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AI power demand, grid constraints reshaping global energy system: World Energy Council

Drawing on dialogue with more than 275 senior energy leaders from 65 countries, the council said grids, storage and system integration were the most commonly identified constraints on progress

Neesha Salian
Neesha Salian

23 September, 2026

AI power demand, grid constraints reshaping global energy system: World Energy Council
Image: Getty Images/ For illustrative purposes

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Rising electricity demand from artificial intelligence, data centres and industrial electrification is colliding with geopolitical disruption and infrastructure constraints, forcing energy systems to navigate increasingly difficult trade-offs over security, affordability and decarbonisation, the World Energy Council said.

The council’s 2026 World Energy Trilemma report, released during Climate Week NYC, said disruption to energy flows through the Strait of Hormuz and growing demand from digital infrastructure were contributing to a broader rebalancing of the global energy system.

The report, titled Rebalancing World Energy: Trade-Offs and Transformations, said the challenge was increasingly shifting from deploying new generating capacity to integrating generation with grids, storage, flexible demand, markets and institutions.

Drawing on dialogue with more than 275 senior energy leaders from 65 countries, the council said grids, storage and system integration were the most commonly identified constraints on progress.

“World energy is being rebalanced in real time. Our World Energy Trilemma report shows how the electrification surge, geopolitical disruption and persistent development gaps are creating harder choices across grids, storage, markets and institutions,” Angela Wilkinson, secretary general and CEO of the World Energy Council, said.

“Integration and interoperability are now critical: connecting the parts of each system and enabling different systems and pathways to work together. Leadership means continuously rebalancing security, affordability and sustainability while keeping sight of what energy is ultimately for — better lives and stronger economies.”

The report identified five recurring tensions: investing for the future while managing current costs; redesigning markets within existing systems; strengthening national competitiveness while maintaining cross-border interdependence; sustaining the pace of energy transitions while retaining public legitimacy; and matching institutional ambitions with available capacity.

In sub-Saharan Africa, around 600 million people still lack access to electricity, with investment in transmission and other infrastructure needed alongside additional generation capacity.

Saudi Arabia is meanwhile targeting renewable sources for around 50 per cent of electricity generation by 2030, increasing the focus on integrating renewable capacity with storage and other sources of flexible generation.

The World Energy Council also cited China as an example of the scale of transmission infrastructure required to connect energy resources with major industrial and population centres. The country has developed nearly 50 ultra-high-voltage transmission projects, while its government has set a target for west-to-east electricity transmission capacity to exceed 420 gigawatts by 2030.

In Brazil, renewable sources accounted for 86.8 per cent of domestic electricity supply in 2025, while increasing curtailment is adding to the need for greater flexibility across generation, storage, markets and demand.

The World Energy Council describes “rebalancing” as continuously reassessing energy security, equity and environmental sustainability as technological, economic and geopolitical conditions change.

Founded in 1923, the council says its network comprises more than 3,000 member organisations with a presence in more than 100 countries.

Read: Is your home wasting water and electricity? DEWA’s new tool could have the answer

Jasim Al Awadi highlights du Tech’s focus on sovereign cloud, GPU-as-a-service and agentic AI

du’s chief ICT officer sets out how the UAE can adopt AI at scale while keeping data, models and critical workloads firmly under national control

Neesha Salian
Neesha Salian

22 September, 2026

Jasim Al Awadi highlights du Tech’s focus on sovereign cloud, GPU-as-a-service and agentic AI
Image: Supplied

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For years, digital sovereignty was largely a question of geography: where a country’s data physically sat. As artificial intelligence moves into government services and critical infrastructure, that definition no longer stretches far enough. The harder questions now are who can access data, where it is processed, how it flows between systems, and what happens when it is used to train and run AI models.

That shift is central to du Tech’s strategy, and to the conversations that took place at GISEC Global 2026. The company has been building the infrastructure to let UAE organisations tap advanced computing and AI while keeping sensitive workloads inside the country, from its National Hypercloud and GPU-as-a-service to a hybrid model designed to balance innovation with security. Increasingly, it is also grappling with agentic AI, a new generation of systems that do not just answer questions but take actions, and the safeguards that must come with them.

Jasim Al Awadi, chief ICT officer at du, spoke to Gulf Business about moving the sovereignty debate beyond data residency, making expensive AI compute accessible without heavy upfront investment, and what it will take for governments to trust autonomous AI agents with real systems and citizen data.

The conversation around digital sovereignty has traditionally focused on where data is stored. How is du Tech trying to move that discussion towards how data, and increasingly AI, is actually used and controlled?

