Elias Atallah: East German Blanket, Syrian Intel Linked to Gemayel Assassination

Elias Atallah in an interview with Asharq Al-Awsat’s Editor-in-Chief (Asharq Al-Awsat)
Elias Atallah in an interview with Asharq Al-Awsat’s Editor-in-Chief (Asharq Al-Awsat)
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Elias Atallah: East German Blanket, Syrian Intel Linked to Gemayel Assassination

Elias Atallah in an interview with Asharq Al-Awsat’s Editor-in-Chief (Asharq Al-Awsat)
Elias Atallah in an interview with Asharq Al-Awsat’s Editor-in-Chief (Asharq Al-Awsat)

The summer of 1982 left a deep mark on both Lebanon and the Palestinians. It was the summer when Israeli forces, for the first time in the conflict, occupied an Arab capital -Beirut. It was also when Yasser Arafat and his Palestine Liberation Organization fighters were forced into exile by the Israeli invasion.

That summer also saw the election of Bashir Gemayel as president of Lebanon, only to be assassinated before taking office. It was the season the Lebanese National Resistance Front (known by its Arabic acronym Jammoul) was born, only to be crushed by the regime of Syria’s Hafez al-Assad, who, together with Tehran, laid the foundations for Hezbollah and its “Islamic Resistance.”

The summer brought back memories of a conversation years earlier with Mohsen Ibrahim, head of Lebanon’s Communist Action Organization. “Assad believed we committed three crimes that merited the harshest punishment,” Ibrahim recalled. “First, with Kamal Jumblatt, we realized that Assad sought clients, not allies - and we paid the price. Second, with Arafat, we discovered that Assad wanted to seize control of the Palestinian decision-making process to secure his regime’s survival - and the punishment was severe. Third, we launched the Lebanese National Resistance Front and later refused to place it under Syrian control, which unleashed a brutal campaign of assassinations.”

Ibrahim said the full account of that “third crime” lay with Elias Atallah, a senior figure in Lebanon’s Communist Party and former commander of Jammoul’s armed operations.

At a time when debates over Hamas’s weapons in Gaza and Hezbollah’s arsenal in Lebanon are once again in the spotlight, Asharq Al-Awsat revisited the lessons and horrors of the summer of 1982.

Speaking to Atallah, Asharq Al-Awsat unearthed fresh details on Jammoul’s story, a string of security incidents and high-profile assassinations - from Gemayel and Rene Moawad to Rafik Hariri - as well as the shadow role of the Soviet KGB and the dramatic rescue of kidnapped Soviet diplomats after a tense meeting between one of its generals and the late cleric Mohammad Hussein Fadlallah.

Stage Set for War

By May 1982, speculation was mounting in Beirut that Israel was preparing a military operation to push Palestinian rockets out of range of its northern settlements. The prevailing view was that Prime Minister Menachem Begin’s government might advance some 40 kilometers into Lebanon, reaching the Awali River at the gateway to the south.

But Atallah, then a senior commander in the Lebanese Communist Party, believed such a move would fall short. He argued that Palestinian fighters and their allies could simply retreat to Beirut and preserve their strength. For that reason, he did not rule out the possibility of an Israeli drive into the capital itself to upend the balance of power.

Israel soon found its pretext. Sabri al-Banna, known as Abu Nidal, head of the splinter group Fatah-Revolutionary Council, attempted to assassinate Israel’s ambassador to Britain, Shlomo Argov. The following day, on June 4, Israeli warplanes bombed Beirut’s sports complex. Two days later, Defense Minister Ariel Sharon ordered Israeli ground forces into Lebanon.

In an interview with Asharq Al-Awsat, Atallah recounted the birth of Jammoul, its most prominent operations, and the wave of assassinations that struck the Communist Party after it defied Syrian President Hafez al-Assad’s demand to coordinate with Syrian intelligence and merge with Hezbollah.

From his military and security vantage point, Atallah also offered new details on a string of high-profile killings that targeted presidents and political leaders, the factional wars that engulfed Beirut before Syrian troops re-entered the city, and the final days Arafat spent in an underground shelter before departing Beirut. In that bunker, Atallah recalled, Arafat was joined by Lebanese Communist Party chief George Hawi - later himself among the victims of the “shared” assassination campaign that culminated in the killing of former Prime Minister Rafik al-Hariri and others.

