Abu Dhabi Fund for Development (ADFD) has signed a Dhs752m ($205m) financing agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA) to support the expansion of the GCC power grid interconnection with the UAE’s national electricity network, state news agency WAM reported.
The agreement, signed at ADFD’s headquarters in Abu Dhabi, seeks to strengthen regional energy security and facilitate power exchange between the UAE and other Gulf Cooperation Council (GCC) member states.
The infrastructure project forms part of broader efforts to enhance regional energy resilience and enable wider economic and developmental integration, aligning with the UAE Energy Strategy 2050.
The strategy aims to create an energy system that is both sustainable and economically efficient.
Initiative will increase electricity transmission capacity between UAE and GCC
Designed as a strategic grid upgrade, the initiative will significantly increase electricity transmission capacity between the UAE and the GCC network.
Technical and economic feasibility studies have supported its design, in line with the GCCIA’s vision for a durable, regionally connected power infrastructure.
The project includes the construction of a 400kV double-circuit overhead transmission line spanning 96 kilometres, connecting the Al Silaa substation in the UAE with the Salwa substation in Saudi Arabia.
It also entails the expansion of three substations — Gonan, Al Silaa, and Salwa — and the installation of advanced 400kV switchgears, circuit breakers, and reactors, along with modern protection and control systems to enhance grid efficiency and reliability.
“This project reflects ADFD’s commitment to financing high-impact infrastructure that supports the UAE’s development priorities,” said Mohammed Saif Al Suwaidi, director-general of ADFD. “Power grid interconnection is a strategic enabler of energy security and a foundation for accelerating the transition to clean and sustainable energy sources.”
He added that the project would “increase the efficiency of the power grid, improve emergency preparedness, strengthen connectivity with regional partners, and promote the integration of renewable energy,” supporting the GCC’s sustainability and emissions reduction goals.
Engineer Ahmed Ali Al Ebrahim, CEO of the GCCIA. called the initiative the first phase of a broader collaboration with ADFD during the current grid expansion and noted parallel efforts to interconnect with Kuwait, Oman, and southern Iraq, representing a total investment exceeding $1bn.
“By leveraging increased transmission capacity, we aim to activate a unified Gulf electricity market to facilitate cross-border power trade,” Al Ebrahim said. “This could create economic opportunities projected to exceed $20bn over the next 15 years.”
