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Davos President to Asharq Al-Awsat: Extreme Poverty Levels Rising for First Time in Two Decades

Børge Brende warns of the continuation of a fractured world and calls for a global compact.

Brende speaks at Building Sustainable Markets at The World Economic Forum. (WEF)
Brende speaks at Building Sustainable Markets at The World Economic Forum. (WEF)
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Davos President to Asharq Al-Awsat: Extreme Poverty Levels Rising for First Time in Two Decades

Brende speaks at Building Sustainable Markets at The World Economic Forum. (WEF)
Brende speaks at Building Sustainable Markets at The World Economic Forum. (WEF)

The continuation of a fractured world, lack of international collaboration and rising inequalities within and between countries will impede efforts to fight the pandemic and face the climate change crisis, warned the president of the World Economic Forum in an interview with Asharq Al-Awsat.

“We need to make sure that the recovery (from the Covid-19 pandemic) will be sustained, and that it will be inclusive,” Børge Brende insisted on the eve of the “Davos Agenda” week.

Despite this year’s forum being held virtually as countries grapple with a raging coronavirus pandemic, world leaders are expected to convene on Monday and throughout the week under the theme “A Crucial Year to Rebuild Trust.”

“We aim at rebuilding trust at the beginning of the year, because trust is the basis for progress”, Brende explained.

A global compact
The president of the World Economic Forum warned that “if there is a continuation of a fractured world, where leaders don't collaborate, we will have a hard time finding solutions to climate change, and to fight the pandemic.”

He is however hopeful that “the US re-entering the Paris protocol agreement, as well as the World Health Organization will send a clear signal that the largest economy in the world will also use international bodies and multilateral agreements as the basis for cooperation.” He added that it “will also hopefully break some impulses in other areas, like the World Trade Organization for example, where the appellate body needs to be filled with judges.”

That said, “I don't think we're out of the woods yet”, Brende noted, as “there will definitely be much more competition between the big economies. We can also see clear disagreements in some areas. But I do think however that there will be areas where we definitely see clearer will to find common solutions.”

He highlighted the need for a global compact to face common challenges, saying: “Look for example at Covid-19. We know that the pandemic doesn’t know any borders: Covid anywhere is Covid everywhere. We know that climate change doesn't know any borders either. So we need a global compact.”

In addition, Brende reflected on the importance of getting the economy back on track, and said: “If we're going to go into pre-Covid levels of global GDP, we will need to start investing in each other’s countries through Foreign direct investment, that has gone down dramatically in the last one and a half year.”

He added: “We also know that the global value chains and trade are struggling to get back to their pre-Covid levels. And we know that trade has been an engine of growth, and has lifted millions of people out of extreme poverty in the last three decades.”

Rising levels of extreme poverty
“In the last one and a half year, close to a hundred million people have become in the category of extreme poverty,” Brende warned. He continued: “For the first time in two decades, we have seen an increase in extreme poverty in the world, and not a decrease. Covid-19 is hitting poor, developing and emerging countries hard.”

“We know that we were faced with growing inequalities before the pandemic, not only between countries but also inside industrialized countries,” he added.

“But these inequalities seem more pronounced today, and we can see that people who have received good education and have good jobs have been able to work from home, and have adjusted to the situation. Whereas some who work in the grocery store or a hotel or on a cruise liner, or might not even not have a job” have been hit harder, he went on to say.

Brende, therefore, stressed the importance of helping the Covax initiative succeed, saying: “Fortunately, they have more than 2 billion doses of the vaccine now available. But that is not enough, and we have to do more.”

He also pointed out that, once growth is “back on track, we the need to address not only climate change that is hitting poor countries the most, but also the worrying digital divide and the fact that 3.6 billion people don't even have access to the internet.”

“If we don't fix this digital divide,” he warned, “we unfortunately will see growing inequalities in the years to come.”

Stimulus packages
Brende said that developed nations are doing “whatever it takes” to confront the economic downturn caused by the coronavirus. “There are 12 trillion US dollars in stimulus packages out there. But we also see that the EU has pivoted from consumption to investments in the green deal and the green transformation, but also to the digital transformation. They are doing whatever it takes. The US and China are also doing whatever it takes.”

