The UAE has strengthened its regional energy ties by signing a major financing agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA). Backed by the Abu Dhabi Fund for Development (ADFD), the deal is valued at AED752 million ($205 million). It will expand the Gulf power grid and improve the UAE’s link to Saudi Arabia.
This initiative is part of the UAE Energy Strategy 2050, which supports sustainable growth and a reliable power supply for the future.
Key Technical Upgrades Across the Grid
The agreement outlines the construction of a 96-kilometre, 400kV double-circuit overhead transmission line. It will connect the Al Silaa substation in the UAE to the Salwa substation in Saudi Arabia.
In addition, the project includes:
- Upgrades to substations in Gonan, Al Silaa, and Salwa
- Installation of advanced 400kV switchgears, circuit breakers, and protection systems
- Enhanced transmission capacity, emergency preparedness, and grid stability
These improvements are expected to boost power reliability across the region and support future clean energy integration.
Enhancing Regional Energy Security and Sustainability
Mohammed Saif Al Suwaidi, Director-General of ADFD, commented:
“This project reflects our commitment to financing strategic infrastructure that aligns with the UAE’s national priorities. Interconnecting power grids is key to securing reliable energy and achieving clean energy goals.”
He added that this collaboration with GCCIA will support renewable energy integration while building a flexible and efficient power system across the GCC.
A Unified Gulf Power Market Worth $20 Billion
Ahmed Ali Al Ebrahim, CEO of GCCIA, confirmed that this is the first phase of a broader regional initiative. He said future phases will connect Kuwait, Oman, and southern Iraq, further unifying power markets across the Gulf.
“These projects represent over $1 billion in investment. With stronger grid connections, we aim to create a unified electricity market that supports cross-border trade,” he said.
“This could unlock more than $20 billion in economic value over the next 15 years.”
This UAE-GCCIA partnership represents a vital step toward a resilient, clean, and interconnected energy future for the region.
