Artificial intelligence is moving rapidly from experimentation to production, raising new questions about security, governance, and control. For governments, financial institutions and other regulated sectors, the challenge is no longer where data is stored, but how AI models, compute, infrastructure and access are governed as systems become more autonomous and critical to daily operations.

Rajeev Nair, SVP for Special Projects at Core42, explains how the company sees AI infrastructure and cybersecurity converging, why agentic AI will put greater pressure on governance frameworks, and how sovereign cloud models could shape the next phase of AI deployment in the UAE and beyond.

Tell us about your participation at GISEC Global this year.

GISEC Global is one of the region’s most important cybersecurity events, and our participation this year reflects how closely cybersecurity, digitally enabled sovereignty and AI are becoming interconnected.

A key focus for Core42 will be announcing new strategic collaborations with the National Regulator, government and regulated-sector organisations that strengthen the ecosystem to support the UAE’s broader digital transformation ambitions.

Core42 is participating to demonstrate how sovereign cloud infrastructure and cyber-resilience can come together to address the requirements of highly sensitive and regulated environments.

Together with our sister company, CPX, we are bringing the digital sovereignty story to life by helping governments and enterprises retain greater control over their critical data, infrastructure and operations while continuing to access the scale and innovation they need.

Central to our presence will be Core42’s Signature Private Cloud, designed for Secret and Top Secret data, Sovereign AI orchestration and mission-critical workloads. It combines data, operational and technology-enabled sovereignty with classified-grade security, bringing together the scalability of cloud with the control and assurance required by government, critical infrastructure and regulated sectors.

GISEC also gives us an important platform to engage with customers, partners and government stakeholders on how digital sovereignty is evolving beyond compliance into an operating model for resilience, security and control.

The UAE is fast becoming a hub for developing the technologies that defend it, and at GISEC we’re excited to show how home-grown capability strengthens security across the region.

As AI moves from experimentation into production and becomes embedded in critical services, those foundations will become increasingly important to how organisations in the UAE adopt and scale Cloud and AI securely.

How do you see digital sovereignty and national cybersecurity resilience connecting?

Digital-enabled sovereignty and national cybersecurity resilience are increasingly inseparable because resilience ultimately depends on control. For governments and regulated sectors, understanding where data is stored is only one part of the equation. They also need clarity over who can access and operate the infrastructure, which jurisdiction applies, how policies are enforced, and whether services can continue securely through disruption.

This is why digital and data sovereignty have moved beyond data residency. It now encompasses control over data, operations and technology, and as AI adoption grows, that extends to models, compute and inference as well. Security must therefore be engineered into the infrastructure from the outset, with strong access controls, zero-trust architecture, continuous compliance, auditability and resilience built into the operating environment.

For national infrastructure, sovereignty enables control over the digital environment, while cybersecurity protects and reinforces that control. Together, they provide the resilience needed to operate government services, critical infrastructure and increasingly AI-driven systems securely and at scale.

What trends are you anticipating will govern AI in the next few years?

One of the biggest shifts will be from policy-based AI governance to governance and sovereignty controls built directly into AI systems and infrastructure. As AI moves into production, organisations will need controls that can be continuously enforced, monitored and audited, rather than relying on periodic compliance exercises.

Accountability will also become increasingly important as agentic AI gains greater autonomy. Governance will need to extend beyond model and data safety to address how agents behave, how decisions are traced, as well as who remains accountable for outcomes.

Gartner predicts that by 2027, 40 per cent of enterprises will demote or decommission their autonomous AI agents because of governance gaps that only surface after a production incident. This reinforces the need for stronger governance if agentic AI is to move successfully from experimentation to deployment at scale. We also expect governance frameworks to align more closely with international standards, while remaining adaptable to local requirements so compliance is built in from the outset.

Resilience will be another defining priority. Once AI supports public services, financial systems and other critical operations, performance alone will not be enough. Organisations will increasingly assess AI environments on their ability to operate securely, reliably and at scale while maintaining governance and sovereignty controls.

