Deals Counterparts

$700M UAE-Oman Electricity Interconnection Project

Development Transmission announced Oman Feb 2, 2026
USD700M
Deal Value
1600 MW
Capacity
construction
Stage
UAE-Oman Electricity Interconnection Project
Project

The GCC Interconnection Authority begins implementation of a $700 million project linking the UAE and Oman grids, enhancing energy security, renewable integration, and regional cooperation. The project involves the construction of two 400-kilovolt transmission lines spanning approximately 530 kilometres, connecting the Al Sila substation in the UAE with the Ibri substation in Oman.

Deal Analysis

The $700 million UAE-Oman electricity interconnection project, spearheaded by the GCC Interconnection Authority, represents a significant investment in regional energy infrastructure. This initiative aims to bolster energy security, facilitate the integration of renewable energy sources, and foster greater cooperation between the UAE and Oman. The project involves the construction of approximately 530 kilometers of 400-kilovolt transmission lines, with a capacity of 1600 MW, connecting the Al Sila substation in the UAE to the Ibri substation in Oman. Financing is being provided by the Qatar Fund for Development and Sohar International Bank, highlighting the collaborative nature of the undertaking. This development underscores the growing emphasis on cross-border energy infrastructure within the Gulf Cooperation Council (GCC). By linking the UAE and Oman's electricity grids, the project enhances grid stability and allows for the efficient transfer of power between the two nations. The involvement of the Ministry of Electricity, Water and Renewable Energy further solidifies the commitment to modernizing and diversifying the energy landscape in the region. The project's focus on renewable energy integration aligns with broader sustainability goals and positions the GCC as a leader in clean energy adoption.
  • Project value of $700 million signifies a substantial investment in regional infrastructure.
  • Involves the construction of 530 kilometers of 400-kilovolt transmission lines.
  • Key players include the GCC Interconnection Authority, the Ministry of Electricity, Water and Renewable Energy, Qatar Fund for Development, and Sohar International Bank.
  • Aims to enhance energy security and facilitate renewable energy integration.
Market Context: The transmission sector in the GCC is experiencing growth driven by increasing electricity demand, the need to integrate renewable energy sources, and a desire to enhance regional energy security through interconnected grids.

Source Intelligence

KEY DETAILS

The project involves the construction of two 400-kilovolt transmission lines spanning approximately 530 kilometres, connecting the Al Sila substation in the UAE with the Ibri substation in Oman. It also includes the establishment of two main 400-kilovolt substations in Ibri and Al Baynounah, equipped with advanced protection, control, and communication systems. "The project involves the construction of two 400-kilovolt transmission lines spanning approximately 530 kilometres , connecting the Al Sila substation in the UAE with the Ibri substation in Oman . It also includes the establishment of two main 400-kilovolt substations in Ibri and Al Baynounah , equipped with advanced protection, control, and communication systems.

Deal Size
The GCC Interconnection Authority begins implementation of a $700 million project linking the UAE and Oman grids, enhancing energy security, renewable integration, and regional cooperation.
Capacity
Additionally, a dynamic compensation station will enhance grid stability and increase transmission capacity up to 1,600 megawatts , improving electricity exchange efficiency between Oman and GCC states.
Location
connecting the Al Sila substation in the UAE with the Ibri substation in Oman . It also includes the establishment of two main 400-kilovolt substations in Ibri and Al Baynounah
Announcement
News Desk 2 February 2026
PARTIES MENTIONED IN SOURCE
G
GCC Interconnection Authority developer

"The GCC Interconnection Authority begins implementation of a $700 million project linking the UAE and Oman grids, enhancing energy security, renewable integration, and regional cooperation."

Q
Qatar Fund for Development investor

"US$600 million contributed via agreements with the Qatar Fund for Development and Sohar International Bank"

S
Sohar International Bank investor

"US$600 million contributed via agreements with the Qatar Fund for Development and Sohar International Bank"

high quality Enriched Feb 19, 2026

Timeline

Announced
Feb 2, 2026
Signed
Closed

Market Context

This deal is part of the Transmission sector in Oman.
140
Transmission deals
16
deals in Oman
1 of 139 Transmission deals tracked this month · Updated daily

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