ADFD, GCCIA sign Dhs752 million deal to expand GCC grid connectivity

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 Dhs752 million ($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 Mohammed Saif Al Suwaidi, Director-General of ADFD, and Eng. Ahmed Ali Al Ebrahim, CEO of the GCCIA.

The signing was also attended by Eng. Sharif Salim Al Olama, Undersecretary of UAE Ministry of Energy and Infrastructure and Board Member of the GCCIA; 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. 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.

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 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 $20 billion over the next 15 years.”

Earlier Abu Dhabi Fund for Development (ADFD) has published its 2024 Annual Report, showcasing its pioneering achievements in advancing strategic objectives aligned with the UAE’s foreign aid policy. The report underscores the ADFD’s vital role in supporting global sustainable development and enhancing the quality of life for communities worldwide. The report emphasizes ADFD’s significant contributions to major national agendas, including the UAE Export Development Policy, UAE Centennial 2071, and Abu Dhabi Economic Vision 2030. These efforts are led by the Abu Dhabi Exports Office (ADEX), part of Abu Dhabi Fund for Development (ADFD), aimed at strengthening the global competitiveness of the UAE’s industrial sector.

By the end of 2024, ADFD’s cumulative development financing reached Dhs216.5 billion, benefitting 107 countries across various continents. This total comprises Dhs157 billion in concessional loans, Dhs57.6 billion in government grants, and Dhs1.9 billion in direct contributions. The financing supported strategic projects in critical sectors including renewable energy, infrastructure, such as housing, transportation, education, technology, and water security -helping to drive economic growth and improve quality of life in partner nations.

ADFD remains committed to supporting the national economy and the long-term growth of Emirati companies, while enhancing their international reach. In this context, ADEX allocated Dhs4 billion in financing by the end of 2024 to support UAE national exports, facilitating access to over 40 global markets.

WAM