Digital sovereignty is as important an imperative as data residency. Knowing where data is stored remains crucial, but organisations also need visibility over who can access it, where it is processed, how it moves between systems and what happens when it is used to train or run AI models. These questions become even more important because sensitive information can move across applications, models and automated workflows.

For du Tech, our focus is on giving organisations control across the full lifecycle of their data and AI workloads. du Tech’s National Hypercloud is central to this approach. Built on Oracle Alloy and hosted within du Tech’s liquid-cooled data centres in the UAE, it provides a locally operated sovereign cloud environment with access to over 200 Oracle Cloud Infrastructure services, including embedded AI capabilities, advanced hardware and GPUs. This gives government entities the scale and agility to develop and deploy AI services while keeping sensitive data and workloads within the UAE and maintaining the security, governance and operational control their requirements demand.

AI infrastructure is becoming enormously expensive. How can models such as GPU-as-a-Service help UAE organisations access advanced computing power without having to make huge upfront investments?

Not every organisation needs to own and manage expensive GPU infrastructure to benefit from AI. GPU-as-a-Service changes the model by giving government entities and large enterprises access to high-performance computing capacity as needed, allowing them to scale with their workloads without committing significant capital upfront or taking on the complexity of managing the underlying infrastructure.

du Tech’s GPU-as-a-Service provides access to next-generation GPUs for high-intensity computing and AI workloads, including generative AI, large language models and deep learning. Scaling GPU capacity also lets organisations work with larger datasets and complex models, while faster processing can shorten model training and deployment cycles.

This capability is supported by du’s wider digital infrastructure, spanning AI data centres, fixed networks and an expansive 5G network, creating the connectivity and computing foundation needed to develop and scale AI workloads in the UAE. It gives organisations a more flexible and cost-efficient path to move AI from experimentation into production without having to build the entire compute environment themselves.

As government and critical infrastructure organisations adopt more AI, why is a hybrid approach becoming so important, particularly when it comes to balancing innovation, security and data sovereignty?

Different workloads have different requirements, so there is no single environment that fits everything. This is the principle behind du Tech’s National Hybrid AI, which gives government entities and enterprises the flexibility to develop AI applications in their cloud of choice and deploy them on du Tech’s sovereign infrastructure. Organisations can access advanced cloud and AI capabilities while ensuring sensitive data and critical workloads remain within environments that meet their security, governance and sovereignty requirements.

du Tech‘s National Hybrid AI brings together a sovereign-secure AI production environment with du Tech’s National Hypercloud, advanced 5G and fibre networks, hyperscaler partnerships and an ecosystem of system integrators. This integrated environment allows organisations to develop, deploy, manage and scale AI applications securely, while retaining greater control where applications or data require it. For government and critical infrastructure organisations, that balance becomes paramount as AI moves into core operations

Agentic AI raises a very different cybersecurity challenge because these systems can take actions rather than simply generate answers. What safeguards need to be in place before organisations can trust autonomous AI agents with real-world systems and citizen data?

Agentic AI changes the risk because an AI system is no longer only producing an answer; it may be able to access systems, use data and take actions on an organisation’s behalf. That makes clear boundaries an absolute priority. Every agent should have a defined identity, limited permissions and access only to the data and systems required for its role. Higher-risk actions should require human approval, especially where citizen data, financial transactions or critical systems are involved.

Organisations also need continuous monitoring, audit trails and the ability to trace what an agent did, what information it used and why an action was taken. There must also be clear mechanisms to intervene or stop an agent if it behaves unexpectedly. Human accountability remains critical – autonomy should never equal removing oversight.

At du Tech, we are working on the infrastructure needed to deploy Agentic AI securely. Our collaboration announced earlier this year in June with Open Innovation AI brings together du Tech’s National Hypercloud and Open Innovation AI’s AI infrastructure orchestration capabilities to explore secure, in-country deployment of Agentic AI workloads.

This includes GPU orchestration and resource management, as well as the development of sovereign AI capabilities that can enable organisations to deploy and scale autonomous workloads while keeping data, models and infrastructure within UAE jurisdiction.

The collaboration was orchestrated with the UAE Cyber Security Council, with security, regulatory compliance and data sovereignty embedded at the infrastructure level.

