GCCIA Plans $1.3 Billion Regional Expansion by 2027

The Gulf Cooperation Council Interconnection Authority (GCCIA) is planning a substantial investment of up to $1.3 billion in enhancing its regional electricity grid network by 2027. This expansion project, scheduled between 2025 and 2027, is expected to be entirely debt-funded through local development banks in Kuwait, Qatar, and the UAE. The credit metrics of GCCIA are anticipated to be strained due to this increased financial commitment, as reported by S&P Global Ratings. The project aims to secure a robust backbone expansion for the regional grid, potentially raising investments up to $1.5 billion if fully funded. While the GCCIA expects to incur a negative free operating cash flow of about $500 million in 2025, it plans to stabilize to cash flow neutrality by 2027. The net debt is projected to reach its peak at approximately $800 million-$850 million during 2026-2027 before declining. S&P has assigned an A credit rating to the GCCIA, citing likely support from GCC member countries, especially Saudi Arabia, in case of financial distress, ensuring electricity supply security throughout the region. Over the past 15 years, GCCIA has effectively supported national electricity networks in over 2,000 emergency cases.