Muscat, Sep 12, 2025 (The Arabian Wall Street) — The Gulf Cooperation Council Interconnection Authority (GCCIA) and Sohar International Bank have finalized a landmark $500 million financing deal to implement the highly anticipated Oman–Gulf electricity interconnection project.
The agreement marks a pivotal step in strengthening regional energy security and expanding opportunities for power trade across GCC member states. The financing will facilitate the direct integration of Oman’s electricity grid with the GCC’s shared system, reflecting deeper regional cooperation in critical infrastructure.
According to the project blueprint, a 400-kilovolt double-circuit transmission line will be constructed to connect the Al-Sila station in the UAE—owned by the GCCIA—with a new Ibri station in Oman. Spanning 530 kilometers, this strategic link is expected to reduce supply risks, increase grid resilience, and enhance the efficiency of power distribution across the Gulf.
Eng. Mohsen bin Hamad Al-Hadhrami, Chairman of GCCIA’s Board of Directors, emphasized that the project represents a qualitative leap in Gulf energy integration. He added that the interconnection will position Oman as a regional hub for electricity exchange, reinforcing the Sultanate’s role in driving economic diversification and long-term sustainability.
The initiative also aligns with broader GCC efforts to expand renewable energy sources and transition toward cleaner power. By facilitating cross-border electricity trade, the project will not only lower costs for consumers but also optimize energy usage across different markets.
The $500m Oman–Gulf electricity interconnection project underscores the Gulf’s strategic vision of energy cooperation, where integration serves both economic development and geopolitical stability.