Siege of Beirut: Maps and Decisions

On the day after Israel launched its ground invasion, four men stood over a battlefield map in one of 14 Palestinian operations rooms in Beirut: Arafat, his Iraqi ally General Hassan al-Naqib, Hawi, and Atallah.

Arafat, ruler in hand, repeatedly asked where the Israeli advance had reached. He had been assured the army would not push beyond 40 kilometers. But Atallah phoned contacts in his hometown of Ramliyeh, just north of the Awali River, who confirmed Israeli forces had already passed through, driving towards Beirut.

By then, Fatah units had retreated towards Jezzine and the Bekaa Valley. Atallah said the real shock was that Fatah’s chief of staff “turned out to be an Israeli agent.” From that moment, it was clear the decisive battle would be fought in Beirut. Outmatched on every front, Palestinian fighters and their Lebanese allies could not mount serious defenses against the Israeli army’s advance. Soon, West Beirut was encircled. The Communist Party joined the city’s defense, though Arafat and his Fatah movement played the leading role.

Atallah recalled Arafat as the true commander of Beirut’s defense. “He had extraordinary courage, bordering on disregard for his own safety,” he said. “His obsession was for the cause to win. His calculations were never personal. He managed the most difficult moments without flinching. He assigned me to coordinate defense lines with one of his officers. Another crucial figure was Khalil al-Wazir, or Abu Jihad, who spoke little but was highly effective, with stronger military expertise than Arafat.”

Atallah believes Arafat’s assassination was among Israel’s war aims, given his symbolic and practical weight. “He was the man who reawakened the Palestinian cause in 1965, almost as if he reinvented it,” he said. Despite being Israel’s top target, Arafat roamed the besieged city, inspecting frontline positions and lifting morale, defying the relentless Israeli bombardment of Beirut.

Atallah also recalled the so-called “Horse Racing Battle.” Communist Party fighters, he said, single-handedly fought off an Israeli attempt to break into Beirut through the racecourse area to cut off the Fakhani district, where Fatah had its headquarters. “We confirmed the Israelis were preparing to move from the museum district through the racecourse,” Atallah said. “I calculated that our RPG-7s couldn’t reach from Tayouneh to the military court near the museum, so we dug more than 30 individual pits along both sides of the road. When the Israelis advanced, we hit them from both flanks. They lost tanks, and a general leading the assault was killed. What struck me was that after retreating, they never left anything behind on the battlefield.”

From a fifth basement level in Marinian building near the American University Hospital, Atallah and Hawi directed operations. One day, Atallah spotted a familiar keffiyeh at the entrance - it was Arafat. His aide, Fathi, explained: “The old man will sleep here tonight.”

Arafat’s office had just been bombed, Fathi said, and in the chaos a bodyguard tried to assassinate him, but was killed by other protectors. From then on, Arafat spent his final ten days in Beirut shuttling between the bunker and the frontlines, alongside Hawi and Atallah, until his departure into exile.

Arafat and the Rivalries of his Allies

Amid the siege of Beirut, Arafat kept up his contacts, but it did not take him long to realize that no one was coming to his rescue. In one meeting, he and Fatah Central Committee member Hani al-Hassan visited the Soviet embassy. Ambassador Alexander Soldatov was blunt: Moscow would not threaten Israel or its American backers, nor send ships to evacuate the wounded.

“Leave Beirut,” Soldatov told him. When Arafat asked how, the envoy replied: “Leave even on American destroyers, so you won’t be taken in the net as prisoners.” Arafat shot back that “a commander with two bullets in his pistol does not fall captive,” but he understood the message.

As conditions ripened for a negotiated withdrawal, US envoy Philip Habib brokered a deal. Arafat had to secure the backing of the Palestinian factions. Elias Atallah, who knew their secret hideouts, sent messengers. He recalled that George Habash of the Popular Front and Nayef Hawatmeh of the Democratic Front tried to outbid Arafat politically, opposing the departure. Furious, Arafat told them they could stay behind if they wished. Both eventually agreed to leave.

