Core42 Driving UAE’s Sovereignty-First Cloud and Digital Transformation Strategy

As the global race for digital sovereignty intensifies, the UAE is moving decisively to cement its position as a leader in secure cloud infrastructure and advanced technologies. At the forefront of this effort is Core42, whose Sovereign Public Cloud is enabling government entities and regulated industries to innovate while meeting the highest standards of compliance and data security.

Speaking to Gulf Business, Mohammed Retmi, Vice President of Sovereign Public Cloud at Core42, explained how sovereign infrastructure is underpinning the UAE’s vision to become a global hub for technological leadership. “A sovereign cloud provides organisations with a trusted foundation to innovate confidently, offering built-in controls, localised data residency, and adherence to national and sector-specific regulations,” Retmi said.

The country has already taken bold steps to embed digital sovereignty into its national strategy. Initiatives include the creation of the UAE Artificial Intelligence and Advanced Technology Council, the launch of the National Strategy for Artificial Intelligence 2031, and the rollout of the UAE AI Charter and Personal Data Protection Law. These frameworks ensure that innovation is matched with clear governance and ethical oversight.

This approach is reinforced by large-scale infrastructure investments such as hyperscale national data centres and sovereign platforms developed in partnership with global technology providers like Microsoft. Core42’s Sovereign Public Cloud, built on Microsoft Azure and enhanced with localised oversight through its Insight controls platform, already serves more than 50 customers across high-impact sectors, from banking and healthcare to energy and government services.

The model is proving transformative. In finance, major players such as First Abu Dhabi Bank have migrated core banking workloads to sovereign infrastructure, boosting agility and compliance. In healthcare, patient data is securely analysed for diagnostics and population health management, while in energy, companies are deploying advanced analytics to drive sustainability and predictive maintenance.

Government services are also being reshaped. Abu Dhabi’s Department of Government Enablement is using the Sovereign Public Cloud to migrate over 47 entities, supporting its goal of becoming the world’s first fully AI-native government by 2027. The platform is already powering more than 11 million daily digital interactions.

Retmi stressed that strong regulations and rapid innovation can work hand in hand, with sovereign cloud acting as the bridge. By removing uncertainty around compliance, organisations can focus on deploying new technologies at speed and scale. “This gives enterprises the confidence to attract investment and deliver services that meet the highest standards of trust, performance, and compliance,” he said.

With the global sovereign cloud market projected to quadruple in value by 2028, the UAE’s blueprint is being closely watched. By embedding sovereignty into its economic and technology infrastructure, the nation has demonstrated how digital independence can serve as both a shield and a catalyst—strengthening resilience, attracting talent, and driving long-term competitiveness.