Saudi-UAE deal targets cross-border freight

Saudi Arabia and the UAE have signed a memorandum of understanding to strengthen rail links for freight transport and improve electricity trade, creating scope for smoother cross-border cargo movement and closer regional supply-chain links.

The memorandum was signed by Saudi Energy Minister Prince Abdulaziz bin Salman and UAE Investment Minister Mohamed Hassan Alsuwaidi.

The agreement sets out plans for cooperation on rail connectivity to support the two-way movement and transit of goods between the two countries. It also covers power grid interconnection, electricity exchange and sales, with technical, economic and environmental studies planned.

The rail link could improve freight movement between the neighbouring countries by strengthening connections for goods in transit and supporting wider trade across the Gulf. Better coordination on rail transport may also help logistics operators improve cargo flows and supply-chain planning.

The agreement also provides for coordination with other Gulf Cooperation Council (GCC) members to expand the GCC Interconnection Grid under the bloc’s existing framework. The wider measures are intended to improve energy-system efficiency and strengthen economic links across the region.