Politics
Oil-rich UAE turns to AI to grease economy

ABU DHABI: Deep in the Abu Dhabi desert, a vast AI campus a quarter the size of Paris is starting to emerge, the oil-rich UAE’s boldest bet yet on technology it hopes will help transform its economy.
Towering cranes clank as long, low buildings take shape below, the eventual home of data centres powered by five gigawatts of electricity — the biggest such facility outside the United States.
The campus will provide storage and computing capacity over a 3,200-kilometre (1990-mile) radius covering up to four billion people, said Johan Nilerud, chief strategy officer of Khazna Data Centres, a subsidiary of Emirati AI giant G42, which is spearheading the project.
Since the 1960s, oil has fuelled the United Arab Emirates’ rise from a desert outpost of nomadic tribes to a Middle East economic and diplomatic powerhouse.
Now, the UAE is hoping that AI can help fill the gap when oil demand inevitably wanes.
“The UAE is punching above its weight because it’s a very small country that really wants to be at the forefront,” said Nilerud.
“The idea is obviously to bring in international partners… to be this AI-native nation,” he added.
Phase one of the AI campus — the G42-built, one-gigawatt Stargate UAE cluster — will be operated by OpenAI and is backed by other US tech giants such as Oracle, Cisco, and Nvidia.
And last month, Microsoft announced more than $15.2 billion in investments in the UAE by 2029, after injecting $1.5 billion last year into G42.
Core subject
The UAE has been betting heavily on AI since 2017, when it named the world’s first AI minister and became the second country after Canada to unveil a national AI strategy.
A year later, G42 was founded with backing from Abu Dhabi-based sovereign wealth fund Mubadala. Chaired by the UAE president’s brother, Sheikh Tahnoon bin Zayed Al Nahyan, it offers a range of AI products and employs more than 23,000 people.
The UAE said it has pumped more than $147 billion into AI since 2024, including up to 50 billion euros ($58 billion) in a one-gigawatt AI data centre in France.
“AI, like oil, is a transversal sector, which can potentially have a leverage effect and an impact on different activities,” said Professor Jean-Francois Gagne of the University of Montreal.
In 2019, Abu Dhabi opened Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the world’s first AI-dedicated university. Last August, AI became a core subject in the country’s public schools from kindergarten up.
MBZUAI and Abu Dhabi’s Technology Innovation Institute (TII) have since launched generative AI models, including Falcon, which compared favourably with industry leaders and now has an Arabic version.
Keen to cut reliance on imported hardware and expertise, the UAE has made large investments in research, development, and homegrown programmes.
TII opened a research lab with Nvidia to “push the boundaries” of generative AI models and develop robotics systems, said executive director Najwa Aaraj.
“Sovereignty and self-sustainability and domestic customisation of technology to local needs are all very, very important,” Eric Xing, president of MBZUAI, told AFP.
“And also difficult to achieve if you solely rely on importing and external… technical transfer.”
Chips ahoy
In the race for AI market share, the UAE is in the chasing pack behind the US and China, the clear leaders. But the small, desert country has its advantages, chiefly money and energy.
With oil, gas and year-round sun for solar power, it can quickly build electricity stations to feed data centres — a major obstacle elsewhere.
And as the region’s business hub, with a population that is nearly 90% expatriate, the UAE has the edge compared to other nations in the region.
All the while, the UAE has engaged in a balancing act between the US and China as it seeks imports vital for AI, including the specialist chips that make data centres work.
Last month, intense lobbying bore fruit when the US approved the export of advanced Nvidia chips to both the UAE and Saudi Arabia.
“They (UAE) clearly don’t want to be dependent on China, but that doesn’t mean they want to depend on the US either,” said Gagne.
But despite its progress and years of heavy investment, success in this complex, ever-changing sector is far from guaranteed.
“Right now, we don’t know what the right strategy is, or who the good players are,” Gagne said.
“Everyone is betting on different players, but some will lose, and some will win.”
Politics
India let Iran warship dock the day US sank another off Sri Lanka, say officials

