Major companies such as Amazon and Google on Wednesday signed a pledge to support the goal of at least tripling the world’s nuclear energy capacity by 2050, on the sidelines of the CERAWeek conference in Houston.

Shale company Occidental and Japanese heavy machinery maker IHI Corp also added their names to the pledge.

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The pledge is expected to gain more support over the coming months from industries including maritime, aviation and oil and gas, said the World Nuclear Association (WNA), the nuclear industry group that facilitated the pledge, in a press release.

The pledge adds on to the vow from over 30 countries, which also aimed to triple capacity by 2050 in 2023.

Nuclear energy, a source of clean power, generates 9 per cent of the world’s electricity from 439 power reactors, according to WNA.

As of early 2025, the world has only around 411 nuclear power reactors operating, with a combined capacity of 371 gigawatts.

GEMS Education and Positive Zero have signed the largest renewable energy deal in the UAE education sector to date. The deal covers the design, engineering, installation, and maintenance of solar rooftops, carports, and bus parking across 23 GEMS schools in Dubai.

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The recently installed solar systems will collectively boast a capacity nearing 12.7 MWp, generating 21.25 GWh of electricity annually—enough to power 2,000 homes for a full year.

Impact of the initiative

This particular initiative is expected to reduce 14,276 metric tonnes of carbon emissions per year, equivalent to taking 3,300 cars off the road. Over the project’s lifespan, this reduction would equate to the environmental benefits of cultivating nearly 6 million trees.

“GEMS Education is proud to lead the way in terms of sustainability within the UAE’s education sector. This landmark agreement with Positive Zero not only underscores our commitment to reducing our carbon footprint but also aligns with our vision of integrating renewable energy at scale,” Dino Varkey, Group Chief Executive Officer of GEMS Education, said, reflecting on the benefits of the deal.

He further accentuated this by stating that the education group is contributing to the UAE’s Net Zero 2050 Strategy by harnessing solar power and is also instilling a sense of environmental responsibility in students, who are the leaders of tomorrow. The teaching of climate literacy has long been emphasised in GEMS schools, and it is through this agreement that those teachings can be translated into actions for the students.

This particular partnership is in complete alignment with the UAE’s Net Zero 2050 Strategy, intended to drive the country’s transition towards net-zero emissions.

“At the core of our partnership with GEMS Education is a shared commitment to sustainability. GEMS Education is taking tangible steps in this direction with the decarbonisation of its operations through our solutions, in addition to integrating climate literacy across people development, curricula, and student initiatives,” David Auriau, Chief Executive Officer of Positive Zero, said.

How GEMS education furthers sustainability

GEMS Education has substantially helped in reducing greenhouse gas emissions across its schools as well as other operations, by placing the harnessing of solar energy as an integral part of its ESG (Environmental, Social and Governance) and sustainability strategy.

“This milestone is just the beginning of our broader sustainability journey focused on reducing our environmental impact and promoting a greener future for all. It builds on our ongoing initiatives as we continue pushing boundaries to drive meaningful change and create a lasting impact. It stands as a testament to our dedication to a greener, more sustainable future,” Ovais Chhotani, Chief Financial Officer of GEMS Education, reiterated, emphasising the advantages of the agreement.

Each of GEMS’ 23 schools selected for this initiative will progress towards commissioning and completion, expected at the beginning of 2026.

GEMS Education has embedded climate literacy in the curriculum of its schools, furthering the mandate of sustainability even more. This includes the mission of having a United Nations-accredited Climate Change Teacher in every classroom, as well as longstanding programmes of student-led and educator-led sustainability initiatives.

Not only is the education group driving sustainability at the levels of students’ education but also at the corporate level and within the wider community through student-led COP-style events, debates, energy efficiency, waste management, water conservation initiatives, and much more.

This latest agreement builds on GEMS’ collaboration with Positive Zero and its distributed generation business, SirajPower, which previously provided GEMS with an EPC (Engineering, Procurement, and Construction) contract for a solar project at the net-zero-energy GEMS Founders School – Masdar City in Abu Dhabi.

With inflation cooling, Pakistan’s central bank hit pause on its multiple rounds of monetary easing that might have risked destabilising its currency or worsening the trade deficit.

Economists said the government should shift its focus to implementing economic reforms as interest rate cuts are not the elixir for growth, after the country’s central bank on Monday unexpectedly kept interest rates unchanged at 12 per cent.

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“The rate cuts alone may not meet growth targets,” said Vaqar Ahmed, economist and team lead with Oxford Policy Management. “They need to be complemented by prudent fiscal measures, such as tax reforms, energy sector viability and privatisation of state-owned enterprises, to encourage private sector investment and prevent crowding out.”

