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Saudi Arabia Vows to Take Legal Action Against Unlicensed Energy Use

The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
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Saudi Arabia Vows to Take Legal Action Against Unlicensed Energy Use

The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)
The Saudi government stressed the importance of obtaining the necessary licenses for the use petroleum products to generate electricity. (Asharq Al-Awsat)

As Saudi Arabia continues to push for energy efficiency, rationalization of consumption, and adherence to sustainability standards, the Saudi Ministry of Energy vowed to hold accountable those who waste oil products, or transfer them to various facilities for the purpose of generating electric power without obtaining the necessary licenses.

In a statement on Sunday, the ministry said that the use of petroleum products for such purposes exposes violators to legal accountability, in accordance with the provisions of the petroleum products trading system and within the framework of efforts to curb the waste of vital resources.

Electric power shall be obtained through the licensed service provider, in accordance with the rules and procedures issued by the Water and Electricity Regulatory Authority, the ministry added.

For its part, the Water and Electricity Regulatory Authority said that practicing any of electricity activities without obtaining the necessary statutory licenses was a violation of the provisions of the electricity system.

It added that the electricity by-law stipulates that all electrical activities are subject to the authority’s regulation, and that whoever practices any of them must have a valid license issued by the authority.

The authority noted that licensing aims to regulate these activities and to monitor the quality and reliability of services due to their importance to the consumers, the environment and the national economy.

It also urged those who practice any unlicensed activity to apply to the authority to rectify their status to avoid penalties for violations.

Saudi Arabia is a leading country in energy awareness and the rationalization of its uses. The Kingdom established a center for energy efficiency, which aims to be an international reference in this field, by working with local and international stakeholders in the government and private sectors, with the aim of developing knowledge and experience and applying best practices at home and abroad.

Saudi Arabia, through the Public Investment Fund (PIF), owns the National Company for Energy Efficiency Services (Tarshid), which seeks to be a pioneer in the energy efficiency field and to build towards a more sustainable future.

Tarshid has a mandate to develop, fund and manage impactful energy efficiency projects in government and commercial sectors that achieve significant energy savings for the Kingdom.

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Türkiye's Recent Political Events Hit Economy, Reserves, Says EBRD 

Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
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Türkiye's Recent Political Events Hit Economy, Reserves, Says EBRD 

Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)
Owners of a "bufe", a Turkish word to call small corner restaurants with a couple of stools outside or inside, wait for customers at Uskudar neighborhood in Istanbul, Türkiye, April 23, 2025. (Reuters)

Recent political events in Türkiye stymied the country's path to slowing inflation and the fallout affected the economy as well as foreign exchange reserves, the European Bank for Reconstruction and Development's chief economist said.

The detention of Istanbul mayor and main opposition leader Ekrem Imamoglu on March 19 sent the lira sharply lower and triggered market turmoil that pushed the central bank into a surprise interest rate hike in April, short circuiting an easing cycle that began at the start of the year.

Türkiye had been on a "slow but steady" path towards reducing inflation before the event, EBRD Chief Economist Beata Javorcik told Reuters.

"This path allowed it to cut interest rates, but that process was stopped by the recent political events, which brought turbulence and forced the central bank to reverse the direction," Javorcik said, adding raising interest rates put the brakes on the economy.

"This is costly in terms of economic performance, in terms of reserves ... and in terms of the reputational implications, undermining confidence of investors."

Türkiye has struggled with very high inflation in recent years, which peaked at 75% last May.

The bank downgraded its forecast for Türkiye’s economic growth this year by 0.5 percentage points to 2.8%, due to lower domestic and external demand and tighter-than-expected monetary policy.

Türkiye’s bonds and stock market had become a big draw for global money managers in the months leading up to Imamoglu's detention.

The appointment of Finance Minister Mehmet Simsek in 2023, widely seen as the architect of the government's return to a more orthodox economic policy, helped lure investors.

The EBRD said Türkiye’s central bank sold more than $40 billion in foreign exchange in the weeks following Imamoglu's arrest, pulling net reserves, excluding swaps, from more than $60 billion to less than $20 billion.

The latest reserve numbers, published on Monday, showed that Türkiye’s gross reserves had risen by $6 billion - the first such gain in nearly two months.