Saudi Arabia, UAE sign MoU on electricity interconnection, rail links

Saudi Arabia and the United Arab Emirates have entered into a memorandum of understanding (MoU) to enhance their strategic cooperation in several key areas. The agreement, signed by Saudi Energy Minister Prince Abdulaziz bin Salman and UAE Investment Minister Mohamed Hassan Alsuwaidi, focuses on electricity grid interconnection, power trading, and cross-border rail connectivity.

The primary goal of the MoU is to maximize economic benefits and strengthen integration between the two nations. Under the agreement, Saudi Arabia and the UAE will establish general principles for electricity grid interconnection and the exchange and sale of electricity. The countries will also conduct technical, economic, and environmental studies, as well as coordinate with other members of the Gulf Cooperation Council (GCC) on expanding the GCC Interconnection Grid.

Additionally, the MoU covers rail connectivity between Saudi Arabia and the UAE. It establishes a framework for two-way transportation and transit of goods and freight, aiming to improve logistics integration, enhance supply chain efficiency, and support economic development in the region.