The siege did nothing to soften Arafat’s animosity toward Syrian President Hafez al-Assad. Atallah was present when someone in the Marinian bunker floated the idea of retreating overland to Syria. “Arafat’s response was sharp and final,” he recalled. “He said: I will execute anyone who suggests such a thing. I consider Assad an enemy, like Israel - and worse. Mention Assad again and I will execute you.”

Atallah believed this deep mutual hatred later fueled the bloody battle in Tripoli, Lebanon’s northern capital, lamenting that the Communist Party, which he led militarily, had become entangled in the fight. “Arafat told Mohsen Ibrahim in Tunis that surviving Beirut doubled the hatred both Sharon and Assad had for him,” Atallah said.

Despite his loathing of Damascus, Arafat showed concern for Syrian units trapped in Beirut, supplying them with food and weapons, Atallah said. “Some soldiers didn’t even have shoes,” he recalled. “One Syrian commando unit fought bravely, captured two Israeli tanks in Khaldeh, then received orders from Damascus to hand them over to Nabih Berri’s Amal movement.”

On another occasion, after repeated Israeli shelling around the Soviet embassy, Atallah visited the compound. “I went to check on them and asked if they wanted to move to a safer place,” he said. “Soldatov replied: ‘Comrade, if this flag (pointing to the Soviet one) can’t protect me, nothing can.’ The strikes, he noted, hit the embassy’s garden, not the building itself.”

Another hot issue gripped Beirut that summer: the presidential race. Gemayel, commander of the Lebanese Forces militia and son of Kataeb Party founder Pierre Gemayel, announced his candidacy to succeed Elias Sarkis. Before the Israeli invasion, Gemayel’s election had seemed nearly impossible, given the hostility of most leftist and Muslim factions and his battles against Syrian troops in Beirut and Zahle. But the invasion upended Lebanon’s political balance, making his once unlikely candidacy possible.

Atallah also recalled regular visits from a Soviet KGB officer in Beirut, known by the codename “the Rabbit.” As the Communist Party’s military chief, head of security, and member of its political bureau, Atallah was a key point of contact.

‘The Rabbit’s’ Counsel - Soviet Pressure and Lebanon’s Turning Point

About a month into the Israeli invasion, a Soviet intelligence officer known by the nickname “the Rabbit” paid Atallah an unexpected visit and delivered a surprising message. “Why don’t you Lebanese back Gemayel for the presidency?” he asked bluntly, even though the battle for Beirut was far from over and Arafat’s exit had not been finalized.

Atallah said he sent Albert Mansour - later a minister - to test the question. When Mansour asked Gemayel how he would govern if elected, Gemayel unfolded a pre-drawn map and pointed to color-coded areas. “These Christians in these areas are all armed,” Atallah quoted him as saying. “These other, non-aligned areas are disarmed.”

“Atallah asked the Rabbit: ‘Are you telling me to elect a president like this?’” Atallah recalled. The Soviet officer replied only that “things change - now he is this, and shortly after taking power he becomes something else.” When Atallah pressed whether that view reflected Moscow’s official position, the visitor merely repeated: “I tell you elect Bashir. He is the best option in your circumstances.”

The exchange exposed a rift. The Rabbit left visibly upset after Atallah implied the conversation was over. Atallah told Hawi he would refuse further visits; Hawi later said that was not enough and demanded an apology from the Soviet officer, though he did not pursue the matter further.

By the second half of August, as negotiations on the evacuation of Arafat and PLO forces accelerated under US envoy Philip Habib, Lebanon’s presidential contest grew hotter. Opponents of Gemayel sought a way to stop his election: some proposed extending Elias Sarkis’s term, others floated a transitional presidency for Camille Chamoun. None of the alternatives held. Gemayel’s candidacy, once implausible given his militia record and the hostility of leftist and Muslim factions, surged in the reshaped balance of power created by the invasion.

Whispers spread among opposition parties that the only sure way to block Gemayel was to bomb the venue to prevent the parliamentary session. Anxiety mounted in the National Movement and among Islamist groups. Some speculated Arafat might back such a bid - a notion that had circulated earlier.

Those calculations were off the mark. Arafat, negotiating his departure with Habib, had strong political instincts and did not wish to sabotage a course that had drawn international acceptance. When Atallah, who favored disrupting the vote, asked Arafat whether he would support such a plan, Arafat’s answer was curt and absolute: “Not a single shot.” He repeated the phrase when pressed.