India has allowed an Iranian warship to dock as a humanitarian gesture, Foreign Minister Subrahmanyam Jaishankar said on Saturday, after the US sank another Iranian navy vessel off neighbouring Sri Lanka.
The Lavan docked at India’s southern port of Kochi on Wednesday, the same day the US submarine struck Iranian navy frigate Dena, after an urgent request from Tehran, an Indian government source told Reuters.
US President Donald Trump has said destroying the Iranian navy is one aim of the war he and Israel launched against the Islamic Republic a week ago.
The Lavan – an amphibious landing vessel, according to the US Naval Institute’s online news site – and two other ships “were coming in for a fleet review and then they got, in a way, caught on the wrong side of the events,” Jaishankar told the annual Raisina Dialogue event.
“I think we really approached it from the point of view of humanity, of other than whatever the legal issues were,” he said. “I think we did the right thing.”
At least 87 people were killed in the US attack on the Dena in Sri Lanka’s exclusive economic zone, 19 nautical miles off the coast, outside its maritime boundaries.
India received the docking request for the Lavan on February 28, the day the Iran war started, the source said late on Friday, adding that the request “was urgent as the vessel had developed technical issues”.
Its 183 crew members have been accommodated at naval facilities in Kochi, said the source, who asked not to be identified citing confidentiality.
The Dena was on its way back from a naval exercise organised by India, according to the drill’s website and Sri Lankan officials.
Sri Lankan authorities said on Friday that they were escorting the Iranian naval ship Booshehr to a harbour on the eastern coast and moving most of its crew to a navy camp near Colombo.
Politics
Nepal’s rapper-mayor Balendra Shah poised to become prime minister

- Shah’s popularity driven by social media and youth connection.
- RSP party’s manifesto promises job creation and economic growth.
- Final results covering 165 seats decided by direct vote expected within days.
After Nepal’s historic youth-led uprising last September killed 77 people and forced then-Prime Minister KP Sharma Oli to resign, a 35-year-old rapper-turned-politician posted a typically terse message to millions of followers on social media.
“Dear Gen Z, the resignation of your killer has come,” Balendra Shah — popularly known only as Balen — wrote. “Now your generation will have to lead the country. Be prepared.”
Five months on, the musician who cut his political teeth in 2022 when he became the mayor of the capital Kathmandu, is poised to become Nepal’s next prime minister following the country’s first election since the September uprising.
Shah’s Rastriya Swatantra Party (RSP) was leading in around 100 seats, far ahead of its main rivals, early counting trends from the election commission showed on Friday.
Final results, covering 165 seats decided by direct vote and 110 through proportional representation, are expected within days.
The Nepali Congress, currently in second place, has already conceded defeat, and analysts said the RSP’s dominant showing means it will likely form the next government.
“Balen Shah is so popular that now buses coming to Kathmandu have stickers on them saying, ‘Headed to Balen’s city'”, said Bipin Adhikari, a constitutional law expert who teaches at Kathmandu University.
If Shah is able to take power, it would cap a dramatic rise for a man who entered the public spotlight with rap music critical of the establishment and parleyed his popularity to ascend to high political office.

It would also potentially reshape the politics of Nepal, a small Himalayan nation wedged between China and India, that has long been dominated by a handful of established parties.
‘Not a cakewalk’
Some of Shah’s nationwide appeal is driven by the work he has done as the mayor of Kathmandu, where he focused on improving the urban infrastructure, such as waste management, and ensuring the delivery of services like healthcare.
He has also faced criticism, including from Human Rights Watch, for allegedly using police to seize the properties of street vendors and landless people.
Shah — who resigned as mayor in January to contest the general election — did not respond to requests for an interview and questions from Reuters sent via email.
Unlike much of Nepal’s political elite comprising veterans from older generations, Shah has made it a habit to largely shun the mainstream press.
Instead, it is his prolific social media presence, with over 3.5 million followers on platforms like Facebook, that enables him to connect directly with young Nepalis.
“What makes Balen special is that he stays connected with the youth through his short messages on social media, but it would not be a cakewalk for him after becoming prime minister,” said independent political analyst Puranjan Acharya.
‘Let me speak’
Born to a father who practiced traditional Ayurvedic medicine and a homemaker mother, Shah showed an early inclination towards poetry that evolved into a love of rap music, influenced by American artists including Tupac Shakur and Curtis “50 Cent” Jackson, according to an aide.