The central bank’s rate hold snapped the largest easing cycle in the country’s history, disappointing some businesses burdened by high borrowing costs.

Economists had expected a cut on Monday, following a series of cuts totalling 1,000 basis points from a record high of 22 per cent in June last year to revive the economy.

The economy, which grew 0.9 per cent in the first quarter, is expected to gain momentum for the rest of the fiscal year, according to central bank chief Jameel Ahmad. Though first-quarter growth is well below its 2.5-3.5 per cent target for the year, the economy is not stalling.

However, Pakistan’s energy tariffs and the need for fiscal austerity measures under the International Monetary Fund programme pose significant challenges to reviving demand.

Most economists expect the central bank to resume cuts soon, either later this fiscal year or at the start of the next one despite concerns around the trade deficit and impact on the currency. Pakistan’s trade deficit in January increased 18 per cent year on year to $2.313bn.

The central bank is “likely to wait for more clarity on the external front or until they are confident about achieving their medium-term inflation target of 5-7 per cent,” said Saad Hanif, head of research at Ismail Iqbal Securities.

“Once that happens, I expect them to resume rate cuts, though at a slower pace.”

Ehsan Malik, CEO of Pakistan Business Council (PBC), warned that cutting rates on Monday would have necessitated a reversal soon, as monetary easing raises imports and trade deficits, which put pressure on the exchange rate, fuelling inflation.

The cash-tight nation is navigating reforms under a $7bn IMF programme approved in September. The first installment of the loan is under review, and if successful, Pakistan will receive a tranche of $1bn.

Revive demand and investments

Inflation in Pakistan soared to around 40 per cent in May 2023, driven by currency devaluation and subsidy removals for IMF approvals. But inflation dropped to a near-decade low of 1.5 per cent in February, providing room for the central bank to boost growth.

Economists also warn of the risk of the government taking advantage of lower interest rates to increase borrowing for an expansionary budget. That would potentially destabilise the progress made under the IMF programme and crowd out the private sector.

Pakistan’s central bank reported government borrowing has rebounded, while private sector credit jumped 9.4 per cent in the second quarter of the current fiscal year.

However, purchasing power constraints were expected to remain a deterrent to revived borrowing and investment.

“Consumer purchasing power will take time to recover from the 75per cent + price surge between 2021-2024,” said Mustafa Pasha, executive director at Lakson Investments.

Asfandyar Farrukh, chairman of the Chainstore Association of Pakistan, said stagnant incomes and increased taxes have reduced consumer spending power.

Retail volumes of renowned brands fell 10-15 per cent over the past year and a half, with “razor-thin profit margins” due to frequent discounts, he said, adding that medium and large retailers were consolidating to cope, or were shutting down, leaving only a few “deep-pocketed players” investing in growth.

High debt

Pakistan’s banking sector holds the world’s largest proportion of government securities relative to its total assets, according to an October 2024 IMF report.

The high domestic debt, mainly financed by banks, crowds out private sector credit, hindering policy transmission, reducing the impact of interest rate changes on the private sector, the IMF said in its report.

Reza Baqir, former chief of the State Bank of Pakistan, stressed the importance of foreign exchange stability for sustaining economic growth in Pakistan, given its history of current account issues after periods of high consumption and import-led growth.

Pakistan usually sets its budget for the year in June, with the fiscal new year running July 1 to June 30.

“Where there is fiscal dominance, there is relatively little that monetary policy will be able to do to prevent a current account deficit blow-out” if political or other developments lead to populist budgetary policies,” he warned.

Mukesh Ambani’s Reliance Jio signed a deal with Elon Musk’s SpaceX to bring Starlink satellite internet services to India, a surprise move from the billionaires after being at odds for several months over how the country should grant them spectrum.

The deal follows a similar partnership announcement between Starlink and India’s No. 2 telecom player Bharti Airtel a day before.

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The Indian telecom operators will stock Starlink equipment in their retail stores, giving Starlink a direct distribution point in thousands of such outlets across the country.

Both deals are conditional upon Starlink obtaining government approval to begin operations in the country.

The agreements come weeks after Indian Prime Minister Narendra Modi met with Elon Musk in Washington, where they discussed issues including space, mobility, technology and innovation.

India’s satellite service sector

India’s satellite service sector is set to grow 36 per cent a year to $1.9bn by 2030, according to Deloitte.

“The deal creates a business modality for Starlink to make government approvals easier,” said Chaitanya Giri, Space Fellow at the Observer Research Foundation.

Starlink has been waiting since 2022 for licenses to operate commercially in India, with no clear timeline yet on a decision. It has been delayed for reasons including national security concerns.

