Saudi Arabia, UAE sign agreement on electricity interconnection and rail links

Riyadh - On Thursday, the Kingdom of Saudi Arabia and the United Arab Emirates (UAE) signed a memorandum of understanding (MoU) in Riyadh, aimed at deepening strategic cooperation in several key areas. The agreement was signed by Saudi Energy and Industry Ministers, Prince Abdulaziz bin Salman and Mohamed Hassan Alsuwaidi, the UAE's Minister of Investment. The primary objectives of the agreement are to maximize economic benefits and enhance regional integration between the two nations.

The MoU outlines plans for establishing general principles on electricity grid interconnection and the exchange and sale of electricity between Saudi Arabia and the UAE. Furthermore, both countries will conduct joint studies to assess the technical, economic and environmental aspects of the proposed interconnection. The agreement also calls for coordination with other GCC member states to expand the GCC Interconnection Grid in line with the GCC General Agreement for Grid Interconnection.

In addition to electricity cooperation, the MoU also covers the development of rail connectivity between Saudi Arabia and the UAE. A framework will be created for the two-way transportation and transit of goods and freight, with the goal of improving logistics integration, streamlining supply chain efficiency, and fostering economic development by bolstering transport links between the two countries.