But many emerging economies and developing countries, he added, “can only do whatever they have, and they don't have that same fiscal muscle as developed countries.”

Brende continued that “these are all very worrisome signals that we have to look at very seriously. and that's why we have to get the economy back on track, but the growth needs to be much more job creating and inclusive and sustainable.”

Strengthening globalization
In his comment on the return of China’s president Xi Jinping to Davos this year, albeit virtually, Brende said: “We are very pleased to have China's president back. President Xi’s speech in 2017 is known for a speech where China underlined the importance of multilateralism and globalism.”

He added that “since 1990, when globalization really took off, the world population has increased from 5 billion to 7 billion people. And at the same time, the amount of people living in extreme poverty has decreased from 40 percent to 10 percent.” Globalization, he concluded, “has had many successes, but we should not be complacent.”

In the WEF’s risk report this year, “we found that one of the big challenges moving forward is addressing inequalities. We cannot have economies where wealth is not trickling down. The legitimacy of the social market economy is based on people having the chance to live on decent salaries.”

A Fourth Industrial Revolution Center in Riyadh
Saudi Crown Prince Mohammed bin Salman bin Abdulaziz participated, on January 13, in a strategic dialogue session moderated by Brende and convened with over 160 influential international leaders and business leaders, representing 28 sectors and 36 countries.

“We had a very well attended country strategy meeting with the Kingdom of Saudi Arabia. I had the honor to moderate the session with Crown Prince Mohammed bin Salman, as he laid out his plan for continuing reforms. We also had announced that we will open in Riyadh a center for the Fourth Industrial Revolution, which is a WEF center for technologies, like Artificial Intelligence, and big data, and also the internet of things,” explained Brende.

He added that it was very interesting to follow all the questions from the CEOs, ranging from energy transformation, to reforms regarding women empowerment, to investment opportunities for foreigners.

The strategic dialogue session came after the WEF postponed a planned regional meeting that was due to take place in Riyadh last spring.

“There was huge interest for that crucial meeting in Saudi Arabia. So we decided that at least for the time being, we will need to offer the opportunity to those CEOs that were signed up to meet virtually with the Crown Prince in this dialogue,” said Brende.

He added: “We unfortunately had to postpone all our original activities. We were supposed to have meetings in Addis Ababa and Jakarta and in Riyadh. All these three meeting are postponed. And we will just have to see how things develop with the pandemic in the year to come.”

Public-private cooperation
“There was a saying by a world leader who said that there can be decades without any news, and a decade (worth of news) within a week. And I feel that we have been through a decade in a year,” said Brende when asked about the many changes the WEF is trying to adapt to.

He explained: “We had to replace all of our physical meetings with 300 digital meetings this last year, but we have also launched a lot of new initiatives. And I think the strength of the World Economic Forum is really that we are now the international organization for public-private cooperation. And I think that a lot of the challenges that we are facing today, be it climate change or the pandemic or getting growth back on track, require the need to mobilize more collaboration between the public and private sectors.”

He added: “The public sector has now used a lot of its fiscal muscles in coming through this crisis, and we have seen that governmental debt has increased quite dramatically. So in the year to come, I think we also have to mobilize resources in the private sector to compliment what the governments are doing.”

“The WEF has also challenged companies. We created a Covid platform in March last year, and launched 41 initiatives from private companies related to speeding up the vaccinations,” he continued. “We also launched the ESGs (Environmental, social and corporate governance) where 120 companies committed to the environmental, social and governmental standards.”

“ESGs are far above what governmental regulations are, and touch on the environment, climate governance, fighting corruption, but also creating decent jobs, re-skilling and upscaling, and this is what stakeholder capitalism is about,” he explained.

“So we will see a World Economic Forum that is much more focused on impact and action and also that contributes to reaching the sustainable development goals. We will also seriously address issues like the digital divide in the world,” he concluded.