Atallah said Arafat warned sternly: “Do not play with this; you will make us look bad.” The Palestinian leader’s insistence was, Atallah added, unusually strict - comparable only to a prior episode during heavy fighting near the southern suburbs, when Arafat personally ordered an immediate halt to fire rather than risk confrontation with Syrian President Hafez al-Assad.

Gemayel was elected president, gaining traction across confessional lines. Atallah later reflected on “dark days to come” - a fate, he suggested, shaped not only by political shifts but by the intervention of intelligence services whose influence would mark Lebanon’s next chapter.

Deadly East German Blanket

On Sept. 14, 1982, a thunderous explosion ripped through the Kataeb Party headquarters in Beirut’s Ashrafieh district, killing president-elect Gemayel and shattering a political project before it began.

Elias Atallah recalled that word of Gemayel’s impending assassination had circulated hours earlier. “A northern worker in Lebanese security at the Masnaa border crossing whispered that Bashir would be killed,” he said. “Few paid attention, since the general impression was that Bashir was heavily protected, especially by Israel.”

The attack was carried out by Habib Chartouni, a member of the Syrian Social Nationalist Party, under the guidance of Nabil Alam, who, according to Atallah, maintained links with East German intelligence.

“The bomb that killed Bashir came from East Germany disguised as an ordinary sleeping bag,” Atallah said. “Explosives were hidden inside, powerful enough to destroy the building. A detonator – maybe just a pin – was enough to set it off. This was beyond Chartouni’s ability alone. I believe Syrian intelligence, which had ties with East Germany and other services, was involved.”

Asked if the armed wing he commanded had plotted Gemayel’s assassination, Atallah replied: “Never. I was opposed to assassinations. Even the attempt on General Michel Aoun at Baabda Palace had nothing to do with my unit.”

Gemayel’s death was followed swiftly by the Sabra and Shatila massacres, and Israeli forces stormed West Beirut. Atallah, now charged with overseeing the operations of the Lebanese National Resistance Front, found himself at the center of the campaign that – along with other factors – would eventually force Israeli troops out of the capital.



Bin Habrish to Asharq Al-Awsat: Hadhramaut on Threshold of New Era

Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)
Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)
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Bin Habrish to Asharq Al-Awsat: Hadhramaut on Threshold of New Era

Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)
Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut (Asharq Al-Awsat)

After nearly 500 days spent in the mountains and highlands, Sheikh Amr bin Habrish, First Deputy Governor of Hadhramaut and commander of the Hadhramaut Protection Forces, has returned to the provincial capital, Mukalla, declaring what he described as the beginning of a “new phase” that will shape a different future for Yemen’s largest eastern governorate.

In an interview with Asharq Al-Awsat from his residence overlooking the Arabian Sea, Bin Habrish said Hadhramaut is currently experiencing “a state of stability and reassurance,” which he attributed to the steadfastness of its people and to Saudi support and intervention that came “at the right time.”

He said the current ambition is to build a state based on institutions under which all citizens are united, while preserving Hadhramaut’s distinct character. Bin Habrish also affirmed his commitment to integrating the Hadhramaut Protection Forces into “fair” state institutions.

Addressing security concerns, he described terrorism as “manufactured” and said it has no social base in Hadhramaut. He accused external powers and local actors of exploiting it for their own agendas, while stressing readiness to confront terrorism in all its forms.

Bin Habrish offered his account of the recent handover of military camps led by the Nation’s Shield Forces, saying the achievements were made possible by the resistance of Hadhramaut’s people on their own land, and by Saudi support and what he called the Kingdom’s “honest and decisive” stance at a critical moment.

He said this outcome would not have been possible without the “genuine bond” between Hadhramaut’s society and Saudi Arabia, adding that this relationship has helped restore security and stability to Mukalla after what he described as unnecessary turmoil.

“We were not satisfied with the arrival of forces and the internal conflict and fighting that followed,” he said, adding that some parties felt emboldened and left no room for dialogue.

He accused the Southern Transitional Council of deploying its forces and “fully occupying the governorate,” stressing that Hadhramaut belongs to its people and that any mistake should have been addressed locally, not imposed by force. “We were compelled to resist,” he said, citing home raids and pursuits as “wrong and unjustified.”

