UAE backs $205m grid project with GCC as it eyes $20bn energy market

The Abu Dhabi Fund for Development (ADFD) has signed a financing agreement worth AED752m ($205m) with the Gulf Cooperation Council Interconnection Authority (GCCIA) to expand the GCC power grid and connect it more closely with the UAE’s national electricity network.

Signed in Abu Dhabi, the agreement aims to bolster regional energy security, enhance grid reliability, and support clean energy integration.

The project also aligns with the UAE Energy Strategy 2050, which focuses on creating a sustainable and efficient energy system to support long-term economic growth.

UAE grid project highlights

• A new 400kV double-circuit overhead transmission line will stretch 96km, linking the Al Silaa substation in the UAE to the Salwa substation in Saudi Arabia
• Upgrades will be made to substations in Gonan, Al Silaa, and Salwa, including the installation of advanced 400kV switchgears, circuit breakers, and protection systems
• The project aims to improve electricity transmission capacity, grid efficiency, and emergency preparedness across the region

Mohammed Saif Al Suwaidi, Director-General of ADFD, 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.

“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.”

Ahmed Ali Al Ebrahim, CEO of GCCIA, said this marks the first phase of a broader regional grid expansion, with additional connections planned for Kuwait, Oman, and southern Iraq. He said these efforts will unlock an estimated $20bn in economic value from regional power trade over the next 15 years.

He said: “These projects represent a total investment of over $1bn. 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 $20bn over the next 15 years.”