The UAE and Saudi Arabia have signed a memorandum of understanding to deepen cooperation on rail links, electricity and broader infrastructure. The agreement was signed on Thursday by Mohamed Hassan Alsuwaidi, the UAE's Minister of Investment, and Prince Abdulaziz bin Salman, Saudi Arabia's Minister of Energy.
Under the MoU, the two countries will work on developing rail connections between them aimed at easing the movement of goods and cargo across the border. The agreement also covers cooperation on electricity grid interconnection, including the exchange and sale of power, with both sides committing to carry out technical and economic feasibility studies on linking their networks.
The document further calls for coordination with other Gulf Cooperation Council states to support the wider regional push to expand the Gulf's shared electricity interconnection system. According to both governments, the broader goal is to improve supply-chain efficiency, ease cross-border trade and strengthen logistics integration between two of the region's largest economies.
The UAE and Saudi Arabia have steadily expanded their economic and infrastructure ties in recent years, and this MoU marks the latest formal step in that process. No specific budget figures or implementation timelines were disclosed, though the agreement stresses that technical studies should begin promptly. Regional analysts see the deal as part of a broader Gulf effort to reduce the friction of national borders in moving goods and energy, an approach that could shape the cost and speed of trade across the region in the years ahead.