Microsoft has announced a $15.2 billion investment in the United Arab Emirates (UAE) through 2029, reflecting its commitment to accelerating artificial intelligence (AI) innovation, cloud infrastructure, and digital skills in the country.
The announcement coincides with major energy and technology conferences in Abu Dhabi and Dubai this week and highlights Microsoft’s growing partnership with the UAE’s sovereign AI company, G42.
The investment, which began in 2023, is focused on three key pillars – technology, talent, and trust. It represents spending within the UAE, not capital raised locally, and aims to strengthen the nation’s position as a global AI hub while deepening U.S.-UAE cooperation in technology and innovation.
Expanding AI and cloud infrastructure
Between 2023 and the end of 2025, Microsoft will have spent more than $7.3 billion in the UAE. This includes a $1.5 billion equity investment in G42, over $4.6 billion in capital expenditures for AI and cloud data centers, and $1.2 billion in local operations and goods. From 2026 through 2029, Microsoft plans to spend another $7.9 billion, including $5.5 billion in additional infrastructure expansion and $2.4 billion in operational costs.
A major part of Microsoft’s investment involves bringing advanced AI technology and computing resources to the UAE. The company secured export licenses from the U.S. Commerce Department to ship GPUs to the country, enabling deployment of Nvidia A100, H100, H200, and GB300 processors. These GPUs will support Microsoft’s Azure data centers and AI services, providing access to advanced AI models from OpenAI, Anthropic, and other providers.
Microsoft’s AI infrastructure will help the UAE maintain its global leadership in AI adoption. The Microsoft AI Diffusion Report shows that 59.4 percent of the UAE’s population uses generative AI – the highest rate in the world.
Building AI talent and innovation capacity
Microsoft’s expansion in the UAE is also focused on nurturing AI talent. The company employs nearly 1,000 staff across the UAE, representing 40 nationalities, with close to 100 engineers. Its local partner network has tripled in two years, now comprising 1,400 firms employing about 45,000 professionals.
In 2024, Microsoft established the Global Engineering Development Center in Abu Dhabi to attract top global talent. The company also opened the Microsoft AI for Good Lab in Abu Dhabi, which works with researchers and startups across the Middle East and Africa on humanitarian AI projects.
Microsoft has pledged to skill one million people in the UAE by 2027 and is already partnering with government bodies to train 120,000 civil servants and over 200,000 students and teachers in AI and digital skills.
Promoting responsible and trusted AI
Microsoft’s partnership with G42 emphasizes responsible AI development and international trust. Together with G42 and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Microsoft co-founded the Responsible AI Future Foundation (RAIFF) in Abu Dhabi earlier this year. The foundation promotes responsible AI standards and ethical practices across the Middle East and the Global South.
The company also helped create the Intergovernmental Assurance Agreement (IGAA), a binding framework between Microsoft and G42 that ensures compliance with U.S. standards in cybersecurity, data protection, and responsible AI. Developed in consultation with both the U.S. and UAE governments, the IGAA sets a precedent for international technology cooperation.
As part of this initiative, Microsoft is co-hosting the first Abu Dhabi Global AI Summit with G42, RAIFF, and GZERO Media, bringing together global leaders to discuss strategies for equitable AI growth and innovation across the Global South.
Rajani Baburajan
