Hanoi:Saudi Arabia and the United Arab Emirates have signed a memorandum of understanding (MoU) to strengthen strategic cooperation in electricity grid interconnection, power trading, and cross-border rail connectivity.

According to Qatar News Agency, the agreement was signed by Saudi Minister of Energy Prince Abdulaziz bin Salman and UAE Minister of Investment Mohamed Hassan Alsuwaidi.

The MoU is designed to maximize economic benefits and strengthen integration between the two nations. It sets out general principles for electricity grid interconnection and the exchange and sale of electricity. The two countries will also conduct technical, economic, and environmental studies and coordinate with other Gulf Cooperation Council (GCC) member states to expand the GCC Interconnection Grid, in line with the GCC General Agreement for Grid Interconnection.

Additionally, the agreement addresses rail connectivity between Saudi Arabia and the UAE, establishing a framework for two-way transportation and transit of goods and freight. This cooperation aims to enhance logistics integration, improve supply chain efficiency, and support economic development.