Economic and technical considerations are usually the underlying factors for interconnecting neighbouring electric power systems. Among some of the benefits that may be realised are plant capacity savings, interchange due to diversity, emergency power interchange, spinning reserve savings. However, planning of interconnections is a demanding task and must cover a wide range of technical aspects. This article presents the advantages, requirements and problems arising from the interconnection of electric power systems in the Arab world. It also presents the planning principles for grid system, procedure for power system development planning, technical aspects of interconnection, and possibilities of increasing interconnection capacity by limited means. The results of studies investigating the feasibility of interconnecting the power networks of the six countries which form the Gulf Co-operation Council (GCC) are presented. The article also shows existing and future interconnections of power systems in the Arab world.