RIYADH, June 1 (Xinhua) -- Saudi Arabia and Egypt signed Saturday a 1.59-billion-U.S. dollar Memorandum of Understanding ( MoU) on electrical interconnection and exchange of electric power between the two countries, according to Saudi Press Agency.

Saudi Arabia's Minister of Water and Electricity Engineer, Abdullah bin Abdul-Rahman al-Hossein, signed the agreement with Egyptian Minister of Electricity and Energy, Ahmed Mustafa Imam, during a ceremony in the Saudi capital of Riyadh.

Al-Hossein said the MoU is among the most important projects in the electrical grid systems in the Arab countries, adding that it will be able to link 14 countries in the Gulf region and Arab world.