Saudi Arabia will sell a majority stake in the loss-making power firms it will merge, and increase electricity prices, but the industry will still receive state support. Saudi Arabia is privatising the power industry and merging ten state-owned regional power firms to form Saudi Electricity Co.

Tariffs for smaller customers will remain the same, but larger users will pay more after restructuring.

The state is expected to cut its stake from 85 to 20 per cent. An official at the Industry and Electricity Ministry confirmed the state would retain a stake but did not give a figure.