Saudi Arabia and the United Arab Emirates have signed a memorandum of understanding (MoU) to strengthen strategic cooperation in power grid interconnection, electricity exchange and rail connectivity between the two countries.
The MoU was signed in Riyadh by Prince Abdulaziz bin Salman bin Abdulaziz, Saudi Minister of Energy and Minister of Industry and Mineral Resources, and Mohamed Hassan Alsuwaidi, UAE Minister of Investment.
The agreement establishes a framework for cooperation aimed at maximizing the mutual economic benefits of enhanced energy and transport connectivity between Saudi Arabia and the UAE.
Under the MoU, Saudi Arabia and the UAE will work toward establishing the general principles governing power grid interconnection and the exchange and sale of electricity between the two countries.
The cooperation will include technical, economic and environmental studies to assess the requirements and opportunities associated with the interconnection and electricity exchange.
The two countries will also coordinate with other Gulf Cooperation Council (GCC) member states on the potential expansion of the GCC Interconnection Grid, in accordance with the GCC General Agreement for Grid Interconnection.
The initiative is expected to support greater energy-system efficiency, electricity exchange capabilities and regional energy integration.
The MoU also covers cooperation on rail connectivity between Saudi Arabia and the UAE, with the framework providing for the development of general principles governing the two-way transport and transit of goods and freight.
The planned rail connectivity is intended to strengthen logistics integration between the two markets, improve supply-chain efficiency and facilitate the movement of goods across the region.
The initiative is also expected to support broader economic development and enhance regional connectivity.