Where do you see AI infrastructure and cybersecurity heading in the next few years?

The distinction between AI infrastructure and cybersecurity will continue to narrow as security, sovereignty and resilience become fundamental requirements of the infrastructure itself rather than separate layers added after deployment.

AI is already becoming part of critical government services and regulated industries, including financial services, where systems need to operate reliably every day and at scale. Once AI supports these environments, downtime, cyber disruption, data loss, or governance failures can have significant operational consequences. Resilience therefore becomes essential, with secure architecture, redundancy, governance and recovery capabilities designed into the environment from the outset.

In the UAE, we are already seeing this at scale through sovereign-enabled infrastructure supporting more than 11 million daily digital interactions for Abu Dhabi Government and a sovereign-enabled financial cloud for the Central Bank of the UAE.

Governance will increasingly need to operate in the same way. Rather than relying only on policies and periodic compliance checks, organisations will need greater visibility into how requirements are applied across their infrastructure. Core42’s Insight application, for example, maps regulatory requirements to technical controls, enabling customers to understand what applies to their workloads and how those controls are being implemented.

AI infrastructure itself will also become more heterogeneous. Training, fine-tuning, inference, agentic systems and real-time applications have different requirements around performance, latency, cost and energy efficiency. Organisations will increasingly want the flexibility to match workloads to the right infrastructure rather than being locked into a single architecture or technology roadmap.

What is the anticipated growth of the AI and data sovereignty industry in the next few years?

We are seeing two fast-growing markets converge — AI infrastructure and sovereign-enabled cloud. According to data from Grand View Research (GVR), the UAE’s AI ecosystem is projected to reach approximately Dhs170bn, or around $46bn, by 2030, reflecting the scale of investment in AI infrastructure, adoption and capability development.

At the same time, Gartner forecasts the global sovereign cloud IaaS market to grow at a CAGR of 36 per cent, reaching $169bn by FY2028. This reflects a broader shift as governments and regulated industries seek the benefits of AI while retaining greater control over data, workloads and infrastructure.

With AI expected to contribute around 14 per cent of the UAE’s GDP by 2030, the need for secure, resilient and sovereign infrastructure will only become more important.

As AI becomes more deeply embedded in regulated industries and critical national systems, digital sovereignty will increasingly become part of the infrastructure decision itself.

Sovereign-enabled AI and sovereign-enabled cloud will therefore move further into the mainstream, with organisations looking to combine scale and innovation with security, governance, resilience and jurisdictional control.

Abu Dhabi’s Advanced Technology Research Council (ATRC) and the UAE Ministry of Education have launched a national competition asking university students and recent graduates to develop working prototypes addressing technology challenges set by major UAE organisations.

The Advanced Technology Pioneers competition, launched under the National Science, Technology and Innovation Festival, will initially feature three challenge tracks set by the Department of Culture and Tourism – Abu Dhabi, Emirates Nuclear Energy Company and EDGE Group.

The challenges span artificial intelligence and data science, robotics and sustainability, and communications networks.

DCT Abu Dhabi is asking participants to develop a tool that models how changes in aviation capacity could affect hotel demand in the emirate, linking flight data with visitor and accommodation trends.

ENEC’s challenge focuses on the sustainable management of seasonal jellyfish blooms near coastal infrastructure, while EDGE is seeking solutions that can maintain connectivity as users move between Wi-Fi, 5G, satellite and wired networks.

“The strength of a knowledge-based economy lies in the capabilities of its people,” ATRC DG Shahab Issa Abu Shahab said.

“By challenging emerging talent to deliver working solutions for leading national organisations, we are aiming to strengthen national capabilities, accelerate the transition from education to industry, and support in building the skilled workforce that underpins a competitive knowledge economy.”

Teams of three to four members can apply through ATRC’s ChallengeON platform, with applications closing on October 11.

Participants will receive mentorship from subject-matter experts during the programme.

Finalists are due to present their prototypes at the NSTI Festival in November, with one winning team selected in each of the three challenge tracks.

