In Saudi Arabia, the comprehensive Environmental Law was promulgated by Royal Decree No. M/34 dated 228/07/1428. It requires in Article 5 that the approval process for any project that may cause an effect on the surrounding environment will include the development and review of an EIA study. Accordingly, in Saudi Arabia, all industrial projects and the majority of infrastructure projects have a legal requirement for EIA assessment.
Article 1(18) of the Environmental Law defines "Environmental assessment of projects" as, "A study conducted to determine potential or actual environmental effects of a project and appropriate measures and means to prevent or limit adverse effects and achieve or increase the project's positive outcome for the environment in line with applicable environmental standards." Article 5 of this Law further provides that, "Licensing authorities shall ensure that environmental assessment studies are conducted in the feasibility study phase for projects with potential adverse impact on the environment. The authority executing the project shall be in charge of conducting environmental assessment studies in accordance with environmental bases and standards specified by the competent authority in the Implementing Regulations." "Projects" are defined in Article 1 (16) as, "Any facility or activity with potential impact on the environment."
The above requirements shall be met for all Privatization projects.