Arab nations are set to sign a landmark agreement in Cairo next week, facilitating power trade between the Gulf Cooperation Council (GCC) and the broader Middle East and North Africa (MENA) region, according to The National.
The agreement will be a key item on the agenda of an Arab ministerial meeting in the Egyptian capital. “It will open the door for electricity trading between the GCC and other Arab countries,” said Ahmed Al Ebrahim, CEO of the GCC Interconnection Authority (GCCIA), during the RAK Energy Summit in Ras Al Khaimah.
Al Ebrahim also confirmed that an electricity interconnection project linking Iraq to the GCC grid is expected to begin operations in 2025. “We plan to start exporting electricity to Iraq next year. Discussions with the Iraqi side regarding agreements and details are ongoing,” he said. He emphasized that this project marks a significant step for the GCC in leveraging excess renewable energy capacity for export.
The GCC, which includes Bahrain, the UAE, Kuwait, Saudi Arabia, Qatar, and Oman, began exploring a unified electricity grid in 1986. By 2011, all GCC nations were interconnected, with Oman joining in 2012.
In addition, a project connecting Saudi Arabia and Egypt is in its advanced stages and is expected to be completed by 2025 or 2026. This connection will enable the exchange of up to 3,000 megawatts of electricity between the two countries, Al Ebrahim noted.
When asked if the GCC would serve as the primary power supplier for a pan-Arab grid, Al Ebrahim said it would depend on market conditions, availability, and pricing. “It’s a dynamic system—sometimes we export, sometimes we import, depending on market needs,” he explained.
Connecting multiple grids across regions could also reduce the risk of widespread blackouts by allowing one region to draw power from another in case of failures.
Countries like Lebanon, Egypt, and Iraq, which face frequent power outages due to outdated infrastructure, fuel shortages, and rising demand, stand to benefit significantly from such interconnected grids.
Despite geopolitical tensions in the Middle East, Al Ebrahim highlighted strong political support for the project from the GCC and other Arab nations, particularly Egypt, Jordan, and Morocco.
The long-term vision for the initiative is to create a global interconnected power grid, enabling electricity to be transmitted across continents. Al Ebrahim mentioned that India and the UAE are in serious discussions about linking their electricity grids, a move that could eventually connect power systems across Asia, Africa, and Europe.
Reports last year also suggested that India was considering connecting its grid to those of Saudi Arabia and the UAE via undersea cables, further highlighting the potential for cross-regional power cooperation.