GCCIA, Sohar Bank Finalise USD 500 Million Oman–Gulf Power Interconnection

The Gulf Cooperation Council Interconnection Authority (GCCIA) and Sohar International Bank have finalised a landmark USD 500 million financing agreement to implement the highly anticipated Oman–Gulf electricity interconnection project.

The deal marks a significant step in strengthening regional energy security and unlocking opportunities for cross-border power trade among GCC member states. The financing will enable Oman’s electricity grid to be directly integrated with the GCC’s shared system, underscoring deeper cooperation in critical infrastructure.

According to the firm,  a 400-kilovolt double-circuit transmission line will be built to connect the GCCIA-owned Al-Sila station in the UAE with a new Ibri station in Oman. Stretching 530 kilometers, the link is expected to reduce supply risks, improve grid resilience, and enhance efficiency in electricity distribution across the Gulf.

Eng. Mohsen bin Hamad Al-Hadhrami, Chairman of GCCIA’s Board of Directors, described the interconnection as a qualitative leap in Gulf energy integration. He said it would position Oman as a regional hub for electricity exchange, reinforcing the Sultanate’s economic diversification and long-term sustainability goals.

The initiative also complements GCC-wide efforts to expand renewable energy and transition to cleaner sources. By facilitating cross-border electricity trade, the project aims to lower costs for consumers while optimising energy use across multiple markets.

The USD 500 million Oman–Gulf electricity interconnection highlights the Gulf’s strategic vision of energy cooperation, where integration strengthens both economic development and regional stability.