By Staff Reporter
The United Arab Emirates and Saudi Arabia have signed a memorandum of understanding (MoU) to strengthen cross-border railway connectivity and explore electricity-sharing opportunities, in a move aimed at deepening economic cooperation between the two Gulf economies.
The agreement was signed in Riyadh on October 8, 2026, by UAE Minister of Investment Mohamed Hassan Alsuwaidi and Saudi Minister of Energy and Minister of Industry and Mineral Resources Prince Abdulaziz bin Salman bin Abdulaziz.
Under the agreement, the two countries will explore ways to develop railway links to facilitate the movement of goods and cargo across their shared border. The initiative will include technical and economic studies to identify opportunities for improving logistics, streamlining cross-border trade and strengthening supply chains.
The MoU also provides for cooperation in the electricity sector, including the potential exchange and sale of power between the two countries.
Technical, economic and environmental feasibility studies will be conducted to assess opportunities for electricity interconnection and determine the viability of proposed projects.
The UAE and Saudi Arabia will also coordinate with other Gulf Cooperation Council (GCC) member states to explore ways of expanding the regional electricity interconnection network.
The initiative is expected to support greater efficiency in energy systems while strengthening regional infrastructure integration.
The agreement highlights the two countries’ efforts to align their transport and energy networks, improve trade efficiency and promote broader economic cooperation across the Gulf region.
Source: Emirates News Agency (WAM)
