Bhutan’s Bridge to the Future: Ujjwal Deep Dahal on Innovation, Sustainability, and Regional Collaboration
DHI, along with its portfolio companies, currently contributes approximately 40% of the Government’s revenue and around 30% of the national GDP—growth that has traditionally been driven by the Hydropower and Natural Resources sectors. While we will continue to invest in these areas, DHI, with its 10X Strategy, is working towards fostering a shift toward building a corporate culture rooted in five core principles: (i) innovation, (ii) boldness and a growth mindset, (iii) coaching and collaboration, (iv) agility and focus, and (v) accountability. To support this transformation, DHI is realigning its operations through three key strategies: a revised Portfolio Management Strategy to enhance operational efficiency, an Investment Strategy to expand into new and emerging industries, and an Innovation Strategy to unlock future value through technology and entrepreneurship. These initiatives align with the rapidly evolving nature of the external environment and retain focus on the national vision of achieving High-Income Nation status by 2034 and leveraging technology and a growth mindset fostered by the vision of Gelephu Mindfulness City (GMC).
The proposed transformative strategy - The DHI’s 10X Strategy towards meeting the aspiration of the DHI’s Royal Charter built on the three core pillars of "Portfolio Management, Investment, and Innovation Strategies, is designed to drive sustainable growth and economic transformation. These pillars are supported by foundational strategies including a Financing Strategy to secure sustainable funding for its ambitious investments, a Technology Strategy to integrate cutting-edge solutions for operational excellence and global competitiveness, a Human Talent Strategy to attract, nurture and retain skilled talent through capacity building, leadership selection and development, and knowledge-sharing and four Centers of Excellence (CoE). Together, these strategies align to propel DHI toward its 10X Revenue Journey and contribute to Bhutan’s aspiration of becoming a high-income nation by 2034 and the 10X GDP plan of the Royal Government of Bhutan.
2. As the CEO of DHI, what are the most significant challenges you face in balancing Bhutan’s traditional values with the demands of a rapidly evolving global economy?A fundamental aspect of Bhutan’s development strategy has always been ensuring that economic growth harmonizes with its rich cultural heritage, good governance and environmental conservation as also guided by the philosophy of Gross National Happiness. As the nation advances through innovation and technology, it remains essential to uphold its core values, ensuring that progress enhances and makes Bhutan resilient in all aspects, rather than disrupting Bhutan’s unique identity and social well-being.
Bhutan's economic growth has always been shaped by its geographical, demographic, and connectivity challenges—both digital and physical. While these factors may limit certain business opportunities, they also present unique advantages. The global shift toward a digital economy, coupled with Bhutan’s strategic location near high-demand markets and high human talent, creates significant potential. Historically, advancements in energy and computing have enabled nations to leap ahead economically. Bhutan is well-positioned to capitalize on this by investing in green energy and data computing, aligning with the AI-driven future. While these may be short to medium anchor industries, investing in future industries through our Investment and Innovation strategy of the 10X Strategy with global partners is core to our strategy of evolving to an innovative and sustainable economy. With the Gelephu Mindfulness City (GMC) serving as a gateway to South and Southeast Asia, DHI has a unique opportunity to play a key role in shaping the next-generation economy creating meaningful jobs of the future.
3. DHI’s investment strategy emphasizes linking energy and computing to the future global economy. Can you elaborate on how this strategy is diversifying Bhutan’s economic portfolio and creating new opportunities for growth?DHI’s investment strategy focuses on five specific areas viz. (i) Energy and Resources, (ii) Mining and Minerals, (iii) Infrastructure (Physical, Financial and Digital), (iv) Manufacturing and Services, (v) Digital Assets and Global Securities. The manufacturing sector is based on the philosophy of “Low Volume High Value” including integrating energy and computing to position Bhutan as a key player in the global economy through the 5 areas of investment focus. By creating a sustainable and diversified green energy plan, DHI aims to strengthen national energy security and drive industrial growth. The strategy centers on leveraging Bhutan’s abundant hydropower resources to support high-value, energy-intensive industries like digital infrastructure and cloud computing.
We seek to transition to a greener future through a green portfolio hybrid energy model, incorporating a mix of renewable technologies—such as hydro, solar, geothermal, and wind, pumped storage, Hydrogen, and any promising green energy technology—along with cutting-edge energy solutions, including grid-scale batteries and exploring Natural Hydrogen potential. This integrated energy plan is designed to fuel the growth of new industries, particularly in technology, by providing sustainable energy solutions for sectors like AI, big data, and blockchain apart from strategizing with strategic partners in industries on sustainable mining and minerals and exploring value chain industry in semiconductors.
