retains them. Clean machines and floors daily. Eliminate bad odors immediately.

Preventive Maintenance

Maintain machines regularly before breakdowns occur. Check hoses, filters, and pumps regularly. Keep basic spare parts.

Customer Service

Provide clear instructions in both Arabic and English. Contact number for help and complaints. Quick response to any problem.

Continuous Marketing

Presence on social media. Loyalty programs and offers for repeat customers. Partnership with residential complexes and universities.

Performance Monitoring

Track revenues and expenses accurately. Monitor each machine's performance individually. Make data-driven decisions.

Future of Self-Service Laundries in Saudi Arabia

Experts expect significant growth in the self-service laundry sector in the Kingdom in the coming years, driven by several factors.

Urban Expansion

Saudi cities are growing rapidly with increasing residential buildings and apartments. More tenants means more potential customers.

Changing Lifestyles

New generations are more open to the self-service concept. The search for quick and economical solutions is increasing. Acceptance of modern technologies and digital payment.

Vision 2030

Encouraging entrepreneurship and small projects. Economic diversification and supporting the service sector. Improving quality of life in cities.

Smart Technologies

Evolution of payment and remote management systems makes operation easier. Possibility of running the project as a passive income source. Attracting investors looking for low-effort projects.

Frequently Asked Questions

How much does it cost to use a self-service laundromat?

Cost ranges from 15 to 70 SAR per wash depending on load size, plus 20 to 40 SAR for drying. Approximate total 35 to 110 SAR for a complete wash and dry cycle.

How long does washing clothes take?

The wash cycle takes 25 to 45 minutes depending on the program. The drying cycle takes 30 to 45 minutes. Total approximately one to one and a half hours.

Do I need to bring laundry detergent?

Most self-service laundromats provide vending machines for laundry detergent and fabric softener. You can bring your own detergent if you prefer.

Are self-service laundromats safe?

Modern laundromats are equipped with surveillance cameras and good lighting. Choose daytime hours if you're concerned. Don't leave your clothes unattended for long periods.

Can I wash blankets and curtains?

Yes, self-service laundromats provide large washers dedicated to blankets, curtains, and large linens.

What are the operating hours?

This varies from one laundromat to another. Some operate from morning until midnight and some operate 24 hours.

Conclusion

The self-service laundromat project represents a promising investment opportunity in the Saudi market, which is still in its early stages for this type of service. The project combines numerous advantages including continuous income, recession resistance, and the ability to operate with minimal staff. Challenges exist including high startup costs and high dependence on location, but with good planning and market study, they can be overcome. Modern smart systems make project management easier than ever, opening the door for investors looking for an additional income source without needing full dedication. If you're looking for a service project with a simple concept, market demand, and scalability, the self-service laundromat is an option worth serious consideration.