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Interviews

Obeidat to Asharq Al-Awsat: Gaddafi Tried to Assassinate King Hussein with Missile Given to Wadie Haddad

King Hussein and Moammar Gaddafi holding talks on the sidelines of an Arab summit in Cairo in 1970 (AFP).
King Hussein and Moammar Gaddafi holding talks on the sidelines of an Arab summit in Cairo in 1970 (AFP).
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Obeidat to Asharq Al-Awsat: Gaddafi Tried to Assassinate King Hussein with Missile Given to Wadie Haddad

King Hussein and Moammar Gaddafi holding talks on the sidelines of an Arab summit in Cairo in 1970 (AFP).
King Hussein and Moammar Gaddafi holding talks on the sidelines of an Arab summit in Cairo in 1970 (AFP).

In the second installment of his interview with Asharq Al-Awsat, former Jordanian prime minister and intelligence chief Ahmad Obeidat recounts details of a missile plot to assassinate King Hussein, which he says was backed by Muammar Gaddafi and carried out through operatives linked to Wadie Haddad, head of the external operations arm of the Popular Front for the Liberation of Palestine.

Obeidat, who also served as head of intelligence and as minister of interior and defense, revisits the confrontation between Israeli forces, the Jordanian army, and Palestinian guerrillas (fedayeen) in the border town of Karameh in March 1968, asserting that the Jordanian army “decided the battle,” but suffered a “moral defeat amid the fedayeen’s claims of victory.”

Obeidat died earlier this month. The interview was recorded before the “Al-Aqsa Flood,” whose aftermath delayed its publication. Below is the text of the second installment.
 

King Hussein inspects an Israeli tank left behind by occupying forces during the Battle of Karameh (Getty)

“Battle of Karameh”

Obeidat calls Karameh “a pivotal point of utmost importance,” especially for an army still reeling from the 1967 defeat and its withdrawal from the West Bank.

“The army lived the bitterness of that defeat,” he says. “It felt a moral, national, and pan-Arab responsibility.”

Karameh, he argues, offered a chance to restore the army’s fighting morale and reclaim some of its lost dignity.

“It was the army that settled the battle,” Obeidat says.

He credits Jordanian forces with thwarting Israeli attempts to build crossing bridges, destroying their vehicles on Jordanian soil and forcing, for the first time in Israel’s history, a request for a ceasefire. “The late King Hussein refused,” he adds.

Israel, he says, did not acknowledge a fifth of its casualties. Helicopters were evacuating the wounded who were “dripping with blood.”

He singles out artillery observation officers who advanced to the closest possible positions, relaying precise coordinates even as they effectively marked their own locations for shelling.

“The Jordanian soldier would identify his position near the Israeli army to be shelled,” he says, describing a willingness to die in order to restore dignity after the 1967 setback.

He says the declaration of “armed struggle” effectively erased the army’s role, presenting Palestinian fedayeen as the victors over Israel. “They monopolized the victory and ignored the army’s role entirely,” Obeidat says. “We emerged with a moral defeat in the face of their claims.”

He alleges that hundreds of millions of dollars in donations collected afterward, much of it going to Fatah, did not reach the Palestinian people but went to organizations and their leaders.

When the army entered Amman in September 1970, Obeidat says, it aimed to end what he describes as chaos: armed displays, roadblocks, arrests of soldiers on leave and interference in courts.

"When the army entered and began expelling the fedayeen from Amman, it swept through everything in its path. Even my own home, which I had recently rented after my abduction incident and which was close to the army’s command headquarters, was entered by the Jordanian army to search for fedayeen, while my family was inside the house at the time of the raid. My wife told them that her husband was an intelligence officer, but the Jordanian soldier replied, “Don’t lie.”

Obeidat says they did not leave the house until she contacted him, at which point he assigned one of his officers, the commander of an intelligence company, to speak with the army.

"Only then did they leave the house. The point is that the army swept areas without distinguishing between Jordanian and Palestinian; it wanted only to restore control over security. All of this forced me to send my family to my parents’ home in Irbid, in the north of the Kingdom."

