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If you're a family with two children, you'll need at least a 2-bedroom flat, and if you really want to capitalise on space, you can opt for a villa or townhouse. For details about these costs, have a look at the "Accommodation in Jeddah" page.
You'll also need to think about schooling, which can be shockingly expensive. I doubt you'll be sending your children to local schools, and the international private schools generally cost between 15000 and 25000 SAR per annum - though the British and American schools will be even more expensive.
You'll also need a car; though, the good news is that petrol is dirt cheap. For an average 4-door middle-range sedan (used), expect to pay a lease payment of 30,000 SAR per annum; as always, prices can go up or down from there.
Other than that, there's things like househelp to consider (about 2000 SAR per month), and then groceries (75000 per annum).
Much will depend on your contract details. It is common to have an amount for housing included and also schooling but depending on you expectations these amounts may not cover the total cost. Cars are cheap compared to Europe and US petrol is very cheap but food is more expensive than Europe and the US also most other goods are more expensive - clothes, electronics etc. I think sports shoes are cheaper and childrens things. I do not know which country you are coming from but overall I would say cost of living is higher in Saudi than most European countries and the US. Having said that it can work out similar or cheaper to live here because companies tend to contribute towards things (like housing) and the social life is mainly home based so much less money is spent on 'going out'. Internet access is more expensive $$50-60 per month and mobile phones are expensive iPhone will cost $750 but calls are cheap.
David