Oman-GCC
Direct Electrical Interconnection Project Announced

Muscat,
1 Feb 2026 (ONA) — The GCC Interconnection Authority (GCCIA) announced the
commencement of the direct electrical interconnection project between the
Authority’s grid and the grid of the Sultanate of Oman.

This
strategic move reflects the advancement of Gulf integration within the energy
sector and the strengthening of regional infrastructure. The announcement was
made during a ceremony held this evening in Muscat under the auspices of Mohsen
Hamad Al Hadrami, Undersecretary of the Ministry of Energy and Minerals and
Chairman of the Board of Directors of the GCCIA.

Al
Hadrami emphasized that the direct electrical interconnection project with the
Sultanate of Oman is not merely a technical expansion of a power grid, but
rather an extension of a long-term strategic vision established by the GCC
leaders. They approved the Gulf Interconnection Project as a cornerstone of
Gulf infrastructure integration, driven by the conviction that energy security
is a fundamental pillar for national stability, economic growth, and
sustainable development.

He
noted that the Gulf interconnection has proven, over more than two and a half
decades, to be one of the most successful models of joint Gulf action,
contributing to the reliability of electrical grids and achieving significant
economic savings for GCC member states.

He
added that the direct connection project with Oman enhances the depth of the
Gulf grid and increases its operational flexibility, embodying an advanced
model of Gulf partnership in financing vital infrastructure projects to support
energy transition and sustainable development in the region.

For
his part, Eng. Ahmed Ali Al Ibrahim, CEO of the GCCIA, explained that the
project is one of the largest expansion projects in the Authority’s history. It
aims to boost the Gulf grid’s capacity to accommodate the rapid growth in
electricity demand, amid the expansion of internal grids, significant changes
in electrical loads, and increased power generation across the GCC, while also
supporting renewable energy projects and enhancing grid readiness for
emergencies.

He
confirmed that the project will achieve substantial operational and economic
benefits, enhance the reliability of Gulf electrical grids during the
transition toward renewable energy, and increase power exchange capacity among
member states. He further noted that the project embodies the Authority’s
ability to transform the strategic vision of the GCC leaders into executive
projects with tangible impact. He revealed that the total cost of the project
is approximately USD 700 million, funded through Gulf financing partnerships.
The Authority previously signed financing agreements with the Qatar Fund for
Development and Sohar International Bank to provide USD 600 million in
financing for the project.

Fahad
Hamad Al Sulaiti, Director General of the Qatar Fund for Development, stated
that the Fund’s participation in financing the project falls within its
commitment to strengthening the economies of Arab countries by supporting vital
infrastructure projects and sustainable development through the provision of
necessary financing and loans.

He
pointed out that this initiative is based on a shared belief in the importance
of regional cooperation, noting that energy represents an essential element for
achieving stability and socio-economic development. He added that the project
reflects the importance of regional cooperation and Gulf partnerships in
supporting strategic energy projects, contributing to the construction of a
more resilient and sustainable electrical system in the region.

The
project involves the construction of two 400 kV electrical lines spanning
approximately 530 kilometers, connecting the Authority’s Al Sila station in the
United Arab Emirates with the Ibri station to be established by the Authority
in the Sultanate of Oman. It also includes the construction of two main 400 kV
transmission stations in both Ibri and Al Bynouna, equipped with the latest
protection, control, and communication systems according to international best
practices.

Additionally,
the project includes the construction of a dynamic compensator station to help
increase grid stability and transmission capacity, providing a total capacity
of up to 1,600 MW. This will significantly enhance the flexibility of the Gulf
grid and raise the Sultanate of Oman’s capacity to exchange energy with high
efficiency with the connected Gulf countries.

The
project will contribute to supporting the reliability of electrical grids,
increasing support capacities during emergencies, and facilitating the
integration of new and renewable energy into Gulf grids, leading to significant
economic and operational savings.

The
direct interconnection with the Sultanate of Oman is a strategic step toward
enhancing the integration of Gulf and regional energy networks, increasing the
reliability and sustainability of electricity systems, and supporting the GCC’s
goals in energy transition and carbon emission reduction, thereby solidifying
the Gulf Interconnection’s position as a global model for regional energy
integration.

— Ends/AG