He later describes what he calls a “state within a state,” extending from the Jordan Valley to Amman, after armed groups asserted authority over courts, roads, and civilian life.

On Syria’s intervention, Obeidat says Syrian forces entered northern Jordan flying Palestine Liberation Organization flags.

He later learned the decision was political, taken by the Baath Party, and that then-Defense Minister Hafez al-Assad complied reluctantly before Syrian tanks withdrew.

Iraq, he says, did not intervene. Obeidat affirms that he was told by Iraqi officials that neither the Iraqi state nor its forces intended to participate in any operation aimed at ending the Hashemite monarchy in Jordan.

According to one account, Iraqi leaders did not want to shoulder the political and diplomatic burden of the Palestinian issue or risk an uncalculated adventure.

He recounts another account, which he says he cannot adopt, according to which the operations command in the army was handled by a Pakistani figure. Under this account, Zia ul-Haq was receiving operational communications and sending messages that caused confusion among Iraqi and other forces, leading them to believe they would confront powerful strike units, prompting them to remain in a state of alert rather than engage.

He also recalls a meeting in which Palestinian figures, including Abu Iyad, reproached Iraqi President Ahmed Hassan al-Bakr. Al-Bakr replied: “We are a state with one life. If we make a fundamental mistake, we end. You are like cats with seven lives.”

As director of intelligence, Obeidat says he dealt directly with operations attributed to Haddad.

Between 1975 and 1977, he says, a missile was sent to Jordan with a group led by a Jordanian, Brik al-Hadid, affiliated with the PFLP. The target was King Hussein’s aircraft.

“The intention was to strike the plane, with Gaddafi’s knowledge and approval,” Obeidat says.

Jordanian intelligence monitored the group from the outset and later arrested its members. The king’s aircraft departed Marka military airport as scheduled but flew in the opposite direction to its planned route as a precaution, using jamming devices against any incoming missiles.

When confronted by Mudar Badran, then head of the Royal Court, Gaddafi denied knowledge. “I have no information,” Obeidat quotes him as saying.

Obeidat describes the aircraft hijackings orchestrated by Haddad as “the straw that broke the camel’s back,” contributing to the army’s intervention.

He says Jordanian intelligence had infiltrated Fatah and monitored its leaders, including Abu Iyad and Abu Yusuf al-Najjar.

In mid-1972, intelligence learned that Abu Dawood and a group were planning to enter Jordan from Baghdad to seize the Jordanian cabinet during a session and hold ministers hostage in exchange for the release of detained Fatah members.

The group crossed in three Mercedes cars, dressed in traditional Arab attire, with weapons concealed inside the seats and forged passports in hand. They were arrested at the border after a thorough search.

Obeidat rejects claims by Abu Iyad that Abu Dawood was tortured, insisting that “not a single hair on his head was touched,” and says Abu Dawood confessed only after realizing the operation had been fully uncovered.

Later, King Hussein met Abu Dawood’s parents, who pleaded for clemency. The king read the full confession and then met Abu Dawood himself. He ultimately ordered his release, honoring a promise he had made to Abu Dawood’s parents.

In Obeidat’s view, Abu Dawood was affected by the king’s treatment of his parents and “did not pose any future threat to Jordan.”

Obeidat describes a direct relationship between King Hussein and the General Intelligence Department.

The king met with officers regularly, not only to hear briefings but also to hear their personal views. 

Obeidat says he would submit reports to the prime minister and also meet with the king. When addressing the king, however, it was sometimes necessary to elaborate verbally on certain issues so that such information would not circulate among staff. 

When he was asked to present a security briefing before the king, the late King Hussein would summon Crown Prince Hassan. The king’s advisers would also attend, along with senior army commanders, the public security leadership, the head of the Royal Court, and the prime minister. The briefing of the security report would include an explanation of the security situation and any external or internal challenges.

 

Interviews

Obeidat to Asharq Al-Awsat: Mystery Sniper Killed Wasfi Tal

Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)
Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)
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Obeidat to Asharq Al-Awsat: Mystery Sniper Killed Wasfi Tal

Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)
Ahmad Obeidat during the interview with Asharq Al-Awsat's Editor-in-Chief Ghassan Charbel in Amman. (Asharq Al-Awsat)

Former Jordanian Prime Minister Ahmad Obeidat, who died earlier this month, was both a key player and a witness to sensitive chapters in his country’s history.

