Electricity Industrial Policies in the Middle East and their Implications for Korean Companies

Abstract

The electric power industry plays a significant role in promoting the diversification of the economic structure in Middle Eastern countries as a stable supply of electricity is necessary for the operation of manufacturing and logistics facilities. Towards this, construction projects for renewable power plants and other new power plants should be continued in accordance with the increasing demand of electricity in the industrial sectors. Various projects for the modernization of transmission and distribution networks and the establishment of a smart grid system should also be promoted to enhance energy efficiency in the use of electricity. Recently regulatory measures prohibiting inefficient electric products are being implemented to reduce waste of electricity across the region. Considering these industrial trends and new business opportunities in the region, it is necessary to examine sectoral policies and industrial environments for broader cooperation between Korea and the Middle East in the field of the electric power industry. In particular, the industry can offer more policy implications to small- and medium-sized enterprises that are aiming to expand their businesses into the Middle East, as many of the projects mentioned above involve ICT (information and communication technology) and electronic components.