Muscat: Reinforcing its firm commitment to supporting strategic initiatives with long-term economic and social impact, Sohar International has announced the signing of a landmark USD 500 million financing agreement with the Gulf Cooperation Council Interconnection Authority (GCCIA). The funding will support the Oman-GCC Electrical Interconnection Project, a major infrastructure undertaking aimed at enhancing regional energy security and sustainability.

The agreement was signed in the presence of His Excellency Eng. Mohsin bin Hamad Al Hadhrami, Undersecretary of the Ministry and Chairman of the Board of Directors at GCCIA, along with distinguished board members and executive leadership from GCCIA. The ceremony took place at Kempinski Hotel Muscat on 11 September 2025. Signing on behalf of the Authority was His Excellency 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 the Gulf Cooperation Council Interconnection Authority (GCCIA) and Sohar International, followed by a short documentary highlighting the strategic importance of the direct interconnection project between the GCC grid and the Sultanate of 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 530 kilometers. 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 project will provide a transfer capacity of up to 1,600 MW, strengthening supply reliability, supporting industrial growth, and expanding cross-border electricity trade in the region.

Commenting on the occasion, His Excellency Eng. Mohsin bin Hamad Al Hadhrami, Undersecretary of the Ministry of Energy and Minerals and Chairman of the GCCIA Board, stated: “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.”

His Excellency Eng. Ahmed Ali Al-Ebrahim, CEO of GCCIA, further emphasized the significance of the initiative: “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 optimize resource utilization, 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: “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 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.

Through this strategic transaction, Sohar International reaffirms its pivotal role in enabling vital infrastructure projects that contribute to economic diversification and long-term sustainability. The bank remains steadfast in its mission to be a strategic partner in the Sultanate’s economic transformation, driving investments that elevate service reliability, energy resilience, and regional cooperation.