The comprehensive Arab electricity interconnection projects, which form the backbone of the Arab Common Electricity Market, have received significant attention at the highest levels, including Arab summits. They are among the most important Arab integration initiatives, in which great hopes are placed for the economic and social advancement of Arab citizens. Interest in these projects began with the establishment of the Arab Ministerial Council for Electricity, which made electricity interconnection a central focus of its work. The effort later expanded into a tripartite initiative involving the Council, the Arab Fund for Economic and Social Development, and the World Bank, with full support from the ministries of electricity and energy in Arab countries.
The Arab electricity interconnection is regarded as the most important means of achieving these objectives. Interconnecting the electricity networks of Arab countries, along with the subsequent development of suitable infrastructure, enables fully integrated electricity trade operations, bringing substantial economic and social benefits to all participating market members, in a competitive framework that safeguards the rights of all parties.
The principles and objectives of establishing a common Arab electricity market are to secure optimal short- and long-term outcomes for electricity supply on a regional Arab basis, rather than solely a national one. This includes enabling electricity trade and exchange between buyers and sellers, not only within their national markets but also across all member states' markets, based on fair grid access and competition. It also entails encouraging public and private investment in large-scale electricity generation and transmission projects of regional significance, which will inevitably create employment opportunities and contribute to sustainable development in the Arab region.
In this context, ten Arab countries signed two agreements for the Arab Common Electricity Market (the General Agreement and the Market Agreement) on the sidelines of the fifteenth session of the Arab Ministerial Council for Electricity on 2 December 2024. The State of Qatar has also deposited its official ratification of the General Agreement for the Arab Common Electricity Market with the General Secretariat of the League of Arab States.
It is noteworthy that the two agreements for the Arab Common Electricity Market will enter into force once seven Arab countries ratify the General Agreement for the Market. The Council's Secretariat is actively working with member states to complete the ratification process and deposit the agreements with the General Secretariat.