Read: CEO Fahad Al Hassawi on du’s H1 numbers, AI ambition and its next chapter

UAE flags 377 fake Emiratisation cases across 266 companies

MoHRE defines fake Emiratisation as registering an Emirati with a company and issuing a work permit and employment contract without a genuine employment relationship or actual job responsibilities

Rajiv Pillai
Rajiv Pillai

22 September, 2026

UAE flags 377 fake Emiratisation cases across 266 companies
Image: Getty Images/Image for illustrative purpose

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The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) detected 377 cases of fake Emiratisation across 266 private-sector companies during the first half of 2026, as authorities step up monitoring of compliance with national employment policies.

The cases were identified through the ministry’s field and digital monitoring systems, with legal action taken against the companies involved in accordance with applicable legislation and regulations.

MoHRE stressed that the cases represent practices that are limited in scope and do not indicate that fake Emiratisation is widespread across the UAE labour market.

The ministry said it would continue to take firm action against attempts to circumvent Emiratisation requirements or improperly obtain government incentives intended to support the employment of UAE nationals.

Penalties against violating companies are being applied in accordance with Cabinet Decision No. 43 of 2025 Concerning Administrative Violations and Penalties Related to Initiatives and Programmes of the Emirati Talent Competitiveness Council.

What is fake Emiratisation?

MoHRE defines fake Emiratisation as registering an Emirati with a company and issuing a work permit and employment contract without a genuine employment relationship or actual job responsibilities.

Such arrangements can be used to circumvent Emiratisation targets or improperly access government support and incentives allocated for employing and training UAE nationals.

The ministry stressed that genuine Emiratisation requires more than registering a UAE national as an employee. It should involve real responsibilities, productive work and a career path that develops the employee’s skills and capabilities.

MoHRE warned that fake Emiratisation can distort labour market indicators, divert resources intended to support genuine employment and deprive UAE nationals of legitimate career and professional development opportunities.

It can also disadvantage companies that invest in recruiting, training and developing Emirati employees while complying with the country’s Emiratisation requirements.

MoHRE steps up digital monitoring

The ministry said it is continuing to develop its monitoring and verification capabilities, including the use of digital systems and data analytics to identify potentially unlawful practices.

MoHRE also urged Emiratis not to participate in arrangements where they are formally registered as employees without carrying out actual work.

Citizens and other members of the community were encouraged to report suspected fake Emiratisation cases to MoHRE through its call centre on 600590000, smart application or website.

“Genuine Emiratisation means a real job, real tasks, and a real career path; not just a number in records,” the ministry said.

PhonePe secures UAE central bank in-principle approval for payments licences

PhonePe, which launched its digital payments app in India in 2016, said it had more than 720 million life-to-date registered users as of August 2026

Gulf Business
Gulf Business

22 September, 2026

PhonePe secures UAE central bank in-principle approval for payments licences
Image: Supplied

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Indian digital payments company PhonePe has received in-principle approval from the Central Bank of the UAE for two payments licence categories, a step towards establishing locally licensed operations in the country, the company said on Tuesday.

The approvals cover retail payment services and card schemes and stored value facilities and follow initial regulatory due diligence, PhonePe said.

The in-principle approval does not allow the company to begin commercial operations. PhonePe said it was working with the central bank to complete requirements needed to secure final regulatory approval before launching in the UAE.

Once approved, the company plans to work with regional banks, licensed payment service providers and local technology companies as it builds its UAE operations.

PhonePe also said it intends to explore opportunities to support Aani, the UAE’s instant payments platform, and Jaywan, its domestic card scheme, using its technology infrastructure.

“We are honoured to receive in-principle approval from the CBUAE. The country’s vision and regulatory environment make it an ideal setting for our international journey. As the UAE advances toward an interconnected, digital-first economy, PhonePe aims to be a committed, long-term partner supporting its evolving ecosystem,” Ritesh Pai, CEO and ED, International Payments at PhonePe, said.

“By combining world-class technology with local partnerships, PhonePe intends to support the strong economic and trade corridors connecting the UAE, India, and global markets, while striving to deliver elevated everyday payment experiences across the Emirates.”

PhonePe already has a presence in cross-border payments in the UAE through a partnership with NPCI International Payments. The arrangement allows Indian travellers using PhonePe to scan local QR codes and make payments at participating NEOPAY and Network International terminals.

The proposed UAE expansion would represent a broader move beyond facilitating payments for Indian users travelling overseas, giving PhonePe a regulated operating presence in the market once final approvals are obtained.

PhonePe, which launched its digital payments app in India in 2016, said it had more than 720 million life-to-date registered users as of August and a merchant acceptance network covering more than 50 million businesses.

