The objective of this paper is to assess the impact of interconnecting Oman and United Arab Emirates (UAE) through the existing 220kV, 46.7km double circuit transmission line rated 762MVA for each circuit. A model is developed to represent both systems of Oman and UAE based on the EUROSTAG© software. Load flow and contingency studies are presented to evaluate the compliance of the interconnected system for security criteria N and N-1. Calculations are applied to two operating conditions (peak and minimum load) and for three energy exchange cases: no exchange and maximum exchanges in both directions. Short circuit studies are presented to show that breaking capacity of existing circuit breakers is not exceeded following the interconnection of the two systems, especially at the interconnector and neighboring substations. Transient stability studies are presented to demonstrate the intrinsic response of the interconnected system following the occurrence of large disturbances such as three-phase faults followed by the loss of faulted elements and the simultaneous loss of the largest generating units of both systems. The maximum power transfer limits between the two countries are determined through P/V curve calculations for import and export during peak and off-peak load conditions for N and N-1 contingency situations. These theoretical limits are significantly larger than the effective exchange capability. They give an indication of the margin with respect to the voltage collapse and loss of synchronism risk due to an excessive power exchange across the interconnector. The results indicate that both Oman and UAE systems could be operated satisfactorily with the existing 220kV interconnector.