This paper examines the effect of vertical and horizontal shading devices on the quality of daylight in buildings and the associated energy saving. Excessive daylight in architectural spaces contributes negatively to the energy consumption in buildings. Blinds and shading devices are good solutions to attenuate the surplus amount of daylight in spaces. Accordingly, this study evaluates the effect of shading devices on the amount of light flux and the associated solar energy in buildings. It estimates the energy consumption attributed to lighting spaces for three common positions of shading devices. Computer simulation strategy was undertaken to correlate the illuminance level in spaces with room geometry and architectural shading elements. The Holophane model for lighting calculations was used to estimate the average illuminance level on workplane and correlate it with the expected saving energy in buildings. The study concluded that there is an optimal orientation for shading devices that keeps the internal illuminance level within the acceptable range with minimum amount of solar heat gain. (C) 2009 Elsevier Ltd. All rights reserved.