The UAE and Saudi Arabia have signed a memorandum of understanding, marking a new step towards expanding rail links, facilitating freight transport and integrating the two countries’ infrastructure.

The agreement was signed in Riyadh by Mohamed Hassan Alsuwaidi, the UAE Minister of Investment, and Prince Abdulaziz bin Salman bin Abdulaziz, Saudi Arabia’s Minister of Energy.

The agreement aims to strengthen rail connectivity between the UAE and Saudi Arabia, facilitate the movement of goods and commercial cargo, and expand infrastructure and energy cooperation in support of the two countries’ shared economic interests.

Under the memorandum, the two countries will also explore opportunities to enhance electricity grid interconnection and exchange and trade electrical power.

The agreement includes technical, economic and environmental feasibility studies to assess infrastructure connectivity opportunities between the two countries.

As part of the cooperation, the UAE and Saudi Arabia will also coordinate with other Gulf Cooperation Council member states to develop the regional electricity interconnection network and further integrate energy infrastructure.

The memorandum remains at the review and planning stage, with no details yet announced on proposed rail routes, project costs or the start of construction.