Each winning team will receive Dhs50,000, alongside additional internship, placement and industry opportunities depending on the participating organisation.

ATRC said the competition forms part of its broader efforts to develop advanced technology skills and connect students with the UAE’s research and innovation ecosystem.

The council said its talent development initiatives have engaged more than 40,000 students to date.

Sharjah Investment and Development Authority (Shurooq) plans to expand Al Faya Retreat in Mleiha from five rooms to 20 accommodation units by Q4 2026, the authority said during Arabian Travel Market (ATM).

The expansion will add private desert accommodation while the retreat’s existing five guestrooms will be converted into spa and wellness spaces, Shurooq said.

Al Faya Retreat is located in Mleiha, home to the UNESCO World Heritage-listed Faya Palaeolandscape, which preserves evidence of human occupation dating from about 210,000 to 6,000 years ago and provides evidence of how people adapted to changing climatic conditions.

Shurooq said the expansion was designed to increase capacity while maintaining the retreat’s low-density character and limiting intervention in the surrounding archaeological and natural landscape.

The new units will be manufactured off-site using a modular construction approach intended to reduce excavation, construction activity and material storage at the site, it said.

The units will be positioned individually across the desert terrain, with the design intended to preserve privacy and open views while reducing their visual impact on the landscape.

Shurooq said work would be carried out in coordination with relevant authorities and in line with heritage protection and site-management requirements.

“Al Faya Retreat has a clear identity and a hospitality experience closely connected to the nature of its setting, while its accommodation capacity has been deliberately limited since its launch to preserve the privacy of the experience and its connection to the site,” Shurooq CEO Ahmed Obaid Al Qaseer said.

“The expansion therefore allows us to welcome more visitors and develop the experience we offer them without changing the elements that have given the retreat its distinct character.”

Al Qaseer said the project reflected Shurooq’s approach of balancing tourism development with the protection of natural and archaeological assets.

“For Shurooq, growth does not simply mean making a destination bigger, but allowing it to evolve in a way that suits its setting and identity,” he said.

Shurooq said Al Faya Retreat occupies two restored buildings dating to the 1960s, including a former medical clinic and a shop beside Mleiha’s oldest petrol station. The buildings will be converted into spa and wellness spaces while remaining part of the property.

The additional capacity is expected to support hospitality, transport, guided tours and other visitor-related services in Mleiha, Shurooq said.

Khawla Al Hashimi, Shurooq’s chief projects officer, said the design was intended to keep the surrounding desert as the dominant element of the visitor experience.

“At Al Faya, good design is measured as much by what we choose not to add as by what we build,” she said.

Sharjah Collection

Al Faya Retreat is part of the Sharjah Collection, a portfolio of seven properties that also includes Al Badayer Retreat, Kingfisher Retreat, Moon Retreat, Najd Al Meqsar, Al Rayaheen Retreat and Nomad.

Shurooq said Minor Hotels was scheduled to assume management and operation of the collection from October 2026. Minor Hotels announced in July that it had been appointed to manage and operate the seven-property portfolio.

Amir Golbarg, chief operating officer for the Middle East and Africa at Minor Hotels, said the hotel group would support the collection while retaining the individual character of each destination.

The expansion was announced during ATM 2026, which is being held at Dubai World Trade Centre from September 14 to 17.

Etihad Airways and Etihad Rail, the developer and operator of the UAE’s National Rail Network, have signed a Memorandum of Understanding (MoU) to explore opportunities to create a seamless air-rail travel experience across the UAE.

The partnership aims to make it easier for residents and visitors to connect between destinations across the country, while supporting tourism growth, economic diversification and sustainable transport, a WAM report said.

The agreement, signed during Arabian Travel Market, brings together two of the UAE’s key transport networks under a shared vision to develop a more integrated mobility ecosystem.

Airport and rail connectivity in focus

Under the MoU, the organisations will explore a range of initiatives aimed at simplifying travel and strengthening Abu Dhabi’s position as a gateway to the wider UAE.

