New law in Saudi to enhance energy efficiency, promote low-carbon circular economy

New law in Saudi to enhance energy efficiency, promote low-carbon circular economy

RIYADH — The Energy Supplies Law, approved by the Saudi Council of Ministers on Tuesday, is expected to have several advantages that contribute to improving the efficiency of energy supply and promote a low-carbon circular economy.

The law stipulates the formation of a committee, with representatives of 15 bodies, to study executive regulations and approve privatization criteria.

The law aims to privatize the energy sector, including electricity supply, oil refineries, petrochemicals, water desalination, mining, agriculture, construction and related sectors, Asharq Al-Awsat newspaper reported.

The law will have several economic benefits. It will help increase the country's gross domestic product (GDP), create job opportunities in various regions, provide opportunities for public participation, and enable the development of manufacturing industries to produce value-added and strategic materials.

The economic benefits also include optimal privatization of economic and sustainable projects benefiting from supportive government programs, and flexibility in the transfer and use of hydrocarbons, in addition to enhancing local content by empowering human resources, production chains, research and development, innovation and social impact.

According to the provisions of the law, no costs will be shared by the state, citizens, or residents, while the costs for the industrial and commercial sectors will be unmeasurable.

Regarding the regulatory impact, the law is