Obeidat began his career in the 1970s as an assistant director of intelligence, later serving as head of the General Intelligence Department until 1982. At the height of the Palestinian-Jordanian confrontation, he was abducted by the Popular Front for the Liberation of Palestine before the events of September 1970.

He also served for two years as interior minister before King Hussein appointed him prime minister in early 1984, a post he held until April 1985, concurrently serving as defense minister.

For more than 15 years, Obeidat remained at the center of decision-making. He later took on roles drawing on his legal background, from chairing the Royal Commission that drafted the National Charter in the early 1990s to serving in human rights and judicial positions, most recently as head of the board of trustees of the National Center for Human Rights until 2008.

Weeks before Oct. 7, 2023, the day of the Al-Aqsa Flood Operation, Asharq Al-Awsat met Obeidat in Amman. The interview had been scheduled for publication in October 2023, but the major developments that followed led to its postponement, particularly as Obeidat addressed contentious issues, notably Jordanian-Palestinian relations.

In the first part of the interview, Obeidat revisits his formative years, when his political and professional journey began as a law student in Baghdad on the eve of the July 14, 1958 revolution, before returning to Iraq after the fall of the monarchy amid sweeping regional transformations.

The account moves to his early professional life in Jordan, from a brief stint in legal practice to joining the Public Security Directorate, then serving in the Political Investigations Office, which formed the nucleus of organized intelligence work. It concludes with a detailed narrative of the establishment of the General Intelligence Department in 1964, its early structure and founding members, at a time when the Jordanian state was rebuilding its institutions in an intensely turbulent region.

Asked where he was when the 1958 revolution broke out in Iraq, Obeidat said he had completed his first year in law studies and returned to Jordan for the summer break.

“While I was in Irbid, news arrived of the July 14 revolution in Iraq that overthrew the monarchy. After the summer break ended, I went back to Baghdad, where a republican government under Abdul Karim Qassem had taken power,” he recalled.

The return was not easy. “We faced difficulties on the road. The border between Jordan and Iraq was nearly closed, so we had to return via Damascus and then through desert routes to Baghdad. It was an exhausting journey,” he added.

Obeidat left Baghdad in 1961 after completing his final exams. “On the last day of exams in the fourth year, I went home, packed and returned to Jordan the same day. The border between Baghdad and Amman had reopened.”

Among his contemporaries at law school was Saddam Hussein, who studied in the evening section. Obeidat said he saw him only once by chance. “He was with others, one of whom later became a governor,” he revealed.

He returned to Baghdad again in 1983 as Jordan’s interior minister to attend a conference of Arab interior ministers, more than two decades after graduating. There, he met his Iraqi counterpart, Saadoun Shaker. “It was an ordinary relationship,” Obeidat said, describing the ties as largely ceremonial.

From customs to intelligence

After returning to Jordan in 1961, Obeidat initially considered practicing law. But limited opportunities in Irbid and his family’s financial constraints led him to seek public employment.

He was appointed to the Customs Department in Amman, where he worked for several months before joining the Public Security Directorate in April 1962 as a first lieutenant following three months of training at the police academy.

At the time, there was no separate intelligence agency. Public Security included a branch handling general investigations. Soon after, the Political Investigations Office was formed, staffed by legal officers from the army and Public Security, including Mudar Badran and Adeeb Tahaoub from military justice, alongside Obeidat and Tariq Alaaeddin from Public Security.

The office handled cases referred by security and official bodies, including military intelligence and the Royal Court. After reviewing its work, the late King Hussein ordered the establishment of a legally grounded intelligence body. The General Intelligence Law was issued in 1964, formally creating the department, explained Obeidat.

Mohammad Rasoul Al-Kilani became its first director, followed by Mudar Badran, then Nadhir Rashid. Al-Kilani briefly returned before Obeidat assumed the post, succeeded later by Tariq Alaaeddin.

