Emaar EC restructures $266bn loan with PIF

RIYADH: Abu Dhabi has signed a multi-year deal with Microsoft and Core42 to build a sovereign cloud system, supporting its push to become the world’s first AI-powered government. 

The deal — inked by the Department of Government Enablement, Microsoft, and Core42, a subsidiary of G42 — supports the emirate’s plan to automate 100 percent of government operations by 2027, backed by a 13 billion dirham ($3.54 billion) investment in digital infrastructure, according to Emirates News Agency, also known as WAM. 

This strategy includes over 200 AI-powered solutions aimed at enhancing government service delivery, boosting productivity and operational efficiency, and contributing to environmental sustainability. 

The agreement was signed by Ahmed Tamim Al-Kuttab, chairman of the Department of Government Enablement; Satya Nadella, chairman and CEO of Microsoft; and Peng Xiao, CEO of G42 Group. 

“By integrating Microsoft’s cloud technologies, G42’s AI expertise, and the government’s strategic vision, we are contributing to the development of a powerful platform that redefines government services,” Al-Kuttab said. 

He added that technology has the potential to revolutionize how governments interact with people, making services more efficient, engaging, and impactful. 

Nadella emphasized that AI is pushing the boundaries of what governments can achieve and how they serve their communities worldwide. 

“Abu Dhabi is leading the way in this field, and through our partnership with the Government Empowerment Department and G42, we are setting new benchmarks for AI adoption in the public sector. We support Abu Dhabi’s vision to become the world’s first AI-powered government,” Nadella said, according to WAM.

The initiative aims to increase transparency and security for investors and businesses while fostering a more innovative, flexible, and creative work environment for government employees in Abu Dhabi. 

This also includes the rollout of TAMM 3.0, a revamped government services platform that has cut customer visits by 90 percent and enabled 73 percent of transactions to be completed instantly. 

Xiao emphasized that the agreement marks a significant step toward realizing Abu Dhabi’s ambition of becoming the world’s first fully AI-powered government. 

“Our public sovereign cloud system, powered by Azure and enhanced with the sovereign control platform ‘Insight,’ enables government entities to maintain data sovereignty while benefiting from advanced innovation,” Xiao said. 

He continued: “This partnership is more than just a technological advancement — it represents our commitment to building a strong, future-ready digital infrastructure that supports AI modernization across various government entities in Abu Dhabi and sets a new global standard for innovation.” 

Sheikh Tahnoun bin Zayed Al-Nahyan, Abu Dhabi’s deputy ruler and chairman of the Artificial Intelligence and Advanced Technology Council, also attended the signing alongside Khaldoon Khalifa Al-Mubarak, chairman of the Executive Affairs Authority.

RIYADH: Saudi Arabia has raised SR2.64 billion ($704 million) through sukuk issuances in March as the Kingdom continues to explore opportunities in debt markets to accelerate economic diversification efforts. 

The latest riyal-denominated offering follows an SR3.07 billion issuance in February and SR3.72 billion in January. 

Saudi Arabia also raised SR11.59 billion in December and SR3.41 billion in November. 

The Kingdom has been playing a pivotal role in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan.

According to a statement by Saudi Arabia’s National Debt Management Center, the issuance for March was divided into four tranches, with the first one valued at SR364 million and set to mature in 2027. 

The second tranche has a value of SR316 million, due in 2029, while the third, at SR1.46 billion, is set to mature in 2032.

The fourth tranche worth SR500 million will expire in 2039.

Sukuk, a Shariah-compliant financing instrument, allows investors to hold partial ownership of an issuer’s assets while adhering to Islamic finance principles. 

Saudi Arabia’s debt market has seen significant growth in recent years, attracting investors’ interest in debt instruments amid rising interest rates.

In March, a report released by Kuwait Financial Center, also known as Markaz, said that Saudi-based primary issuances of bonds and sukuk led the Gulf Cooperation Council region in 2024, raising $79.5 billion through 79 issuances.

Markaz added that the Kingdom contributed to 53.7 percent of the overall primary debt issuances in the GCC region in 2024.

In February, Saudi Arabia also raised €2.25 billion ($2.36 billion) through a euro-denominated bond sale, including its first green tranche, as part of its Global Medium-Term Note Issuance Program.

Affirming the growth of the market of such Islamic bonds, S&P Global, in January, said that global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets, including Saudi Arabia and Indonesia. 

In December, another report released by Kamco Invest projected that the Kingdom is expected to witness the greatest share of bond and sukuk maturities in the GCC, reaching $168 billion from 2025 to 2029. 

According to Kamco Invest, Saudi Arabia’s maturities will be led by government issuances that are projected to hit $110.2 billion during the period.