Saudi Arabia and the UAE sign an MoU to explore electricity grid interconnection, power trading and cross-border rail links, aiming to improve supply-chain efficiency, facilitate trade and strengthen regional economic integration.
Saudi Arabia and the United Arab Emirates have signed a memorandum of understanding (MoU) to strengthen cooperation in electricity grid interconnection, power trading and cross-border railway connectivity, as the two Gulf countries seek to deepen economic integration and improve regional infrastructure.
The agreement was signed in Riyadh by Saudi Energy Minister and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz Al Saud and UAE Minister of Investment Mohamed Hassan Alsuwaidi. It establishes a framework for cooperation in energy infrastructure and rail transportation, with the objective of maximising economic benefits for both countries.
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Under the agreement, the two countries will establish general principles for electricity grid interconnection, including the exchange and sale of electricity. They will also undertake technical, economic and environmental feasibility studies to assess potential interconnection opportunities and identify the requirements for strengthening cross-border power infrastructure.
The initiative also includes coordination with other Gulf Cooperation Council (GCC) member states to expand the wider GCC Interconnection Grid. The cooperation is intended to improve electricity system efficiency, strengthen regional energy connectivity and support more effective use of available power resources.
Rail connectivity forms another key component of the MoU. The agreement outlines general principles for linking the two countries’ railway networks and facilitating the movement and transit of goods and freight across their borders. Technical and economic studies will help assess opportunities for railway integration and the development of more efficient cross-border transport links.
Improved rail connectivity is expected to support logistics integration, streamline supply chains and facilitate trade between Saudi Arabia and the UAE. Stronger transport links could also contribute to wider regional economic development by improving the movement of cargo and supporting connections between markets.
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The agreement reflects ongoing efforts by Gulf countries to strengthen cooperation in strategic infrastructure and improve regional connectivity. Saudi Arabia and the UAE are major economic partners, with shared interests in trade, energy, logistics and investment.
By combining plans for electricity interconnection with railway cooperation, the MoU creates a framework for further technical assessments and coordination between the two countries. The next steps will involve evaluating feasibility, infrastructure requirements and opportunities for collaboration with other GCC members, with the broader aim of supporting energy efficiency, cross-border commerce and regional integration.