Microsoft has confirmed a landmark $15.2bn investment in the United Arab Emirates between 2023 and 2029, expanding the nation’s artificial intelligence (AI) and cloud infrastructure, developing digital skills and strengthening technological collaboration between the UAE and the United States.
The initiative underscores Microsoft’s long-term commitment to supporting the UAE’s vision for sustainable innovation and digital transformation.
During a briefing in Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, met Brad Smith, Vice Chair and President of Microsoft, who outlined the company’s future investment plans in AI infrastructure, talent development and research programmes.
Sheikh Khaled bin Mohamed bin Zayed said the investment reflects global confidence in the UAE’s long-term economic vision to build a diversified, knowledge-based and technology-driven economy, further strengthening Abu Dhabi’s position as a global hub where capital and innovation converge.
Microsoft makes $15.2bn UAE commitment
Microsoft said it will have spent more than $7.3bn the UAE by the end of 2025.
This includes a $1.5bn equity investment in G42, $4.6bn (AED16.9bn) in capital expenditure on AI and cloud data centres, and $1.2bn (AED4.4bn) in local operating costs.
Between 2026 and 2029, Microsoft plans to invest another $7.9bn, comprising $5.5bn for continued expansion of AI and cloud infrastructure and $2.4bn for local operating expenses and cost of goods sold.
As part of the programme, Microsoft has secured export licences to import advanced NVIDIA A100, H100 and H200 GPUs, equivalent to more than 80,000 A100-class chips, to power Azure AI services and boost innovation across UAE industries.
Technology, talent and trust
Brad Smith, Vice Chair and President of Microsoft, said: “This is not money raised in the UAE. It’s money we’re spending in the UAE. And as we do everywhere in the world, we’re focused not just on growing our business but also on contributing to the local economy.
“This involves bringing together three critical factors – technology, talent and trust.
“Microsoft’s investment in the UAE is not just about technology, it’s about people. By cultivating AI talent and skilling individuals to develop, deploy and use AI in a way that reflects the region’s unique needs, Microsoft is helping to ensure that the UAE remains on the leading edge of AI diffusion.”
He noted that the investment “strengthens the deep and enduring technology partnership between the UAE and the United States, reflecting our shared commitment to harnessing AI for sustainable growth, economic diversification and opportunity for future generations.”
Expanding AI and cloud capacity
Microsoft’s investment builds on its long-term partnership with G42, the Abu Dhabi-based AI technology group.
Peng Xiao, Group CEO of G42, said: “Our partnership with Microsoft is not only about aspiration, it’s about execution and impact. Together, we are deploying world-class digital infrastructure, advancing the frontiers of AI across industries and establishing a new standard for cross-border collaboration rooted in trust.
“This is how we build enduring value, not just for the UAE, but for a more interconnected and intelligent world.”
The company is expanding its AI and cloud data-centre infrastructure nationwide, supported by export approvals from the US government to ensure compliance with cybersecurity, export-control and responsible-AI standards.
Training one million people by 2027
Alongside its infrastructure investment, Microsoft has pledged to train one million people in the UAE by 2027, including 120,000 government employees, 175,000 students and 39,000 teachers, to ensure AI innovation is inclusive and accessible across all sectors.
It has also established a Global Engineering Development Center and the Microsoft AI for Good Lab in Abu Dhabi to advance research in responsible AI and large-scale model development.
Together with G42 and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Microsoft co-founded the Responsible AI Future Foundation (RAIFF) to promote ethical AI practices and strengthen international cooperation in technology governance.
Governance and cooperation framework
Microsoft’s partnership with the UAE is supported by the Intergovernmental Assurance Agreement (IGAA), developed in consultation with both the US and UAE governments.
The agreement sets frameworks for cybersecurity, data protection, export control and responsible-AI governance.
The company said the initiative reflects a shared belief that progress in AI must be built on trust — between institutions, nations and the people they serve — ensuring the benefits of technology reach every community and fuel sustainable growth across the UAE and beyond.
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