Microsoft has announced plans to invest $15.2 billion in the United Arab Emirates by 2029 as part of its multi-year effort to expand AI and cloud infrastructure, develop local talent, and strengthen trust in responsible AI governance. The initiative, which began in 2023, builds on a strategic partnership with G42, the UAE’s sovereign AI company, and enjoys the support of both the U.S. and UAE governments.
According to Microsoft Vice Chair and President Brad Smith, the company’s investments are focused on creating long-term value in the UAE economy rather than simply expanding operations. Between 2023 and the end of this year, Microsoft will have invested $7.3 billion, including a $1.5 billion equity investment in G42, over $4.6 billion in AI and cloud datacenter infrastructure, and $1.2 billion in local operating expenses. An additional $7.9 billion is planned through 2029, with $5.5 billion allocated to infrastructure expansion and $2.4 billion for operations and goods.
A key focus of Microsoft’s investment is the deployment of world-class AI hardware and software in the UAE. The company has secured export licenses from the U.S. Commerce Department to ship Nvidia A100, H100, H200, and GB300 GPUs to the country, enabling a total equivalent of more than 80,000 chips. These GPUs will power advanced AI models from OpenAI, Anthropic, Microsoft, and open-source providers, supporting the adoption of AI technologies across both the public and private sectors in the UAE.
Microsoft’s AI Diffusion Report recently ranked the UAE as the world leader in generative AI usage, with 59.4% of its population utilizing such technologies. To keep pace with demand, Microsoft has ramped up its infrastructure while also investing heavily in human capital. The company now employs nearly 1,000 people in the UAE, representing 40 nationalities, with around 100 engineers. It has built a network of 1,400 Emirati partner firms employing 45,000 professionals nationwide.
The company’s Global Engineering Development Center and AI for Good Lab in Abu Dhabi are central to Microsoft’s talent initiatives. These centers attract top global engineers and researchers to develop AI solutions tailored to local needs while also supporting humanitarian projects across the Middle East and Africa. The AI for Good Lab, for example, is training language models for underrepresented African languages.
Microsoft’s UAE skills initiative, launched last year, aims to train one million people by 2027. At the recent GITEX event, Microsoft and government partners announced programs to upskill 120,000 government employees, 175,000 students, and 39,000 teachers.
Trust remains a cornerstone of Microsoft’s strategy. Together with G42 and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the company co-founded the Responsible AI Future Foundation (RAIFF) in Abu Dhabi earlier this year to advance ethical AI frameworks across the Global South. Microsoft and G42 have also established an Intergovernmental Assurance Agreement (IGAA), a first-of-its-kind framework between two private firms, developed in collaboration with both governments to ensure compliance with U.S. standards on cybersecurity, data protection, export controls, and responsible AI.
Microsoft’s participation in the inaugural Abu Dhabi Global AI Summit further highlights its commitment to inclusive AI development. The company has also brought a delegation of Seattle-based business, education, and nonprofit leaders to strengthen ties between the U.S. and the UAE.
Smith reaffirmed that Microsoft’s UAE investment is about long-term partnership and shared prosperity, positioning the nation as a global leader in AI while promoting trust, transparency, and local opportunities.
KEY QUOTES:
“We believe in moving fast while staying grounded and being transparent about our investment details. And we want to share our strong conviction that our investments benefit the shareholders of our company, the people of the UAE, and the relationship between our two nations.”
“Our infrastructure challenge in the UAE is not a risk of getting ahead of demand but keeping pace with it.”
“Talent is the engine of AI leadership. Attracting, nurturing, and building AI talent and know-how is essential to the UAE turning its vision of becoming a global leader into a reality.”
“Without the right skills, AI risks deepening inequality rather than broadening opportunity. That’s why skilling is a core pillar of our investment in the UAE.”
“Trust between nations depends on strong relationships between its people, grounded in mutual respect and appreciation for each other’s cultures.”
“Technology is our business and we’re as excited as anyone by its potential. But we know that ultimately there is only one test that matters. It’s how our technology empowers others to achieve more.”
Brad Smith, Vice Chair & President, Microsoft
