Abu Dhabi Fund for Development (ADFD) has signed a 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 grid. Valued at AED 752 million (USD 205 million), the agreement aims to strengthen regional energy security and catalyse power exchange between the UAE and other GCC member states.
The agreement was signed at ADFD headquarters in Abu Dhabi by His Excellency Mohammed Saif Al Suwaidi, Director General of ADFD, and His Excellency Eng. Ahmed Ali Al Ebrahim, CEO of the GCCIA. The signing was also attended by H.E. Eng. Sharif Salim Al Olama, Undersecretary of UAE Ministry of Energy and Infrastructure and Board Member of the GCCIA; H.E. Dr. Saif Saeed Al Qubaisi, Acting Director General of Regulatory Affairs at Abu Dhabi Department of Energy and Board Member of GCCIA, alongside other senior officials from both parties.
The project aims to strengthen the interconnectivity between the UAE and GCC power grid, enhancing regional energy resilience and enabling broader economic and developmental integration. It also aligns with the UAE Energy Strategy 2050, which aims to establish an energy system that is efficient and sustainable, contributing to long-term national economic growth.
H.E. Mohammed Saif Al Suwaidi reaffirmed ADFD’s commitment to financing strategic infrastructure projects that align with the UAE’s development goals. He highlighted the critical role of grid interconnection in building a resilient energy network and advancing regional efforts toward cleaner, more sustainable power generation.
Designed as a strategic infrastructure upgrade, the project will reinforce the GCCIA grid and significantly expand electricity transmission capacity with the UAE. Based on detailed technical and economic feasibility studies, the initiative aligns with the GCCIA’s forward-looking vision to deliver a reliable and durable regional power infrastructure.
The project includes the construction of a 400kV double-circuit overhead transmission line extending 96 kilometres to connect the Al Silaa substation in the UAE with the Salwa substation in Saudi Arabia. It also involves the expansion of three key substations in Gonan, Al Silaa, and Salwa, and the installation of upgraded 400kV switchgears, circuit breakers and reactors. The project will also oversee the development of advanced protection and control systems, improving grid efficiency and reliability.
H.E. Mohamed 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."
Regarding the agreement H.E. Eng. Ahmed Ali Al Ebrahim, CEO of the GCCIA, said: “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 USD 1 billion.”
He further explained: “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 USD 20 billion over the next 15 years.”
Eng. Al-Ebrahim also praised the cooperation with ADFD, noting its important role in financing critical infrastructure that supports the GCC’s sustainable development agenda.
ADFD continues to play a leading role in advancing the energy sector. Over the years, the Fund has financed pioneering projects that have strengthened energy security and contributed to sustainable development, underscoring its steadfast commitment to advancing the global clean energy agenda.