The Kuwait Fund for Arab Economic Development has signed a KD200,000 ($647,000) grant agreement with the GCC Interconnection Authority (GCCIA) to finance a feasibility study on extending the Gulf power grid to electricity networks outside the GCC.

The agreement was signed on 3 September by Ahmed Bin Ali Al‑Ibrahim, CEO of the GCCIA, and Kuwait Fund acting director general Rashid Al‑Bader.

The study will assess opportunities to expand the GCC power interconnection system to neighbouring countries. It will examine their electricity requirements and the technical and economic feasibility of connecting their national grids to the Gulf network.

The Kuwait Fund did not identify the countries or potential interconnection routes. However, it is understood that the study will identify potential phases for future expansion, determine priority projects and assess the most appropriate interconnection options based on technical and economic criteria.

It will cover the proposed project’s main components, costs, implementation arrangements and expected timeframe. The study will also assess the potential economic and social benefits for GCC member states and connected countries, as well as how the GCC network would operate alongside neighbouring national grids.

A preliminary assessment of the project’s potential environmental and social impacts will also be carried out, together with proposed mitigation measures.

The Kuwait Fund has previously provided three loans worth a combined KD78m ($252m) to GCCIA to support expansion of the GCC power interconnection system and its connection to southern Iraq’s electricity grid.

In August 2025, the fund announced two loans worth KD70m ($224m) for the expansion of the Gulf Power Interconnection Project. The financing included support for the Al‑Wafra 400kV substation and infrastructure connecting Kuwait’s grid with Iraq.

The Al‑Wafra substation facilitates electricity exchanges and enables Kuwait to access surplus power available through the GCC interconnection system.