Open Channels with Saudi Arabia

Bin Habrish credited Saudi Arabia’s leadership — King Salman bin Abdulaziz, Crown Prince Mohammed bin Salman, Defense Minister Prince Khalid bin Salman, along with the Special Committee and the Joint Forces Command — for Hadhramaut’s current stability.

He said coordination with the Kingdom takes place “at the highest levels,” with open channels and no barriers, praising Saudi intentions and expressing deep appreciation for its support.

A New Era

Bin Habrish said Hadhramaut is entering a new era rooted in its traditions of peace, wisdom, and culture. He reiterated calls for self-rule based on historical grounds, describing it as the minimum requirement for enabling Hadhramaut to build its institutions and deliver services.

He urged unity, mutual compromise, and prioritizing the governorate’s interests, saying: “We forgive and open a new page. We are not seeking revenge. What matters is that Hadhramaut remains at the center of decision-making. Without it, there can be no development.”


President of Madagascar to Asharq Al-Awsat: Three-Pillar Economic Plan to Revive the Country

President of Madagascar Michael Randrianirina (Presidency)
President of Madagascar Michael Randrianirina (Presidency)
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President of Madagascar to Asharq Al-Awsat: Three-Pillar Economic Plan to Revive the Country

President of Madagascar Michael Randrianirina (Presidency)
President of Madagascar Michael Randrianirina (Presidency)

President of Madagascar Michael Randrianirina said his country views Saudi Arabia as its “main partner” in the phase of “refoundation” and in building a new development model, revealing to Asharq Al-Awsat a three-pillar economic plan aimed at restoring political and institutional stability, activating structural sectors, and improving the business environment to attract investment, with a focus on cooperation in mining and natural resources, including rare minerals.

In his first interview with an Arab newspaper since assuming office in October, Randrianirina said in remarks delivered via Zoom from his presidential office that Madagascar “possesses real potential in energy, agriculture, mining, tourism, and human capital,” stressing that driving national revival requires consolidating institutional stability and building balanced partnerships with countries such as Saudi Arabia in order to translate potential into tangible outcomes for citizens and youth.

Three-Pillar Economic Plan

The president explained that his plan is based on three main pillars. The first focuses on restoring political and institutional stability through a clear transitional roadmap, the establishment of an executive body to manage and review projects, and the formation of a supporting committee to ensure an orderly and transparent transition.

The second pillar centers on investment in structural sectors, including energy, ports, digital transformation, health, and mining, in partnership with Saudi Arabia and other partners, with the aim of removing the main obstacles to economic revival.

The third pillar, he said, targets creating an attractive environment for investors by improving the business climate, strengthening public-private partnerships, activating special economic zones, and leveraging regional frameworks such as the African Continental Free Trade Area (AfCFTA) and the Southern African Development Community (SADC) to open broader African markets through Madagascar.

Strategic Partnership and “Investment-Ready” Projects

On plans to enhance economic, investment, and trade cooperation between Saudi Arabia and Madagascar, Randrianirina said his objective is to build a long-term strategic partnership within a clear institutional framework and through flagship projects with tangible impact for both countries.

He proposed the creation of a joint Madagascar–Saudi investment body, to be known as “OIMS,” to coordinate and finance projects in energy, ports, health, digital governance, mining, agriculture, and tourism. He noted that Madagascar is simultaneously preparing a package of investment-ready projects aligned with Saudi Vision 2030 and Africa’s regional integration, in order to provide organized and secure opportunities for Saudi capital and expertise.

Saudi Arabia as the “Main Partner”

Randrianirina emphasized that Madagascar considers Saudi Arabia a key partner in priority sectors. In energy and refining, he said the country plans to establish a national oil refinery, supply fuel directly from the Kingdom, and jointly develop heavy oil resources in western Madagascar.

In ports and logistics, he pointed to efforts to modernize and expand the ports of Toliara and Mahajanga to position Madagascar as a logistics and energy hub in the Indian Ocean.

Regarding digital transformation and secure governance, he said Madagascar aims to launch a secure national digital platform for public administration and security, drawing on Saudi experience.

