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The Kingdom of Saudi Arabia is planning a massive infrastructure push to achieve net-zero carbon emissions by 2060, with a significant portion of financing expected to come from the private sector. Investment Minister Khalid Al-Falih, speaking at the MOMENTUM2025 Development Finance Conference in Riyadh, projected that infrastructure investments could reach up to $1 trillion over the medium term, with private capital accounting for around 40 per cent — equivalent to $400-500 billion.

Al-Falih outlined that this influx of investment will be channelled across diverse programmes: privatisation schemes, energy infrastructure under the supervision of the Ministry of Energy, and major initiatives led by key domestic players such as ACWA Power and Saudi Aramco, including expansion of blue hydrogen production and global marketing. The minister emphasised that the push reflects the Kingdom’s evolving infrastructure and energy strategy — aligning economic diversification under Saudi Vision 2030 with climate-related commitments.

Officials at the conference stressed that the investment liquidity will flow through multiple channels. Besides large-scale energy and infrastructure projects, capital will also support expansion in sustainable tourism, desalination plants, airport and logistics development, and logistics hubs, boosting sectors beyond oil and traditional energy. This drive is underpinned by a broader green finance framework recently introduced by domestic regulators, including the issuance of green bonds and the creation of a domestic carbon-credit market under Tadawul.

Despite the ambitious plan, some observers remain cautious. Independent analysts — such as those at the Climate Action Tracker — rate the Kingdom’s net-zero pledge for 2060 as “poor”, noting that the target lacks legal codification and fails to clarify which greenhouse gases or sectors are included. They underline that while domestic investments in renewables, carbon capture and clean hydrogen are growing, the lack of a comprehensive emissions-reduction pathway — especially regarding export-related emissions — leaves a significant portion of emissions unaddressed.

Al-Falih acknowledged the challenges but framed the plan as a transformation rather than a short-term campaign. He pointed out that the Kingdom has already exceeded some Paris Agreement-linked targets, and underlined an energy mix strategy aiming for 50 per cent of electricity generation through renewables by 2030, supplemented by high-efficiency gas turbines and storage technologies to ensure reliability.

As global demand for energy continues to rise — driven in part by rapid advances in artificial intelligence and digital infrastructure — Riyadh’s roadmap envisages that growing energy needs will dovetail with sustainable investment in infrastructure, industrial transformation and green-energy exports.

Microsoft has committed $17.5 billion — roughly Rs 1.5 lakh crore — to expand cloud and artificial-intelligence infrastructure in India, marking its largest investment ever in Asia. The announcement came after a meeting between Microsoft chief executive Satya Nadella and Prime Minister Narendra Modi in New Delhi. The funds will flow over the next four years, aimed at building data-centre capacity, upskilling the workforce and strengthening what the company calls “sovereign AI capabilities.”

Under the plan, Microsoft will significantly expand its cloud infrastructure footprint across several Indian states. A new hyperscale data-centre in Hyderabad is expected to go online by mid-2026, complementing existing facilities in Chennai, Pune, Mumbai, along with the company’s Jio-Azure regions in Maharashtra and Gujarat. The investment builds on a $3 billion commitment earlier this year — an amount that had already positioned India as a major node in Microsoft’s global AI ambitions.

Skill-development forms a core pillar of the strategy. The company aims to train millions of Indians in AI and related domains, equipping a growing workforce to design, manage and deploy advanced AI systems. Nadella described the investment as central to India’s “AI-first future,” emphasizing the need for both infrastructure and human capital to realise such a vision.

Industry analysts view the commitment as a signal that multinational technology firms increasingly see India not merely as a consumer market, but as a global hub for cloud and AI development. The scope and scale of Microsoft’s investment reflect a broader shift in the global tech landscape, where companies are betting on India’s large internet-user base and technical talent pool. The move could also encourage other global players to escalate investments, accelerating the pace at which India becomes a major node in the emerging AI economy.

Government officials welcomed the announcement as a boost to India’s ambition to emerge as a technology superpower. As Modi noted after the meeting, global optimism around India’s AI potential is growing — and the new investment is expected to create significant opportunities across industries, particularly for start-ups and youth seeking to build careers in cutting-edge technologies.

The size and ambition of Microsoft’s commitment also suggest that the company expects robust returns from a nation undergoing rapid digital transformation. By combining massive infrastructure build-out with aggressive talent development, Microsoft appears to be laying the groundwork for India to play a central role in shaping the next generation of global AI products and services — from cloud-native applications to enterprise-level AI deployments.

India stands out among emerging economies for its high adoption of generative artificial intelligence, according to a new report by Organisation for Economic Co-operation and Development together with Cisco. The study shows that India, along with a few other emerging markets, leads global usage and trust metrics — even as sharp generational and geographical divides become evident.

Under-35s represent the bulk of this surge, with more than half of that demographic reporting active use of generative AI tools. Over 75 percent of young adults across the studied countries say they find AI useful. In India specifically, the share of adults actively using generative AI has been estimated at 66.4 percent, making the country the top performer among the 14 surveyed nations.