One key area of focus will be opportunities to improve connectivity between Zayed International Airport and the Mohammed Bin Zayed City Passenger Station through dedicated shuttle services. The initiative would enable smoother transfers between the airport and the national railway network while enhancing multimodal travel integration.

Read more: Dubai to have four Etihad Rail stations across national and high-speed networks

The partnership will also examine the development of integrated air and rail booking experiences and station-based passenger services, with the aim of creating a more seamless end-to-end journey from the point of departure to the final destination.

Focus on tourism and economic growth

Arik De, chief revenue and commercial officer, Etihad Airways, said, “Etihad Airways plays a unique role in bringing millions of visitors to Abu Dhabi each year and our partnership with Etihad Rail reflects a shared ambition to strengthen the emirate’s position as a leading global destination.

“Through this partnership with Etihad Rail, we will explore new opportunities to link air travel with destinations across the UAE, supporting tourism growth, creating greater convenience for travellers and contributing to Abu Dhabi’s long-term economic development.”

Azza AlSuwaidi, chief operating officer, Etihad Rail, said, “The country continues to develop an integrated national transport system that keeps pace with its comprehensive development journey and supports its future ambitions, recognising that the future of transport lies in the integration of different modes of mobility.

“Since the launch of passenger rail services earlier this year, Etihad Rail has continued to strengthen the role of the national railway network in connecting cities and regions across the UAE, while providing a smoother mobility experience for residents and visitors.

“Our partnership with Etihad Airways represents a further step towards strengthening integration between rail and aviation, supporting the growth of the tourism sector, economic diversification and sustainable development across the UAE.”

Abu Dhabi-based International Holding Company and India’s Adani Group have signed a memorandum of understanding with the government of Odisha to explore 14 projects across sectors including critical minerals, renewable energy, healthcare, tourism and industrial infrastructure, the eastern Indian state said.

The proposed portfolio, valued at around INR2tn, also includes downstream metals, slurry pipelines, rare earths, chemicals and petrochemical derivatives, renewable energy equipment, skills development and sports infrastructure, according to the Odisha government.

The agreement was announced during Odisha Chief Minister Mohan Charan Majhi’s investment outreach in the UAE, which included meetings with IHC companies, investors and business groups aimed at expanding industrial and trade links.

Majhi held a roundtable with IHC executives and group companies in Abu Dhabi, where discussions focused on investment prospects and industrial cooperation, the Odisha Chief Minister’s Office said.

IHC chief executive and MD Syed Basar Shueb took part in the discussions.

The latest agreement builds on a separate MoU signed in July between Adani Enterprises and International Resources Holding, an IHC Group company through 2PointZero, to develop an integrated aluminium project in Odisha through a 50:50 joint venture.

That proposed project includes a four million metric tonnes per annum alumina refinery, a two million tonnes per annum aluminium smelter, a 4,000-megawatt captive power plant and a one million tonnes per annum downstream manufacturing park, Adani said.

During the latest UAE meetings, discussions also covered potential sites and further development of the aluminium project, according to the Odisha government.

Odisha separately engaged with the Indian Business and Professional Group in Abu Dhabi on strengthening trade, investment and industrial cooperation between the state and UAE-based businesses.

The state said discussions included opportunities to increase exports from Odisha and deepen commercial links with companies in the UAE.

Majhi also met Borouge chief executive Hazeem Sultan Al Suwaidi to discuss potential investment and downstream development in Odisha’s petrochemicals sector.

Odisha invited Borouge to explore development of a downstream chemicals complex that could potentially be linked to Indian Oil Corporation’s proposed naphtha cracker at Paradip, according to the state government.

Borouge reported revenue of $5.85bn for 2025, according to its full-year results.

The Odisha government also held discussions with UAE-based investment institutions on potential participation in infrastructure projects through public-private partnerships.

The 14-project MoU broadens the scope of Odisha’s engagement with IHC and Adani beyond the aluminium venture into sectors including critical minerals, chemicals, renewable energy, healthcare, tourism and industrial infrastructure.