He also highlighted mining and natural resources, including rare minerals, as a cornerstone of cooperation, with the goal of improving valuation and ensuring traceability of Malagasy gold and other mineral resources in a transparent and mutually beneficial manner. He further expressed interest in the health sector, proposing the establishment of a royal health complex in Antananarivo, followed by a gradual expansion of similar facilities in other regions.

Planned Visit to Riyadh

The President said Madagascar is working with Saudi authorities to arrange an official visit in the near future, with the date to be determined in coordination with the Kingdom.

He described the visit as an important opportunity to meet and engage with Crown Prince Mohammed bin Salman, noting that Vision 2030 has brought about a qualitative transformation in the Kingdom’s image and economic trajectory. He said Saudi Arabia has strengthened its role as a major player in economic modernization, energy diversification, digital transformation, and global investment, while maintaining its central role in the Arab and Islamic worlds.

He added that the reforms and major projects achieved under the vision are a source of inspiration for Madagascar’s refoundation efforts, expressing a desire to benefit from the Saudi experience in areas including energy, infrastructure, digital transformation, health, and natural resource development.

The president said he hopes the visit will include meetings with the Custodian of the Two Holy Mosques King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman, as well as sectoral meetings covering energy, ports, digital transformation, health, mining, defense and security, trade, culture, and sports, alongside discussions on establishing the joint investment body.

Historical Links with the Arab World

Randrianirina noted that Madagascar had historical links with the Arab world prior to the arrival of Western powers, explaining that Arab sailors, traders, and scholars reached its coasts and left their mark on certain languages, place names, and customs.

Three Major Challenges

The president acknowledged three main challenges facing his country: poverty and food insecurity, lack of infrastructure, and weak institutions. He said a large segment of the population still lives in poverty and that food security is not guaranteed in several regions, stressing that addressing these challenges requires investment in agriculture and rural infrastructure and the search for partners to support sustainable value chains that improve farmers’ incomes.

On infrastructure, he said the capacity of the energy and port sectors remains insufficient, hindering growth and trade, noting that upcoming discussions with Saudi Arabia focus on projects such as the refinery, heavy oil development, the ports of Toliara and Mahajanga, and digital infrastructure. He added that repeated crises have weakened institutions, and that his government is working to strengthen the rule of law, anti-corruption mechanisms, and public investment governance through independent oversight and transparent reporting to restore trust.

Combating Corruption

The President said financial corruption is a serious problem in Madagascar as it undermines public trust and diverts resources away from development. He explained that the anti-corruption strategy is based on three levels: establishing an executive body with clear procedures, independent audits, and periodic reporting; using digitalization to improve traceability and reduce misuse; and strengthening anti-corruption bodies while supporting judicial independence.

When asked about allegations of financial corruption linked to the previous leadership, he said his focus is on institutions rather than personal accusations, stressing that addressing any allegations falls under the jurisdiction of the competent judicial and oversight bodies, which must be protected from political interference and allowed to operate in accordance with the law and due process.

Duty to the Country and Its Youth

The president concluded by saying that he assumed office out of a sense of duty toward the country and its youth, noting that young people represent a significant demographic weight in Madagascar and are demanding change, dignity, and a better future through jobs, education, stability, and opportunities within their own country.

 


Microsoft President: Saudi Arabia is Moving from Exporting Oil to Exporting Artificial Intelligence

Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 
Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 
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Microsoft President: Saudi Arabia is Moving from Exporting Oil to Exporting Artificial Intelligence

Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 
Naim Yazbeck, President of Microsoft for the Middle East and Africa (Microsoft) 

As Saudi Arabia accelerates its national transformation under Vision 2030, the region’s technology landscape is undergoing a decisive shift. For the first time, “the region is not merely participating in a global transformation, it is clearly leading it,” said Naim Yazbeck, President of Microsoft for the Middle East and Africa, in an interview with Asharq Al-Awsat.

Yazbeck argued that Saudi Arabia now stands at the forefront of what he called “a historic turning point not seen in the past century,” defined by sovereign cloud infrastructure, artificial intelligence, and national innovation capabilities.

He noted that Saudi Arabia’s rapid progress is driven by clear political will, explaining that the state is not simply modernizing infrastructure, but views AI as a strategic pillar comparable to the historical role of oil. While oil underpinned the economy for decades, AI has emerged as the new resource on which the Kingdom is staking its economic future.

