By: OrePulse

Saudi Arabia and the United Arab Emirates signed a memorandum of understanding on October 8 in Riyadh that sets out general principles for rail connectivity between the two countries, according to the UAE's state news agency, WAM.

The memorandum was signed by UAE Minister of Investment Mohamed Hassan Alsuwaidi and Saudi Minister of Energy Prince Abdulaziz bin Salman, WAM reported. WAM's report did not identify any summit, forum or other occasion at which the signing took place, beyond stating that it occurred in Riyadh on October 8.

WAM said the agreement is intended to improve cross-border trade and transport and to support supply-chain efficiency between the two countries through closer rail links. The memorandum provides for technical and economic studies into rail connectivity, but WAM did not name the government bodies that will carry out the studies, nor did it give a timeline for when they would be completed.

The agreement sets out general principles for cooperation rather than a detailed project plan. It does not specify which routes a future rail link would follow, what such a project would cost, or when cross-border freight rail services between Saudi Arabia and the UAE might begin. WAM's report also did not say whether the planned rail connectivity would include passenger service alongside freight; the agency's stated aim for the rail provisions referred only to trade, transport and supply-chain efficiency.

In addition to rail connectivity, the memorandum also covers electricity interconnection and power trading between the two countries, WAM reported. The agency did not provide further detail on the scope of the planned electricity cooperation, how it would be implemented, or any timeline for that part of the agreement.

Both the rail and electricity provisions were included in the single memorandum signed by the two ministers on October 8 in the Saudi capital. WAM described the document as covering general principles for cooperation in both areas, with technical and economic studies to follow on the rail component.

WAM did not name any specific state or private companies that would be involved in carrying out either the rail connectivity studies or the electricity interconnection and power-trading plans. The agency's report did not indicate when further announcements on either element of the agreement might follow.