Its operations span consumer and merchant payments as well as lending and insurance distribution. The company also operates Share.Market, a stockbroking and mutual fund distribution platform, and Indus Appstore, an Android-based mobile app marketplace.

The one-guest rule: Why NAVA’s founder thinks one bad experience can change everything

From watching his fisherman grandfather sell fresh seafood to studying restaurant businesses through banking, Ali Musalam’s career has shaped a simple belief: hospitality is built one experience at a time, and no unhappy guest is too small to matter

Nida Sohail
Nida Sohail

22 September, 2026

The one-guest rule: Why NAVA’s founder thinks one bad experience can change everything

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For Ali Musalam, the founder and CEO of NAVA Group, hospitality did not begin with spreadsheets, expansion plans or restaurant concepts. It began with fish.

Growing up close to his grandfather Ahmed, a fisherman, Musalam watched families in his neighborhood buy seafood directly from him. He sometimes helped deliver the fish to their homes. Those early experiences, he says, taught him a lesson that remains central to his approach: quality starts with the product.

Family travel added another layer, exposing him to different cuisines and hospitality cultures. Together, those experiences shaped what Musalam describes as NAVA’s balance between local authenticity and global exposure.

From banking to hospitality

Musalam entered the industry after working in SME banking, where many of his clients were restaurants and cafés. Looking at their financials and business decisions from the banking side gave him a view of what made some concepts work while others struggled.

But becoming an operator changed his perspective.

“Banking gave me discipline in analyzing numbers, risk, feasibility, and decision-making,” Musalam said. “But becoming an entrepreneur also taught me that there is a big difference between analyzing someone else’s business and carrying the responsibility for your own.”

His study of restaurants around the world also reinforced another belief: memorable hospitality cannot be reduced to food alone. Service, music, lighting, design, presentation and the atmosphere must work together.

The one-guest test

That thinking becomes most apparent in Musalam’s approach to growth.

“It is easy to look at monthly sales, number of branches, reviews, or total covers, but behind every number is a person who chose to spend their time and money with your brand,” he said.

More pointedly, he rejects the idea that one unhappy customer can be dismissed because thousands were satisfied.

“If one guest has a bad experience, I do not believe we should dismiss it just because thousands of others were happy,” Musalam said.

For NAVA, the challenge as it expands is turning that founder-level belief into an organizational habit through training, systems, accountability and guest feedback.

The ambition extends beyond expansion. Musalam wants NAVA to help demonstrate that Saudi-born hospitality brands can meet international standards without abandoning the characteristics of the local market.

For Musalam, that distinction may ultimately define NAVA’s legacy: not simply how many restaurants it opens, but whether each one earns its place with the guest sitting inside it.

Abu Dhabi’s IHC names Fount Trust as ultimate parent after restructuring

The restructuring does not change IHC’s operations, strategy or business activities

Neesha Salian
Neesha Salian

22 September, 2026

Abu Dhabi’s IHC names Fount Trust as ultimate parent after restructuring
Image: IHC

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Abu Dhabi-listed International Holding Company (IHC) has confirmed Fount Trust as its ultimate parent following a restructuring above Royal Group, while its ultimate beneficial ownership remained unchanged.

Royal Group will continue to exist and operate under the new structure, IHC said, adding that the restructuring would not affect its operations, strategy or business activities.

The ownership chain remains unchanged up to Royal Group. Pal Group of Companies remains the majority shareholder of IHC, while Royal Group remains the majority shareholder of Pal Group. Fount Trust now sits above Royal Group as its ultimate parent.

IHC said the restructuring was designed to provide continuity of ownership and long-term stewardship across generations.

The company will continue to be governed by its board and managed by its executive team under its existing corporate governance framework. It remains subject to reporting, disclosure and governance requirements applicable to companies listed on the Abu Dhabi Securities Exchange.

“Our responsibility is to build an institution capable of creating value over generations,” IHC chief executive Syed Basar Shueb said.

“The establishment of Fount Trust provides a framework for long-term stewardship, while Royal Group continues to operate and fulfil its role within the ownership structure,” he added.

IHC said the structure was intended to provide a consistent framework for long-term investment and ownership while allowing authorised decision-makers to respond to changing markets and opportunities.

The Abu Dhabi investment company has a market capitalisation of about Dhs840bn ($229bn) and operates through more than 1,300 subsidiaries spanning technology, infrastructure, financial services and consumer businesses, according to company figures.

The restructuring does not result in any change to IHC’s ultimate beneficial owner, the company said.

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AI power demand, grid constraints reshaping global energy system: World Energy Council