Additionally, we are developing strategies to invest in energy-efficient infrastructure in collaboration with global partners, such as green AI data centers, to attract global businesses seeking cost-effective and eco-friendly computing power. This strategy helps reduce Bhutan’s diversification of industries beyond traditional industries while positioning the country as a hub for eco-friendly digital economies. The focus on technology-driven industries not only diversifies Bhutan's economic base but also opens new opportunities for global competitiveness and high-skilled job creation, particularly in industries leveraging next generation technologies and largely in STEM fields, empowering Bhutanese talent to participate in building a knowledge-based economy. 4. Bhutan is transitioning toward a science, technology, and innovation-driven economy. What role does DHI play in fostering this transition, and how do you see Bhutan competing globally in these sectors?DHI plays a central role in Bhutan’s transition toward a science, technology, and innovation-driven economy with its Innovation Strategy -creating a robust national innovation ecosystem for a start-up economy. The organization is focused on creating an environment that supports the growth of next-generation entrepreneurs and fosters private sector development. Through strategic investments and collaborations with global innovators, startups, and academic institutions, DHI aims to stimulate innovation and build products and services of value collaboration with global partners
The national innovation ecosystem, driven by DHI, is structured around three key components: Drivers - DHI InnoTech and GovTech, offering policy and technical support; Facilitators, - the Jigme Namgyel Wangchuck Super Fab Lab and the Fundamental R&D Center, providing creative spaces for research and development; and Enablers, - Multi-Channel Innovation Fund, which provides financial backing for startups at various stages. This framework connects local and global innovators, enabling Bhutan to scale its technological advancements and attract international partners and investors. 5. Bhutan is globally renowned for prioritizing Gross National Happiness (GNH) over Gross Domestic Product (GDP) as a measure of progress. How do you see the relationship between economic growth (GDP) and holistic well-being (GNH) evolving in Bhutan, especially as the country embraces technological advancements and global economic integration?The relationship between economic growth (GDP) and holistic well-being through the lenses of GNH in Bhutan is evolving as the country integrates technology, innovation, and global economic trends into its development strategy. While GDP is important for national prosperity, Bhutan is committed to ensuring that economic growth aligns with the principles of GNH, which prioritize environmental conservation, preservation and promotion of culture and good governance towards sustainability, and inclusivity over financial metrics alone.
As Bhutan continues to develop, it faces the challenge of balancing immediate priorities with long-term goals. However, through bold initiatives like the Royal Vision of the Gelephu Mindfulness City (GMC) and a transformative approach to governance and enterprise development, Bhutan is moving beyond conventional economic models. At Druk Holding and Investments Ltd. (DHI), we are focused on positioning the country for a future-ready economy through our 10X Journey strategy, leveraging Bhutan's unique strengths and strategic location to unlock new opportunities while maintaining a strong commitment to GNH values.
6. With your expertise in smart grids and cities, how is DHI contributing to the development of Bhutan’s digital and physical infrastructure to support a modern, competitive economy?DHI is playing a pivotal role in positioning Bhutan for sustainable, long-term growth by focusing on both physical and digital infrastructure. In a developing country like Bhutan, modern infrastructure is crucial for economic progress, but the challenge lies in balancing immediate needs with strategic long-term investments. DHI, as the government’s investment arm, is committed to prioritizing investments that foster technological advancements, business opportunities, and global connectivity.
One of DHI's key efforts is the development of the Phuentsholing township, which aims to support economic growth in key urban areas. Additionally, transportation infrastructure plays a central role in driving economic progress. With Bhutan's rich green energy potential and the need to reduce reliance on fossil fuels, DHI plans to strategize next-generation transportation systems as a strategic priority to develop a roadmap. The roadmap would focus on creating next generation multi-modal transportation networks. On the digital front, DHI is advancing Bhutan's digital infrastructure to support the growing tech-driven economy. With the rise of AI, 5G, and green energy solutions, DHI is laying the groundwork to discuss with partners in creating AI-powered data centers and high-performance computing capabilities in Bhutan.
Starlink services are now available in Bhutan in 2025, marking a significant step toward building a robust digital infrastructure. These efforts are part of a larger initiative to ensure reliable internet connectivity and foster a digital economy, including innovations like Fiber to the Home (FTTH) and IoT systems. As part of DHI’s 10X Journey, the strategy will focus on enhancing last-mile connectivity through FTTH, advanced wireless technologies, and next-gen 5G standards, while driving digital innovation and building a thriving IoT ecosystem.
By combining forward-thinking infrastructure plans in both transportation and digital connectivity, we feel that a solid foundation for future economic growth and positioning Bhutan as a global player in sustainable development and technology innovation
7. As a representative of Bhutan, how do you see DHI collaborating with other SAARC nations to drive regional economic growth, particularly in areas like energy, technology, and infrastructure?We welcome opportunities to collaborate with investors and strategic partners across the SAARC region as part of our 10X Journey. Through our Innovation and Investment strategies, we aim to co-create transformative ventures that align with national priorities, unlock regional synergies, and drive inclusive economic growth. DHI is committed to fostering an ecosystem that enables sustainable development and shared prosperity across South Asia.
