Sohar International provides $500mn financing for Oman-GCC electricity link

15/09/2025 04:47 AST

Sohar International has announced the signing of a landmark $500mn financing agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA). The funding will support the Oman-GCC Electrical Interconnection Project, a major infrastructure initiative aimed at enhancing regional energy security and sustainability.

The agreement was signed in the presence of H E Eng Mohsin bin Hamad al Hadhrami, Undersecretary of the Ministry of Energy and Minerals and Chairman of the Board of Directors at GCCIA, along with distinguished board members and executive leadership from GCCIA. The signing ceremony took place at the Kempinski Hotel Muscat on Thursday.

Signing on behalf of GCCIA was Eng Ahmed Ali al-Ebrahim, CEO of GCCIA, while Sohar International was represented by its CEO, Abdulwahid bin Mohammed al Murshidi.

The financing marks a new phase in the implementation of this strategic project, which seeks to boost energy reliability, enhance grid efficiency, and advance the integration of regional power systems. The event commenced with official remarks delivered by representatives from both GCCIA and Sohar International, followed by a short documentary highlighting the strategic importance of the direct interconnection project between the GCC grid and Oman.

This transformative project entails the construction of two 400kV transmission lines linking Oman's new Ibri station to GCCIA's Al-Sila station in the UAE, covering a total distance of 530km. It also includes state-of-the-art substations in Ibri and Al-Bainouna, equipped with modern control, protection, and communication systems, in addition to a dynamic compensator station to enhance grid stability and efficiency.

Once operational, the Oman-GCC Electrical Interconnection Project will provide a transfer capacity of up to 1,600MW, strengthening supply reliability, supporting industrial growth, and expanding cross-border electricity trade in the region.

Commenting on the occasion, H E Hadhrami said, "This project represents a strategic milestone in the pursuit of deeper regional energy integration. It reflects the shared vision of GCC leadership to build a more resilient and interconnected power infrastructure that aligns with sustainable development goals. The Oman-GCC interconnection is not merely a technical achievement - it is a manifestation of collective ambition to shape a more sustainable, secure, and collaborative energy future."

GCCIA's Ebrahim further emphasised the significance of the initiative. He said, "The direct interconnection between Oman and the GCC grid lies at the heart of our strategic roadmap to create a dynamic and unified regional energy market. This project will optimise resource utilisation, support growing electricity demand, and improve energy efficiency and reliability. It also establishes a foundation for future integration of renewable energy sources, making it a key enabler of regional energy transition."

Abdulwahid bin Mohammed al Murshidi, CEO of Sohar International, reaffirmed the bank's role as a catalyst for national and regional development. He said, "Sohar International's financing of this transformative infrastructure project underscores our ongoing commitment to supporting initiatives that advance Oman Vision 2040 and foster regional economic integration. This interconnection is not only critical for enhancing energy security and reducing carbon emissions, but it also aligns with the strategic goals of enabling renewable energy deployment and unlocking cross-border energy trade."

The Oman-GCC Electrical Interconnection Project reflects the continued momentum of public-private partnerships in delivering critical infrastructure. The timeline set forth demonstrates the collective commitment of all stakeholders to accelerate execution and ensure operational readiness of the supporting infrastructure. Beyond its technical scope, the project is a compelling example of how visionary policy and institutional financing can jointly drive inclusive growth, job creation, and environmental sustainability.

Muscat Daily