The appeal of AI appears to be shaped not only by age, but also by regional context. Emerging economies — India, Brazil, Mexico and South Africa — feature among the highest users globally, showing not only strong AI uptake but also greater eagerness to undertake AI-related training. In these countries, engagement with AI training programmes is broad, and a substantial number of respondents have expressed plans to deepen their familiarity with AI tools over the coming year.

However, this fast-paced adoption brings warnings of uneven benefits and rising risks. Populations in these emerging economies report significantly higher levels of recreational screen time and digital-only social interaction — patterns correlated with lower life satisfaction and well-being. The OECD-Cisco report warns that over five hours of daily screen time for leisure is linked to deteriorating well-being.

The divides cut deep: while younger adults readily embrace AI, older age groups remain largely disengaged. Among those over 45, many say they either do not use AI or are uncertain about trusting it. This uncertainty, according to the study, may stem more from unfamiliarity than explicit distrust. Expectations about AI’s impact on work also diverge sharply — under-35s in emerging economies overwhelmingly anticipate that AI will reshape job roles, while older respondents are more sceptical.

The findings challenge assumptions that advanced economies would lead in AI adoption, reflecting instead a reversal where developing nations leapfrog into new technologies. The data underscores how infrastructural improvements, rising digital literacy among younger generations, and perhaps lower legacy technology constraints are accelerating AI uptake in countries such as India.

Qatar and the United States have moved to cement their military cooperation with high-level commitments that signal a recalibration of regional security dynamics. The Qatari Prime Minister and Foreign Minister, Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani, met with the Commander of the US Central Command, Admiral Charles Bradford Cooper, to discuss expanding bilateral defence cooperation. The talks pointed to broad agreement on enhancing joint military readiness, intelligence sharing and coordination on regional security challenges.

The defence discussions follow a backdrop of heightened tensions after an airstrike on Qatari territory by Israel targeting Hamas political leaders. The strike led to strong condemnation across Gulf states and sparked a broader reassessment of the security framework anchoring US presence in the Gulf. The United States responded by reaffirming its commitment to Qatar’s sovereignty.

An executive order signed by US leadership has committed Washington to defending Qatari territory and infrastructure if subjected to external attack, including by military means if necessary. This formal guarantee elevates Qatar’s strategic importance in the US security architecture.

Concurrently, Washington and Doha have arranged deeper integration of military infrastructure. An agreement has been finalised to build a facility at a US Air Force base in Idaho to host a contingent of Qatari F-15QA fighter jets and associated personnel. The facility aims to enhance combined training, preparedness and interoperability under US command — though ownership and command remain US-controlled, eliminating concerns about a permanent foreign base on US soil.

These developments follow multiple engagements aimed at strengthening mutual defence ties. The November meeting between the Qatari Prime Minister and CENTCOM’s commander underscored mutual interest in “support and strengthen” shared strategic goals in defence domains.

Observers interpret this phase as part of a broader US strategy to reinforce alliances in a volatile Middle East. The enhanced cooperation offers Qatar increased security assurances and greater leverage in regional diplomacy, while offering the US a more secure and integrated network of partnerships to project influence and stability. Critics, however, warn that such deepening military ties may further entangle Gulf states in US-led strategic rivalry and increase regional polarization.

Saudi Arabia’s sovereign wealth fund is seeking to deepen ties with Japanese investors as it reshapes its investment strategy away from sprawling real-estate megaprojects toward sectors deemed more viable in the near term.

The Public Investment Fund, valued at roughly $925 billion, unveiled a plan to expand investments in Japan from $11.5 billion between 2017–2024 to a projected $27 billion by 2030, according to remarks by its governor, Yasir Al-Rumayyan, at a business summit in Tokyo. He described Japanese companies as “one of the largest partners for Saudi Arabia,” and said the kingdom hopes to “bring more and more Japanese companies” on board.

This outreach comes alongside a major overhaul of PIF’s priorities. Plans for large-scale real estate ventures—previously central under the Vision 2030 plan—are being put on the back foot as delays and write-downs erode investor confidence. The new strategy pivots toward sectors such as logistics, mineral extraction, religious tourism and artificial intelligence, with greater emphasis on data infrastructure and industries promising quicker returns.

Some megaprojects under Vision 2030, including the much-publicised desert city NEOM and a planned mountain-based winter sports hub, have faced repeated delays and mounting costs, prompting analysts to question their long-term viability. PIF’s 2024 annual report shows impairments on several high-profile investments that have weighed on returns, and strategic rebalancing appears aimed at stabilising the fund’s financial outlook.

The renewed focus on logistics underscores Saudi Arabia’s ambition to become a global supply-chain hub bridging Asia, Europe and Africa. Mineral extraction targets the kingdom’s considerable reserves of rare earths and critical minerals, seen as vital for future technology supply chains. Religious tourism aims to leverage steady demand for pilgrimage to holy sites, while investments in artificial intelligence and data infrastructure, led by PIF-backed firm Humain, reflect the kingdom’s drive to build a diversified economy beyond hydrocarbons.

Financial markets and global investors have welcomed the pivot as more pragmatic and potentially less risky than monumental real-estate bets. Yet critics caution that shifting to more conventional sectors may diminish the transformative potential originally promised under Vision 2030. The challenge now lies in whether the new strategy can deliver on its growth and diversification goals while restoring investor confidence.