A memorandum of understanding signed in Riyadh sets out the general principles for linking the two countries’ railway networks and studying two-way transport and transit of goods; it also includes electricity interconnection and energy exchange

Riyadh | BETH

Prince Abdulaziz bin Salman bin Abdulaziz, Saudi Minister of Energy, and Mohamed Hassan Alsuwaidi, UAE Minister of Investment, signed a memorandum of understanding in Riyadh on October 8, 2026, to strengthen strategic cooperation between the two countries in rail connectivity, infrastructure, and energy.

The memorandum sets out the general principles for rail connectivity between Saudi Arabia and the UAE, along with the necessary technical and economic studies, paving the way for two-way transport and transit of goods, improving supply-chain efficiency, and facilitating cross-border trade and transportation.

It also includes cooperation on electricity interconnection and the exchange and sale of electricity, conducting technical, economic, and environmental feasibility studies, as well as coordination on expanding the GCC electricity interconnection system.

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The significance of the agreement is that it does not yet announce the construction of a direct rail line. Rather, it moves the Saudi-Emirati rail connection concept into the stage of general principles and technical and economic studies, opening the way for greater logistics integration between two of the Gulf’s largest transport and trade networks.