According to the literature about knowledge management capabilities, there are four main capabilities that need to be established and managed effectively in the company, to enhance the performance. The four main capabilities are technical resources, structural resources, cultural resources, and human resources. The main purpose of the current study is to identify the availability of the four capabilities and test their effect on service quality. A research model has been developed to describe the hypothesized relationship between the study variables and the needed data to test the conceptual model that has been collected from Saudi Binladen group (SBG) in Jeddah- Saudi Arabia. The data was collected by using a questionnaire that was developed based on the previous literature and according to the statistical analysis of the collected data, there are a positive effect for all the knowledge management capabilities on service quality. Several statistical techniques have been used to validate the model and test the hypotheses such as Reliability analysis and Regression analysis. The results of the current study contribute in filling the gap in the theory regarding the effect of knowledge management capabilities on service quality especially in Saudi Arabia. Also, the results enhanced the managers awareness about the importance of developing and managing effectively the knowledge management capabilities to improve the service quality.