Microsoft has announced a significant investment of $15.2 billion in the United Arab Emirates by 2029, aimed at enhancing artificial intelligence and cloud infrastructure, fostering local digital skills, and strengthening technology collaboration between the UAE and the US.
During a meeting with Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, Microsoft’s Vice Chair and President, Brad Smith, shared insights about the company’s strategy to expand AI infrastructure and educational initiatives in the UAE, as reported by the Abu Dhabi Media Office on November 3.
Smith emphasized that this capital is not from local fundraising but is specifically designated for expenditure within the UAE. He noted that the investment aims to integrate “technology, talent, and trust” and focuses on empowering local experts to create and implement AI solutions tailored to the region’s needs.
This funding builds on the existing partnership between Microsoft and G42, an AI company based in Abu Dhabi, highlighting the strengthening technological relationship between the US and the UAE. G42’s CEO, Peng Xiao, remarked that their collaboration aims to “push the boundaries of AI across different sectors” and “set a new benchmark for international cooperation founded on trust.”
The investment plan includes over $7.3 billion allocated for the period from 2023 to the end of 2025, consisting of a $1.5 billion equity stake in G42, more than $4.6 billion dedicated to capital expenditures for AI and cloud data centers, and about $1.2 billion in local operational expenses.
From 2026 to 2029, Microsoft anticipates an additional expenditure of $7.9 billion, which includes $5.5 billion for continued data center development.
The technology giant has also obtained export licenses to bring advanced NVIDIA GPUs into the UAE, introducing over 80,000 A100-class chips for AI operations.
Microsoft to Address Skill Shortages Through Training
In addition to its investment in infrastructure, Microsoft plans to train one million individuals in the UAE by 2027, comprising 120,000 government employees and 175,000 students. The company has established a Global Engineering Development Centre and an AI for Good Lab in Abu Dhabi as part of this initiative.
This year, Microsoft and G42 jointly founded the Responsible AI Future Foundation, in collaboration with the Mohamed bin Zayed University of Artificial Intelligence, to advocate for ethical AI practices. The two nations have also entered into an Intergovernmental Assurance Agreement to support adherence to cybersecurity standards, data protection regulations, and export controls.
Khaldoon Khalifa Al Mubarak, the Secretary General of the Artificial Intelligence and Advanced Technology Council, stated that this initiative “demonstrates our collective commitment to leveraging AI for sustainable development, economic diversification, and creating opportunities for future generations.”
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