Saudi Arabia and the UAE signed a power‑grid memorandum of understanding on Thursday in Riyadh, a development reported by the Saudi state news agency SPA.
The MOU sets out a framework for connecting the two countries’ electricity networks and for trading power across borders. It also outlines joint technical, economic and environmental studies that will examine feasibility, cost‑effectiveness and ecological impact before any physical link is built.
Power grid interconnection plans
Under the agreement, the two governments will establish broad principles for linking their power grids and for exchanging and selling electricity. The principles will cover technical standards, pricing mechanisms and environmental safeguards, providing a clear roadmap for future infrastructure work.
The signing ceremony in Riyadh was attended by Saudi Energy Minister Prince Abdulaziz bin Salman, who heads the kingdom’s energy sector, and UAE Investment Minister Mohamed Hassan Alsuwaidi, responsible for the emirate’s strategic investment projects. Both ministers highlighted that a reliable, cross‑border power supply is essential for meeting growing demand and for enhancing energy‑system resilience in the region.
Rail connectivity and regional integration
In addition to electricity cooperation, the memorandum sets out steps to improve rail connectivity between Saudi Arabia and the UAE. The goal is to enable two‑way transport of goods and freight, complementing existing road links and easing logistics for businesses on both sides of the border.
The two nations will also work with other Gulf Cooperation Council members to expand the GCC Interconnection Grid under the bloc’s existing framework. Officials said the combined measures aim to boost energy‑system efficiency, streamline supply chains and deepen economic integration across the Gulf.