8. What opportunities do you see for cross-border investments between Bhutan and other SAARC countries, and how can DHI facilitate stronger economic ties within the region?Among the many investment opportunities, green energy stands out as a key area of interest. This includes investments in hydro, solar, grid-scale batteries, geothermal, wind, hydrogen, and emerging clean energy technologies that align with our commitment to a sustainable and future-ready energy ecosystem.
9. What are the biggest challenges SAARC nations face in achieving economic integration, and how can organizations like DHI play a role in addressing these challenges?I would suggest fostering more business-to-business dialogue in areas such as energy, technology, innovation, and the start-up ecosystem. These discussions should focus on building vibrant collaborations and piloting proof-of-concept initiatives that can drive entrepreneurship and create a thriving business platform.
10. Can you share more about the Super Fab Lab and its role in fostering innovation and manufacturing capabilities in Bhutan? How does this initiative contribute to DHI’s long-term goals?The Jigme Namgyel Wangchuck Super Fab Lab (JNWSFL), established in partnership with MIT Cambridge, plays a pivotal role in fostering innovation and advancing manufacturing capabilities in Bhutan. The lab serves as a key facilitator within the broader InnoTech ecosystem, with a focus on bridging global and local innovators, academicians, and startups. The lab is uniquely positioned to drive applied and fundamental research across various cutting-edge fields, including aerospace, IoT, AI/ML, robotics, blockchain, and more. Through collaborations with DHI’s Strategic Technology Planning (STP) and Research and Innovation Venture Excellence (DRIVE) teams, JNWSFL is not only developing proof of concepts (PoCs) but also testing them across DHI’s 24 companies, ensuring that these innovations have real-world applications.
One of the core strengths of the lab is its ability to translate innovations into tangible products and services that can be tested and scaled locally, with the support of GovTech, and eventually globally. This ensures that Bhutan’s technological innovations can contribute both to the national economy and to the global marketplace, positioning Bhutan as an emerging player in the tech-driven economy. The idea is to use the InnoTech ecosystem and GovTech and the JNWSFL as the Drivers and Enablers establishing the Facilitator through the Tech Fund in bridging the global and local Innovators, Academicians, and Start-Ups to create the Bhutanese Innovation Ecosystem for a start-up economy.In line with DHI’s long-term goals, the Super Fab Lab helps build Bhutan's capacity in advanced manufacturing and technology-driven industries, positioning the country as a hub for next-generation products and services. The lab will also attract external experts in fields such as quantum computing and digital biology, expanding Bhutan's expertise in high-tech sectors. As a result, JNWSFL is not just a research and innovation center; it is a launchpad for a sustainable start-up economy in Bhutan, enabling local talent to drive global innovations. Ultimately, this initiative aligns with DHI’s vision of fostering a knowledge-based economy, driving economic diversification, and positioning Bhutan at the forefront of technological advancement.
11. As an advocate for technology and innovation, how do you see digital transformation and AI shaping Bhutan’s future, particularly in addressing societal challenges and building a sustainable economy? Could you share specific initiatives DHI is undertaking in this space, and how these technologies align with Bhutan’s unique values and Gross National Happiness (GNH) principles?The Innovation Strategy of DHI’s 10X Journey provides a framework for us to work to build “Innovation” as a pillar of Bhutanese economy.
Digital transformation and AI are poised to significantly shape our future addressing societal challenges while building a sustainable and inclusive economy. As an advocate for technology and innovation, we recognize the potential of AI and digital transformation to drive progress in key areas such as productivity, economic diversification, and improving the quality of life for Bhutan’s citizens. These technologies align well with Bhutan’s unique values and the principles of Gross National Happiness (GNH), ensuring that economic growth is balanced with social and environmental well-being.
One of DHI’s core initiatives is its AI-driven innovation and automation strategy, designed to unlock new opportunities while enhancing operational efficiency. By leveraging AI for predictive analytics, we gain valuable insights into consumer behavior, market trends, and data-driven decision-making that inform both policy and business strategies. This allows the organization to anticipate market shifts and proactively optimize its portfolio, fostering a resilient and adaptive economy.
We are also intentionally focusing on technology and innovations that are resilient, affordable, and sustainability driven. At the heart of this philosophy is the belief that technology should be used to address the challenges faced by underserved communities around the world. We recognize the immense potential of technology for the greater good of the planet. Our R&D and project portfolio includes the application of AI, IoT, blockchain, and other cutting-edge technologies to advance sustainable practices in areas like energy, water management, and sustainable farming.
12. What advice would you give to young professionals in South Asia who aspire to lead organizations that drive economic growth and innovation while staying rooted in their cultural values?Let us stay curious, remain grounded, and lead with empathy; innovation thrives when we create an open environment for ideas to flow, responding to local needs with a global perspective. We need to have an Open, Agile, and a Growth Mindset and explore possibilities of the future provided by the exponential growth of science and technology.