“The advantage with Starlink is that it is a larger constellation, it benefits from SpaceX’s high rocket launch frequency, and the geopolitical heft thanks to the Trump-Musk relationship,” Giri added.

The pact is tied to certain financial terms, a source familiar with the matter said, without disclosing details.

“This is a low-cost entry model for” Starlink in India, the person added.

Jio, India’s largest telecom operator, will also provide installation and activation support for the Starlink devices, too.

Reliance said in a statement that Jio and SpaceX are also evaluating other areas of cooperation to leverage their respective infrastructure, without elaborating.

Musk and India

The stakes are high for Musk in India, where he also recently signed a deal for first Tesla showroom to sell its imported electric cars.

Yet, tariffs of over 100 per cent weigh on the carmaker, with Musk repeatedly complaining that they are among the steepest in the world.

“While it has been surprising, it’s a prudent strategy for Starlink to enter the India market and a win-win for all the parties involved earlier competing for the pie and now cooperating and sharing,” said Neil Shah, co-founder of research firm Counterpoint.

Jio Platforms, which already operates a satellite internet joint venture with Luxembourg-based SES, has secured approvals from India’s space regulator to launch commercial satellite broadband services in the country.

Ambani’s Reliance and Musk have previously clashed over the methodology of awarding spectrum for satellite services in India.

Reliance had urged an auction but the Indian government sided with Musk, who wanted it to be allocated administratively, in line with global trends.

Over the past decade, GCC issuers mainly relied on banks, bonds, and sukuk to meet their funding needs.

The total amount of private capital financings raised by GCC issuers between 2020 and 2024 increased significantly to $54.8bn, from $10.4bn between 2015 and 2019, and is set to rise further.

In the next few years, we anticipate private capital financings in GCC countries will gain further importance, considering higher interest from private capital providers in the region.

The number of transactions that were financed with private capital peaked at $20.4bn in 2023, however, this decreased to $14.5bn in 2024 (see chart 1).

The steep decline over 2024 largely resulted from improving financing conditions in local banking sectors and bond and sukuk markets, and the decline in interest rates.

Even so, the number of transactions in 2024 was still 2.7 times higher than in 2015 (see chart 1), which is indicative of the strong fundamentals that underpin the increase in private capital financings.

Bonds continue to dominate

We analysed the data related to financing raised by GCC issuers over the past decade. We specifically focused on financing from banks, bond and sukuk issuances, equity capital market transactions – such as initial public offerings (IPOs) – and private capital financings via private credit investments, private equity investments, venture financing, sovereign wealth fund investments, and other fund investments or credits.

Based on our analysis, GCC issuers, including GCC governments, raised $3.5tn over the past decade (see chart 2). Bond issuances, which accounted for 51 per cent of the total amount raised in 2024, constituted the preferred method of financing, followed by financing from banks, which contributed 26 per cent.

In addition, three other asset classes experienced a significant increase in GCC issuers’ funding mix: sukuk issuances accounted for 19 per cent of the amount raised in 2024, equity capital market transactions – such as IPOs – or 6 per cent, and private capital financings for 3 per cent.

Focus on large deals

Private companies received most of the private capital financing and those investments concentrated on the largest deals.

Over the past decade, the top 10 transactions accounted for almost 80 per cent of the total annual volume of private capital financings. What’s more, large corporates, including government-related entities (GREs), were among the recipients of private capital financing.

Both large corporates and GREs will continue to optimise their funding mix and seize opportunities, while smaller companies will increasingly turn to private financings, particularly if they are at an early development stage.

Our analysis of private financing transactions shows that private financiers have expanded their reach over time to provide funding to more mature and established companies, not just those at early development stages.

Established companies received 79 per cent of private financings in December 2024, up from 31 per cent in 2015 (see chart 3).

Private financing can help early-stage firms

Even though these established companies could have easily raised the required funding from banks or capital markets, they chose private financings, which could provide a faster or more streamlined execution, more flexible terms, or more competitive pricing.

Nevertheless, we do not expect private capital to challenge the role banks play in the region because the overall volume of private financings remains relatively small.

On the demand side, private capital financing can help early-stage firms and make them bankable over time, which fuels the financial ecosystem by creating more growth opportunities. Banks tend to be wary of providing loans to companies at early development stages unless they benefit from external support or guarantees.

On the supply side, regional private capital providers for GCC corporates, including sovereign wealth funds, will continue to diversify their geographic exposure to avoid over-relying on a single economy or region.

GCC investors will remain on the radar of large companies that aim to raise money outside of the traditional banking system or capital markets, especially when interest rates are high.

The writer is the MD and Financial Institutions Sector lead at S&P Global Ratings (for the emerging EEMEA region).

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