Fontenrose to Asharq Al-Awsat: We Expect More Iranian Attacks, We Will Retaliate with Force

Four Iran Guards vessels are seen next to the guided-missile destroyer USS Paul Hamilton in the Gulf, April 15, 2020. (Reuters)
Four Iran Guards vessels are seen next to the guided-missile destroyer USS Paul Hamilton in the Gulf, April 15, 2020. (Reuters)
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Fontenrose to Asharq Al-Awsat: We Expect More Iranian Attacks, We Will Retaliate with Force

Four Iran Guards vessels are seen next to the guided-missile destroyer USS Paul Hamilton in the Gulf, April 15, 2020. (Reuters)
Four Iran Guards vessels are seen next to the guided-missile destroyer USS Paul Hamilton in the Gulf, April 15, 2020. (Reuters)

Kirsten Fontenrose is the director of the Scowcroft Middle East Security Initiative at the Atlantic Council. A graduate of the Harvard Business School, in 2018 she served as senior director for the Gulf at the National Security Council, leading the development of US policy toward the Gulf Cooperation Council countries, Yemen, Egypt, and Jordan. Prior to that, she served for years at the Defense Department, with her work always focusing on the Middle East. She is well-known to decision-makers in the Arab Gulf and closely watches Iran’s actions, whether inside Iran or beyond its borders.

In an interview to Asharq Al-Awsat, Fontenrose stressed the United States’ commitment to its Gulf partners and addressed Iran’s threats to the region and Washington’s policy in countering them. She warned that if Iran attempted to attack American forces in Iraq “one more time”, then it will be met with a “very strong” retaliation, meaning the Iraqi Hezbollah will be “wiped off the map” and Iranian Revolutionary Guards naval bases will be targeted. Below is the interview:

Does the United States, specifically President Donald Trump’s administration, still consider the Arab Gulf countries partners and allies?

Of course, we have seen how the US withdrew from long conflicts, such as the one in northeastern Syria. The forces were pulled out because they were needed elsewhere and because we are living during a time of major rivalries. For years, we used to perceive terrorism as the real danger, but not anymore. The US therefore, needed to reposition itself. In fact, what we would like to know is whether some Gulf countries were still committed with us or not, because all of our pullouts were linked to Gulf security. We have seen how some Gulf countries are seeking to purchase the S-400 missile system from Russia and are establishing relations with China and assessing ties with Huawei.

Bahrain, for example, listened to our advice in early 2018 when we told them that 5G and Huawei were Chinese means for gathering intelligence, under commercial guises. Bahrain realized that. China, however, is threatening American security, so what side of the equation is more committed to the relationship? Everyone claimed that the US pulled out of northeastern Syria because President Trump will not allow rockets to rain down on our army in Iraq, but the truth is, we believe that Gulf states must be more committed with us.

But the Gulf is important for American national security…

We can discuss this. Gulf countries are our partners and we trust them. We want the partnership to continue. At one point, these countries were the only ones providing oil in the world. They were then necessary for American national security. I am not saying they are not important now, but the relationship leans less towards economy and more towards partnership. We want these countries to be our partners in fighting terrorism and extremism and in stabilizing the economic markets. There are many things we want them to be partners with us in. We share with them their vision of the global system. It doesn’t matter that they have a different system of rule or religions, but we are looking at where the world is headed. We need them as partners, and they need us. We have drawn in Europe and Japan into this circle, and sometimes India. It is a partnership over common interests, more so than the fact that the Gulf is important geo-strategically for US national security.

Khamenei ordered the rehabilitation of houses on islands belonging to the United Arab Emirates and occupied by Iran. The Revolutionary Guards even spoke of building residential compounds and two airports. How do you interpret this? Should the Gulf countries prepare for more hostile acts?

Yes, I believe so. They should definitely be prepared because Iran has no intention of backing down since it has declared goals, which is forcing the US out of the region. This means pressuring Gulf countries to sever relations with Washington, meaning Iran wants to have its presence felt anywhere it can.

In Iraq, it pledged to allow the formation of an Iraqi government because it wants international attention away from it and its hands are a bit tied after the attack on American forces in Iraq. It is therefore looking beyond Iraq, for example, the Arabian Sea. Let’s go to the Greater Tunb and Lesser Tunb and Abu Moussa islands. It is trying to do a lot. It wants to demonstrate that with Khamenei in quarantine – because several officials have contracted the coronavirus – that it is not weak or that nothing can distract it from its expansionist goals.