According to Yazbeck, the recent visit of Crown Prince and Prime Minister Mohammed bin Salman to the United States underscored this shift, with AI and advanced technologies taking center stage in discussions, reflecting Saudi Arabia’s intent to build a globally influential knowledge economy.

This direction marks the start of a new phase in which the Kingdom is no longer a consumer of imported AI technologies but a developer of local capabilities and a producer of exportable knowledge, strengthening technological sovereignty and laying the foundation for an innovation-driven economy.

A Distinctive Tech Market

Yazbeck stressed that the regional landscape, especially in Saudi Arabia, is witnessing an unprecedented shift. Gulf countries are not only deploying AI but also developing and exporting it. The Kingdom is building advanced infrastructure capable of running large-scale models and providing massive computing power, positioning it for the first time as a participant in global innovation rather than a mere technology importer.

He pointed to a common sentiment he encountered in recent meetings across Riyadh’s ministries, regulatory bodies, national institutions, and global companies: “Everyone wants to be ahead of AI, not behind it.” Ambition has translated into action through revised budgets, higher targets, and faster project timelines.

He added that Saudi institutions now demand the highest standards of data sovereignty, especially in sensitive financial, health, and education sectors. The regulatory environment is evolving rapidly; Saudi Arabia has modernized its cybersecurity, data governance, cloud, and AI frameworks faster than many countries worldwide, turning regulatory agility into a competitive asset.

Yazbeck emphasized that success is not measured by the number of AI projects but by their alignment with national priorities, productivity, healthcare, education, and cybersecurity, rather than superficial, publicity-driven initiatives.

The ‘Return on Investment’ Equation

According to the Microsoft official, building an AI-driven economy requires more than advanced data centers. It begins with long-term planning for energy production and the expansion of connectivity networks. He further said that running large models demands enormous electrical capacity and long-term stability, which the Kingdom is addressing through strategic investments in renewable energy and telecommunications.

Yazbeck said return on investment is a central question. Nationally, ROI is measured through economic growth, job creation, higher productivity, enhanced innovation, and stronger global standing. At the institutional level, tangible results are already emerging: with tools such as Copilot, employees are working faster and with higher quality, shedding routine tasks and redirecting time toward innovation. The next phase, he added, will unlock new business models, improved customer experiences, streamlined operations, and higher efficiency across sectors.

Sovereignty and Security

Digital sovereignty is now indispensable, Yazbeck said. Saudi Arabia requires cloud providers to meet the highest accreditation standards to host sensitive national systems, which are criteria Microsoft is working to fulfill ahead of launch. Once the new cloud regions in Dammam go live, they will become part of the Kingdom’s sovereign infrastructure, requiring maximum protection.

Microsoft invests billions annually in cybersecurity and has repelled unprecedented cyberattacks, an indicator of the threats national infrastructure faces. The company offers a suite of sovereign cloud solutions, data-classification tools, and hybrid options that allow flexible operation and expansion. Yazbeck noted that sovereignty is not a single concept but a spectrum that includes data protection, regulatory control, and local hosting all play critical roles.

Data: The Next Source of Advantage

Yazbeck identified data as the decisive factor in AI success. He warned that any model built on unclean data becomes a source of hallucinations. Thus, national strategy begins with assessing the readiness of Saudi Arabia’s data landscape.

He revealed that the Kingdom, working with SDAIA, the Ministry of Communications, and national companies, is constructing a vast, high-quality data ecosystem, laying the groundwork for competitive Arabic language models.

He also called for a robust framework for responsible AI, saying that speed alone is not enough. He stressed that safe and trustworthy use must be built from the start, noting that Microsoft is collaborating with national bodies to craft policies that prevent misuse, protect data, and ensure fairness and transparency.

Skills: A National Advantage

Human capability is the true engine of national power; Yazbeck underlined, pointing that infrastructure means little without talent to run and advance it. He stated that Saudi youth represent the Kingdom’s greatest competitive advantage.

Microsoft has trained more than one million Saudis over the past two years through programs with SDAIA, the Ministry of Communications, the Ministry of Education, and the MISK Foundation. Its joint AI Academy has graduated thousands of students from over 40 universities, and it has launched broad programs to train teachers on AI tools in education.