https://www.arabianbusiness.com/ :The UAE and Saudi Arabia have signed a new agreement that will significantly enhance rail connectivity between the two countries.

Minister of Energy, Industry and Mineral Resources, Prince Abdulaziz bin Salman bin Abdulaziz, met with UAE Minister of Investment, Mohamed Hassan Alsuwadi in Riyadh.

The pair signed an agreement that will see the two regional economic heavyweights strengthen their strategic cooperation.

The new deal brokered between Riyadh and Abu Dhabi will see the two nations expand their partnership in relation to power grid interconnection, electricity exchange and sale, and rail connectivity.

The primary objective of the new MoU is to maximise mutual economic benefits in these areas.

Under the terms and conditions of the agreement, the two countries will agree on the general principles governing power grid interconnection and the exchange and sale of electricity.

In addition to this, the UAE and Saudi Arabia will also conduct related technical, economic and environmental studies, and coordinate with Gulf Cooperation Council member states on expanding the GCC Interconnection Grid in accordance with the GCC General Agreement for Grid Interconnection.

These efforts are intended to enhance the efficiency of energy systems and strengthen regional integration.

Supply chain
One of the key components of the new deal struck is the enhancement and overhaul of the rail connectivity linking the UAE and Saudi Arabia.

One of the most evident outcomes of the ongoing war between the US and Iran, was the fragility of supply chains.

This latest deal aims to not only strengthen the supply chain, but also make it more effective,

The deal provides agreement for the general principles governing rail connectivity between the two countries for the two-way transport and transit of goods and freight.

That will only serve to further strengthen logistics integration, improve supply chain efficiency, and support economic development and regional integration.