The Gulf Cooperation Council Interconnection Authority (GCCIA) has signed a $500 million interim financing agreement with Sohar International Bank to support the planned electricity interconnection between its regional grid and Oman.

The initiative aims to strengthen energy security and expand electricity trade among GCC member states, reflecting broader efforts to deepen Gulf economic and infrastructure integration.

The project calls for the construction of a 400-kilovolt double-circuit transmission line spanning 530 kilometers, linking the GCCIA-owned Al-Sila station in the UAE with a new Ibri station in Oman.

Eng. Mohsen bin Hamad Al-Hadhrami, chairman of the GCCIA board, said the project represents an important step in linking Gulf power networks and positioning Oman as a key hub for regional energy exchange.

The agreement follows a $205 million loan secured in June from the Abu Dhabi Fund for Development to support the expansion of the GCC grid’s connection with the UAE national network.

The GCCIA currently operates a shared electricity grid that links Kuwait, Saudi Arabia, Bahrain, Qatar, and the UAE.