Some Iranian officials are trying to rally the people, claiming that dangers are constantly lurking around them. They take advantage of that to threaten America and Sunni regimes. This is why the Iranian regime tries to keep these threats alive. If the situation calms down, then it will be difficult to rally the people around it. They keep on making threats to enemies to provoke reactions to later claim: “See, they are threatening us. They want to topple us and so, we must remain united.”

This is how they function and we should expect more. We have also been very clear recently and Iran knows full well what America is thinking about now: If Iran attempts to attack American presence in Iraq one more time, the response will be very strong. It will not just target logistic positions as it did in the past, because that has proven ineffective in deterring Iran. If they try to mobilize their groups or strike American forces in Iraq, then America’s response will be much harsher. It could mean wiping the Iraqi Hezbollah off the map or attacking Revolutionary Guards naval bases. Escalation will definitely happen. I believe that Iran knows that America is considering these options and it does not want to risk it. That is why it is looking beyond Iraq and see where else it can pursue its provocations, while still avoiding escalation.

It wants to remain on the edge…

Exactly. Iranian officials believe that the whole world is preoccupied with the virus and will not notice its activities, even though they know that the international community is watching Iraq. They are therefore, moving outside of Iraq by targeting small areas beyond the border. They are waiting for a reaction. They think that if the world is watching and turned a blind eye, then it can go ahead with another operation. However, they recently realized that Washington will not allow that. The Iranians are standing in the way of our relations with Iraq and they want to drag it into a war for them. We will never allow that from now on. A strong strike is in store and the Iranians must realize that. It appears that they are.

How can the Gulf countries prepare for that?

There are two ways to get ready: First, they must make sure that the international community is watching, because Iran will not act if it knew it will be condemned internationally. One of the reasons why it has continued its attacks was because Europe did not take a strong stance against it. Gulf countries must make sure that Europe is closely watching developments, the US as well. Gulf countries must realize that the US will be by their side. Unfortunately, some Gulf countries have opened secret channels with Tehran in pursuit of their own interests. I do not like what is happening, because from an American perspective it seems that they want America to remain in the region to protect them as they receive attacks from Iran. Also, some Gulf countries have struck bilateral agreements with Iran to protect their interests, but it is essential that they reach non-aggression pacts with Iran.

Do you think Iran would respect a non-aggression pact?

Maybe they will. Last fall, Iran proposed a comprehensive agreement as the UN General Assembly drew near. The deal, however, was like Jared Kushner’s peace plan, no one wanted to read it.

It did have some good ideas. I read Iran’s plan as someone who adopts a hardline approach against it. I saw some positive things in it, but also saw Iran’s desire for America to leave the region so that it would emerge as the main player. The parts on non-aggression pacts are good ideas, but they were not groundbreaking. A non-aggression agreement had been struck in the past between Iran and Saudi Arabia.

This was during the rule of Hashemi Rafsanjani?

Yes, this can be achieved as nothing is impossible. But we know that Iran has many goals in the Gulf. If it starts with a non-aggression agreement, then it would have achieved its goals. If it wants America out of the region, then it should start with deals with the Gulf, meaning America would no longer be needed in the region for protection.

But how can the Gulf trust Iran when it wants to impose its hegemony?

That’s true. There is no need for an alliance if the threat still stands. Moreover, how can it accept an alliance while the international community is watching and while American troops are there and the Fifth Fleet is deployed in Bahrain?

President Trump has ordered the US Navy to retaliate to any harassment by Revolutionary Guards boats.

All he did was voice out loud orders that the naval command implicitly knows. They always have the right to defend themselves in the Gulf. The president said nothing new. Defense Secretary Mark Esper recently signed a plan that says if Iran provoked us, we will respond immediately. This means that naval commanders do not need to turn to Washington for approval. The president’s statement was aimed at Iran.

Will naval commanders respond?

Yes, but the commanders are experienced and they will not be perturbed. If Iran continued in carrying out the same operations it is used to, to assert its presence, the commanders will not respond. Such operations are only significant to Iran.

Like the story of the elephant and the ant…

Exactly. We have seen in the past how the Revolutionary Guards planted mines around an oil tanker in the Gulf. If the commanders notice an Iranian vessel loaded with explosives, then they will definitely blow it up. If they see a speedboat racing towards a ship, they will definitely strike. But they will not respond to acts committed by an “ant”.

