UAE Central Bank and Core42 Launch World’s First Sovereign Financial Cloud
ABU DHABI, UAE – February 26, 2026 — The Central Bank of the UAE and Core42, a G42 company, announced a partnership to develop the Sovereign Financial Cloud Services Infrastructure. The initiative establishes a secure, AI-powered platform designed to ensure data sovereignty and operational resilience for licensed financial institutions across the UAE. The infrastructure positions the nation as a global hub for innovative financial services while addressing growing cybersecurity and data localization requirements.
Announcement Specifics
The CBUAE and Core42 signed an agreement to build the SFCSI under the Financial Infrastructure Transformation programme. The dedicated and isolated infrastructure leverages advanced AI and analytics to support real-time data processing, intelligent automation, enhanced decision-making capabilities, and unified multi-cloud management for operational efficiency. Specific timelines and transaction volumes remain undisclosed.
Stakeholder Perspective
“The national sovereign financial cloud services infrastructure marks a strategic step in strengthening the UAE’s financial resilience and technological leadership.”
— Saif Humaid Al Dhaheri, Assistant Governor, Central Bank of the UAE
Why it matters: This statement underscores the platform’s dual mandate to safeguard national financial interests while maintaining competitive positioning amid escalating cyber threats and regulatory pressure for data localization across global markets.
Industry Context
Sovereign cloud solutions are experiencing accelerated adoption in financial services globally, driven by heightened data sovereignty requirements and cybersecurity concerns. The UAE’s SFCSI represents the world’s first sovereign financial cloud infrastructure, distinguishing itself through integrated AI capabilities that enable predictive analytics and automated compliance functions. The UAE sovereign cloud market is expanding at a 22.7% CAGR, reflecting strong institutional demand for isolated environments that eliminate foreign data custody risks inherent in public cloud architectures.
The infrastructure strengthens Dubai and Abu Dhabi’s status as premier regional financial centers, creating competitive advantages over emerging hubs. By offering financial institutions secure, locally-governed cloud infrastructure, the SFCSI removes a primary barrier to digital transformation initiatives. The platform is expected to accelerate adoption of digital payments, AI-driven risk analytics, and automated regulatory reporting across the UAE banking sector.
Conclusion
The Sovereign Financial Cloud Services Infrastructure will transform UAE financial services through secure, AI-enabled technology infrastructure. Rollout to licensed financial institutions will drive competitiveness, support fintech innovation, and contribute to long-term economic growth objectives.
Sources: Zawya, Central Bank of the UAE, The National News, Gulf News