The shock of 1967

Recalling the 1967 war, Obeidat described it as “a defeat, not a setback. A military, political, psychological, and social defeat in every sense.”

He said there was no institutional intelligence view on Jordan’s participation. “The political opinion of a figure of Wasfi Tal’s stature was that entering the 1967 war was a mistake. He was not in office, but he remained close to the king and influential,” said Obeidat.

According to Obeidat, King Hussein believed Israel would occupy the West Bank whether Jordan participated or not.

“Participation was a gamble that might succeed or fail. The catastrophe was discovering that the Egyptian air force had been destroyed within half an hour,” he added.

Despite the bitterness, he said: “We did not fear for the regime, but we sought to contain public anger and absorb the shock.”

September and the assassination of Wasfi Tal

Obeidat first met Yasser Arafat after the events of September 1970. He confirmed that Arafat left Amman with an official Arab delegation to attend the Cairo summit and returned immediately afterward.

He recalled being informed mid-flight of the death of Egyptian President Gamal Abdel Nasser. “King Hussein was deeply affected.”

On the assassination of Prime Minister Wasfi Tal in Cairo, Obeidat said the gunmen who confronted Tal at the hotel entrance were not responsible for the fatal shot. “The fatal bullet came from behind, from a sniper in another unseen location. To this day, the sniper has not been identified,” he added.

He rejected the notion that Tal had been reckless. “Wasfi was not a gambler. He had a distinct political project,” he stressed.

Obeidat said the Black September Organization accused Tal of ordering the expulsion of fedayeen from forested areas in Jerash and Ajloun. He denied that Tal was directly responsible, saying the clashes began after fedayeen attacked a police station and killed officers, prompting a spontaneous army response.

Abduction without interrogation

Before September 1970, Obeidat was abducted by the Popular Front for the Liberation of Palestine while serving as assistant intelligence director.

Armed vehicles stopped his car as he was leaving his home in Jabal Al-Taj with his family. He and his brother-in-law were taken to the Wehdat camp. “We were treated politely. We drank tea. No one asked me a single question,” he recalled.

After several hours, he was driven to another house in Amman and later returned home. The next morning, members of Fatah took him briefly to one of their offices, only to release him on foot without explanation.

“Not a single question was asked,” Obeidat said. “It was bewildering.”

He resumed his duties after ensuring his family’s safety. “At the time, intelligence, like any official institution, was threatened and targeted,” he said, reflecting on one of the most volatile periods in Jordan’s modern history.

Interviews

Microsoft Saudi Head Affirms Kingdom Entering AI Execution Phase

Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)
Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)
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Microsoft Saudi Head Affirms Kingdom Entering AI Execution Phase

Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)
Saudi Arabia shifts from AI pilots to live deployment in key sectors (Shutterstock)

Riyadh’s hosting of the Microsoft AI Tour this week delivered a headline with concrete weight: customers will be able to run cloud workloads from a local Azure data center region starting in the fourth quarter of 2026.

The announcement was more than a technical update. It marked a shift in posture. Saudi Arabia is no longer testing artificial intelligence at the margins. It is moving decisively into execution, where infrastructure, governance, skills development, and enterprise adoption align in a single direction.

For Turki Badhris, president of Microsoft Saudi Arabia, the timing reflects years of groundwork rather than a sudden push.

“Confirming that customers will be able to run cloud workloads from the Azure data center region in the fourth quarter of 2026 gives organizations clarity and confidence as they plan their digital and AI journeys,” Badhris told Asharq Al-Awsat on the sidelines of the event.

“Clarity and confidence” may sound procedural, but they are strategic variables. Government entities and large corporations do not scale AI based solely on pilot projects.

They move when they are assured that local infrastructure is available, regulatory requirements are aligned, and long-term operational continuity is secured. The announcement of the new Azure region signals that the infrastructure layer is no longer a plan, but a scheduled commitment nearing implementation.

From pilots to production

Saudi Arabia’s AI story has unfolded in phases. The first focused on expanding digital infrastructure, developing regulatory frameworks, and strengthening cloud readiness. That phase built capacity. The current phase centers on activation and use.