We noticed that Iran launched its first ever military satellite shortly after Trump made his threats. Does this mean that all American pressure has so far failed, meaning before the new policy you just mentioned?

No, I don’t believe the launch was a response to the president’s threats. A satellite cannot be launched within a week.

But it could have delayed a launch…

Yes, or Iran could have launched it without fanfare. I think it launched it so that we would know and for the world to know. It was a show of force…. They are definitely trying to build their capabilities to reach farther grounds, not America, of course. It was a warning that it harbors enmity towards our partners and allies.

What of the mullah regime in Iran that backs proxies in Lebanon, Iraq, Syria and Yemen? We have recently seen Germany blacklist Hezbollah.

The designation of Hezbollah as a terrorist group is a result of Germany’s observation of the suffering of Lebanon and the Lebanese expatriates in Germany. US Ambassador to Germany Richard Grenell was on the verge of being appointed national security advisor after John Bolton’s resignation. He is a hawk and was insisting on a German stance. The Germans realized that he is an influential figure and not just a diplomatic envoy.

I also know that the Lebanese diaspora in the US is very influential. They are all highly educated, politically active and respected. This is why Washington is keen on Lebanon, even if it is a small country. True, there is Hezbollah and General Michel Aoun is president, but Lebanon is not in a good place and is close to becoming a failed state. The people are suffering and the Europeans, the Germans, specifically, have stated to sense that they cannot abandon the Lebanese people. I am very proud with the German position.

How can Lebanon be saved from Hezbollah?

Good question. I believe Lebanon needs an international work group. There is an elite, but no prominent actors. No one knows how to run a country. All of those who protested wanted change, but no one knows how to implement it. And Hezbollah is taking advantage of this. The international community must therefore, focus on helping Lebanon combat Hezbollah’s actions and back the role of civil political parties and hold elections. The Lebanese army must be trained to be capable of defending itself. The police must also be trained. Everyone wants to support Lebanon. People are now interested in Lebanon, but the White House is not looking at Lebanon. American officials are wrong when they say that “as long as Hezbollah is in control, then we will not talk to the Lebanese.”

Will the US allow the International Monetary Fund to offer loans to Lebanon?

Pressure will be exerted on Washington to save Lebanon and it will allow the loans. It will not allow the IMF to offer Iran any loan. In 2018, the White House was interested in Lebanon, but then the elections happened and Hezbollah emerged victorious, and so it turned its back on the country.

Back to the future of the mullah regime…

I am worried. We used to believe that the elderly mullahs will go in peace and a new era in Iran will emerge. I don’t think that will happen. The generation that will succeed Khamenei will be just like him or even more extreme. There is Khamenei’s son, Mojtaba. He is a hardliner and a close friend of the head of Iranian intelligence, Ali Shamkhani. They are the ones running everything.

Since Qassem Soleimani’s killing, Khamenei’s group has been confined in quarantine, but he is still in control. There is Mojtaba and Soleimani’s successor, Esmail Ghaani, he is not as charismatic, but he is a logistic planner. There is also Zeinab, Soleimani’s daughter, who is used to attract people and appeal to the proxies and hardliners.

A struggle for power will ensue when Khamenei is gone. Some figures who are older and calmer than this circle have been marginalized. They believe that one of them should succeed Khamenei, but then there is his ambitious son, who will say that he holds the money and he was his father’s right-hand man. He will also say that the intelligence agency backs him. We will see a struggle for power, but they will keep it under wraps. I don’t think any of the older figures wants Mojtaba to come to power. I also don’t think that Mojtaba will allow others to marginalize him.

When Khamenei dies, they will keep everything secret until the struggle is sorted out. They will then announce his death and we wouldn’t have even known that he died.

Similar to what happened with Mullah Omar, the leader of Taliban, whose death was revealed two years after his passing…

Yes. We should applaud the Taliban for their feat, but I don’t think the Iranians will keep Khamenei’s death secret for two years.

After the satellite launch, General Amir Ali Haji Zada declared that Iran was now a major power…

Iran is no more a major power than North Korea. Being a rogue state does not make you a major power. Being under the watchful eye of the international group due to the problems you make does not make you a world power. Furthermore, if it were a world power, then its withdrawal from the global markets should have sparked a crisis. With all of the sanctions against Iran and its exclusion from all markets, no such crisis has taken place.

True, it does have a large army, but it is outdated. All revenues have gone to the Guards. All the military vehicles are old and broken. Moreover, they lack creativity. All they have exported is the revolution.



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.