Pan-Arab Electricity Market
Towards an Integrated Pan-Arab Grid.
The Pan–Arab Electricity Market vision, principles, and five-stage development plan are based on a signed MOU by Arab Ministers of Electricity/Energy in 2017 which ensures that PAEM evolves organically towards a fully integrated Pan-Arab grid and a wholesale competitive market by 2038.
  • 1.
    Developing regional governance structures and institutions.
  • 2.
    Enabling regional electricity trade.
  • 3.
    Identify regional investments & innovative financing solutions.
Who We Are

Following the signing of the MOU by Arab Ministers of Electricity/Energy in 2017, the League of Arab States, as a regional champion, has launched a multidisciplinary and integrative scope of support to create the building blocks of a Pan-Arab Electricity Market for shared technical economical, and financial benefits. The League of Arab States worked closely with the World Bank and the Arab Fund for Social and Economic Development, as the trusted developing partners, to push this important agenda forward.

Learn More
The Pan-Arab Electricity Grid – in a snapshot

Existing grids in the Pan-Arab are mainly sub-regional and fragmented (as of 2018)

Future 2035 Grid Vision is Integrated as Identified by the World Bank VOTRI Report

Development Challenges
Low utilization

5-7% av. annual utilization of existing cross-border lines

US $71 billion

In total system cost savings

if existing cross-border lines utilized by 36% in 2020-2035.


Average exported gas subsidy

US $11.7 billion
annually in 2020-2035

Countries need to develop and agree on trade pricing approaches to promote “commercial trade”.

Market Liquidity

Limited Market liquidity is hindering utilization of existing lines

US $23 billion

untapped value of trade opportunities when no transparency & trade market is limited to SOEs.

Development And Investment Opportunities
25 cross-border transmission investments identified by the World Bank VOTRI Report to realize commercial trade potential and create a fully integrated Pan-Arab grid by 2038.

10 new interconnections

for reliable bulk electricity trade and secure Pan-Arab grids.

15 reinforcement projects

for maximum trade potential among connected countries.

18 GW

Additional cross-border capacity needed


Estimated investment costs required



per dollar invested expected by 2035

192 GW

Enabled renewable energy integration