RIYADH: Saudi Arabia and the UAE agreed on Thursday to strengthen cooperation on power grid interconnection and rail connectivity, as they seek to deepen regional integration and improve logistics and energy efficiency.

The agreement was signed in a memorandum of understanding by the Saudi energy minister, Prince Abdulaziz bin Salman, and UAE’s investment minister, Mohammed Alsuwaidi. It covers cooperation on power grid interconnection, electricity exchange and sales, and rail connectivity, with the aim of maximizing mutual economic benefits, the Saudi Energy Ministry said.

Under the agreement, the Kingdom and the UAE will also coordinate with other Gulf Cooperation Council member states to expand the wider GCC Interconnection Grid, in line with the council’s General Agreement for Grid Interconnection. The aim is to improve the efficiency of energy systems and strengthen regional integration, the ministry said.

The deal also sets out the general principles governing rail connectivity between Saudi Arabia and the UAE, covering the two-way transportation and transit of goods and freight.

The rail link is expected to strengthen logistics integration, improve the efficiency of supply chains, and support economic development and regional integration, the ministry added.