After securing an undergraduate degree in civil engineering in Nepal, Shah went on to study for a master’s degree in structural engineering in southern India — by which time he had already emerged as a rap star in his home country.
His songs, often taking on Nepal’s ruling class, struck a chord with many in a country where about 20% of the 30 million population live in grinding poverty.
Released in 2019, one of Shah’s best-known songs, “Balidan” — or sacrifice in the Nepali language — has over 12 million views on YouTube.
Its lyrics read:
“Let me speak, sir, it is not a crime,
Let me open the mind, I am not a curse to the palace,
My mind is not bad, it is not afraid to speak the truth.”
‘Wood attacked by termites’
Last December, Shah joined the RSP, led by former TV host-turned-politician Rabi Lamichhane, as its prime ministerial candidate.

In its manifesto, Shah’s RSP has vowed to create 1.2 million jobs and reduce forced migration, in an effort to tap into frustration over unemployment and low wages that have pushed millions of Nepalis to search for work overseas.
The party has also pledged to raise Nepal’s per capita income from $1,447 to $3,000, more than double the nation’s economy to $100 billion GDP and provide safety nets such as healthcare insurance for the entire population — all within five years.
At the national level, analysts foresee that if he is elected, much of Shah’s success will depend on the talent he surrounds himself with to overhaul a moribund administrative system, riven by corruption.
“It needs a team, experts and support,” Acharya said, “Under the existing state apparatus, he can’t perform and he will be finished like wood attacked by termites.”
Politics
India under fire after US says it ‘allowed’ Russian oil purchases

- US grants India 30-day Russian oil waiver.
- Congress says Washington dictates India’s oil choices.
- Tamil Nadu CM questions India seeking foreign approval.
KARACHI: India’s Narendra Modi-led government has come under renewed criticism from opposition parties and sections of the public after the United States said it had temporarily allowed Indian refiners to buy Russian oil stranded at sea, The News reported.
The criticism centres on a statement by US Treasury Secretary Scott Bessent, who said in a post on X early Friday that the Treasury Department was issuing a 30-day waiver to allow Indian refiners to purchase Russian oil in order to keep oil flowing into the global market.
Opposition parties argued that the move made India appear dependent on Washington’s approval. In a post on X, the Congress party said the Modi government had led the country “to a situation where the United States is now deciding where India can buy oil from and where it cannot”.
The waiver, which the US Treasury Secretary Scott Bessent said was issued to “enable oil to keep flowing into the global market,” comes under heightened tensions in the Middle East following the US-Israeli attack on Iran, sparking uncertainty around oil.
It should be noted that India had earlier said it would stop purchasing Russian oil as part of a trade deal with the US.
MK Stalin, chief minister of the southern state of Tamil Nadu, questioned why India should appear to seek approval from any foreign government to meet its energy needs.
“Equally troubling is the sinking of the unarmed Iranian warship IRIS Dena by the United States soon after it participated in the International Fleet Review 2026 naval exercise hosted by India in Visakhapatnam. When a ship that came to India as part of a multinational exercise meets such a fate, India cannot appear silent or passive,” he added.
Bessent further added, “This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorises transactions involving oil already stranded at sea. India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of US oil. This stop-gap measure will alleviate pressure caused by Iran’s attempt to take global energy hostage.”
Journalist Rana Ayyub added with America’s permission, “we now sound like an American colony”.
India was the top buyer of Russian seaborne crude after Moscow’s 2022 Ukraine invasion, but in January its refiners started to reduce purchases under pressure from Washington. Cutting Russian oil purchases helped New Delhi avoid 25 per cent tariffs and clinch an interim trade deal with the US.
India is vulnerable to energy supply shocks, with crude stocks covering only about 25 days of demand. India receives about 40% of its oil imports from the Middle East through the Strait of Hormuz.
According to The Guardian, which quoted Reuters, a source directly involved with the matter said India had approached Trump’s administration seeking approval to buy Russian crude imports because of the Iran conflict.
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