In a monumental move set to accelerate the UAE’s journey to becoming a global AI leader, Microsoft has committed to a staggering $15.2 billion investment in the country by 2029. This landmark initiative reinforces the nation’s strategic importance and deepens the technological ties between the UAE and the United States, focusing on advanced AI infrastructure, talent development, and responsible innovation.
A Breakdown of the Landmark Investment
The comprehensive investment, which covers the period from 2023 to 2029, is a testament to Microsoft’s long-term commitment to the UAE’s economic vision. The total amount is split between just over $7.3 billion already invested since 2023 and an additional $7.9 billion planned through 2029.
The initial phase includes the previously announced $1.5 billion equity investment in Abu Dhabi’s sovereign AI company, G42, alongside $4.6 billion in capital expenditure for AI and cloud infrastructure and $1.2 billion in operating costs. The next phase, from 2026 to 2029, will see a further $5.5 billion allocated to expand this infrastructure and $2.4 billion for local operations and goods.
Powering a Nation with Advanced AI Infrastructure
A cornerstone of this investment is the deployment of world-leading technology within the UAE. Microsoft was the first company this year to secure crucial US export licenses, enabling it to equip its local datacenters with advanced GPUs, including 60,400 of Nvidia’s A100 chips and the even more powerful GB300 GPUs.
This approval was granted based on stringent technology safeguards and an Intergovernmental Assurance Agreement, ensuring the secure and responsible use of cutting-edge AI hardware. This powerful infrastructure will support the growing demand for AI services, as evidenced by a recent Microsoft report showing the UAE leads the world in per capita generative AI usage at 59.4%.
Deepening Strategic Ties with G42
The partnership with G42 is central to Microsoft’s strategy in the region. The deal, which places Microsoft President Brad Smith on G42’s board, goes beyond capital to establish a trusted framework for delivering sovereign cloud and AI solutions.
Developed in consultation with both the US and UAE governments, the first-of-its-kind Intergovernmental Assurance Agreement (IGAA) between the two companies sets binding standards for cybersecurity, export controls, and responsible AI practices, ensuring alignment with global security and ethical standards.
Cultivating a World-Class Talent Ecosystem
Microsoft’s commitment extends beyond technology to nurturing human capital. The company has pledged to provide AI skills to one million people in the UAE by 2027 and already supports an ecosystem of 1,400 partner firms employing 45,000 professionals.
To drive local innovation, Microsoft has established a Global Engineering Development Centre and an AI for Good Lab in Abu Dhabi. These centers focus on developing domain-specific AI solutions and addressing humanitarian challenges across the Middle East and Africa. Furthermore, in collaboration with G42 and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Microsoft co-founded the Responsible AI Future Foundation (RAIFF) to advance ethical AI standards across the Global South.
About Microsoft
Microsoft is a global technology company whose mission is to empower every person and every organization on the planet to achieve more. It is a leader in cloud computing, gaming, digital transformation, and artificial intelligence, offering a wide range of products and services, including the Azure cloud platform, the Windows operating system, Office productivity software, and the Xbox gaming console.
About G42
G42 is a global leader in creating visionary artificial intelligence capabilities for a better tomorrow. Born in Abu Dhabi and operating across the world, G42 champions AI as a powerful force for good. Its people are constantly reimagining what technology can do, applying advanced thinking and innovation to accelerate progress and tackle society’s most pressing problems.
Source: Microsoft
