GCC Power Grid Expansion Secures AED 752 Million Boost from Abu Dhabi

The Abu Dhabi Fund for Development (ADFD) has extended an AED 752 million loan to the Gulf Cooperation Council Interconnection Authority (GCCIA) to support the expansion of the UAE’s national grid interconnection with the wider GCC electricity network.

The financing will enable construction of a 96 km, 400 kV double-circuit transmission line between the Al Silaa substation (UAE) and Salwa (Saudi Arabia). It also funds major upgrades to the Gonan, Al Silaa, and Salwa substations, including installation of advanced switchgears, circuit breakers, reactors, and modern control systems. The expansion is set to boost transmission capacity from 2,400 MW to 3,500 MW.

Mohammed Saif Al Suwaidi, Director-General of ADFD, described the project as a “strategic enabler of energy security” that aligns with the UAE’s energy transition and enhances grid reliability, emergency readiness, and regional cooperation.

GCCIA CEO Ahmed Ali Al Ebrahim confirmed this is the first phase of a larger regional initiative, including future connections with Kuwait, Oman, and southern Iraq, with total investments projected to exceed USD 1 billion. He estimated the project could unlock over USDD 20 billion in economic opportunities across the Gulf over the next 15 years.

The initiative directly supports the UAE Energy Strategy 2050 and the GCC’s broader goals for energy security, economic integration, and carbon reduction. It is also expected to strengthen the regional grid’s ability to integrate renewable energy sources like solar and wind, addressing demand fluctuations and enhancing operational flexibility.

Backed by extensive technical and economic studies, the project aims to deliver long-term stability, cost efficiency, and sustainability benefits for the region’s power sector.