The Abu Dhabi Fund for Development (ADFD) has signed a landmark financing agreement worth AED752 million ($205 million) 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.
The agreement aims to enhance regional energy security, boost power exchange capabilities between the UAE and fellow GCC member states, and contribute to broader economic and infrastructure integration across the region.
The agreement was signed at ADFD headquarters in Abu Dhabi by Mohammed Saif Al Suwaidi, director-general of ADFD, and engineer Ahmed Ali Al Ebrahim, CEO of the GCCIA.
The signing ceremony was also attended by engineer Sharif Salim Al Olama, Undersecretary of the UAE Ministry of Energy and Infrastructure and GCCIA board member; Dr. Saif Saeed Al Qubaisi, acting director-general of Regulatory Affairs at the Abu Dhabi Department of Energy and GCCIA board member; along with other senior officials from both entities.
Read: WHO: Over 666 million people still lack electricity despite global progress
Strengthening regional energy resilience
The project is a key component of the UAE’s long-term strategy to diversify and modernize its energy infrastructure, in alignment with the UAE Energy Strategy 2050, which prioritizes efficiency, sustainability, and economic growth.
The initiative is designed to reinforce the GCCIA power grid and significantly expand electricity transmission capacity with the UAE. By strengthening the interconnection between the UAE and the broader GCC network, the project aims to bolster grid reliability and support shared regional energy goals.
Key infrastructure components
The project includes the construction of a 400kV double-circuit overhead transmission line stretching 96 kilometers, linking the Al Silaa substation in the UAE with the Salwa substation in Saudi Arabia.
It also involves the expansion and enhancement of three major substations located in Gonan, Al Silaa, and Salwa, which will be equipped with new 400kV switchgears, circuit breakers, and reactors.
Additionally, the development includes state-of-the-art protection and control systems, designed to optimize grid performance, stability, and reliability.
Based on comprehensive technical and economic feasibility studies, the project aligns with the GCCIA’s broader mission to build a durable and future-ready power infrastructure capable of meeting the growing demand for electricity in the region.
Al Suwaidi said: “The project reflects ADFD’s commitment to financing high-impact infrastructure that supports the UAE’s development priorities. 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: “Our collaboration with the GCC Interconnection Authority is a practical example of regional energy integration. The project will increase the efficiency of the power grid, improve emergency preparedness, strengthen connectivity with regional partners, and promote the integration of renewable energy into a unified network, reinforcing the GCC’s collective commitment to sustainable goals and emissions reduction targets.”
Al Ebrahim commented: “This project represents the first phase of our partnership with ADFD during the current expansion of the GCC power grid. Alongside this effort, we are also advancing key interconnection initiatives with Kuwait, a direct link with Oman, and a southern Iraq grid connection. Together, these projects represent a total investment of over $1 billion.”
He added: “By leveraging increased transmission capacity, we aim to activate a unified Gulf electricity market to facilitate cross-border power trade, creating significant economic value, with projected opportunities exceeding $20 billion over the next 15 years.”
Forward-looking vision
Al Ebrahim emphasized that the interconnection upgrade is essential for meeting the region’s rising power needs and enabling greater flexibility in electricity trade between member states.
The partnership between ADFD and GCCIA underscores the strategic importance of regional collaboration in infrastructure development, particularly in the energy sector, which is central to the Gulf region’s long-term economic and environmental sustainability goals.