Badhris said the conversation has already shifted. “We are working closely across the Kingdom with government entities, enterprises, and partners to support readiness, from data modernization and governance to skills development so that customers can move from experimentation to production with confidence.”

The distinction is fundamental. Pilots test potential. Production environments reshape workflows.

Companies such as Qiddiya Investment Company and ACWA Power illustrate that transition. Rather than treating AI as isolated pilot initiatives, these organizations are embedding it into daily operations.

ACWA Power is using Azure AI services and the Intelligent Data Platform to optimize energy and water operations globally, with a strong focus on sustainability and resource efficiency through predictive maintenance and AI-driven optimization.

Qiddiya has expanded its use of Microsoft 365 Copilot to enable employees to summarize communications, analyze data, and interact with dashboards across hundreds of assets and contractors.

AI is no longer operating at the margins of the enterprise. It is becoming part of the operating core, a sign of institutional maturity. The technology is shifting from showcase tool to productivity engine.

Infrastructure as strategic signal

The Azure data center region in eastern Saudi Arabia offers advantages that go beyond lower latency. It strengthens data residency, supports compliance requirements, and reinforces digital sovereignty frameworks.

In highly regulated sectors such as finance, health care, energy, and government services, alignment with regulatory requirements is not optional; it is essential.

Badhris described the milestone as part of a long-term commitment. “This achievement represents an important milestone in our long-term commitment to enable real and scalable impact for the public and private sectors in the Kingdom,” he said.

The emphasis on scalable impact reflects a more profound understanding: infrastructure does not create value on its own, but enables the conditions for value creation. Saudi Arabia is treating AI as core economic infrastructure, comparable to energy or transport networks, and is using it to form the foundation for productivity gains.

Governance as accelerator

Globally, AI regulation is often seen as a constraint. In the Saudi case, governance appears embedded in the acceleration strategy. Adoption in sensitive sectors requires clear trust frameworks. Compliance cannot be an afterthought; it must be built into design.

Aligning cloud services with national digital sovereignty requirements reduces friction at scale. When organizations trust that compliance is integrated into the platform itself, expansion decisions move faster. In that sense, governance becomes an enabler.

The invisible constraint

While generative AI dominates headlines, the larger institutional challenge often lies in data architecture. Fragmented systems, organizational silos, and the absence of unified governance can hinder scaling.

Saudi Arabia's strategy focuses on data modernization as a foundation. A structured and integrated data environment is a prerequisite for effective AI use. Without it, AI remains superficial.

Another global challenge is the skills gap. Saudi Arabia has committed to training three million people by 2030. The focus extends beyond awareness to practical application. Transformation cannot succeed without human capital capable of integrating AI into workflows.

Badhris underscored that skills development is part of a broader readiness ecosystem. Competitiveness in the AI era, he said, is measured not only by model capability but by the workforce’s ability to deploy it.

Sector transformation as economic strategy

The Riyadh AI Tour highlighted sector use cases in energy, giga projects, and government services. These are not peripheral applications but pillars of Vision 2030. AI’s role in optimizing energy management supports sustainability. In major projects, it enhances execution efficiency. In government services, it improves the citizen experience.

AI here is not a standalone industry but a horizontal productivity driver.

Positioning in the global landscape

Global AI leadership is typically measured across four pillars: compute capacity, governance, ecosystem integration, and skills readiness. Saudi Arabia is moving to align these elements simultaneously.

The new Azure region provides computing. Regulatory frameworks strengthen trust. Partnerships support ecosystem integration. Training programs raise skills readiness.

Saudi Arabia is entering a decisive stage in its AI trajectory. Infrastructure is confirmed. Enterprise use cases are expanding. Governance is embedded. Skills are advancing.

Badhris said the announcement gives institutions “clarity and confidence” to plan their journey. That clarity may mark the difference between ambition and execution. In that sense, the Microsoft tour in Riyadh signaled that infrastructure is no longer the objective, but the platform on which transformation is built.