Microsoft commits $15.2B to accelerate UAE’s AI future
Investment includes capital expenses in datacentres and local operating expenses
#UAE #investment – Microsoft is investing $15.2 billion in the United Arab Emirates by 2029, a reflection of its growing business in the country, the software giant’s close relationship with the government and its partnership with G42, the UAE’s sovereign AI company. The initiative spans advanced AI infrastructure, datacentre expansion, AI research, and nationwide skills programmes. More than $7.3 billion has already been invested since 2023, including the $1.5 billion equity stake in G42 announced last year and over $4.6 billion in cloud infrastructure, with the remainder funding local operations and AI talent development.
SO WHAT? – This is the largest Middle East investment to be announced by Microsoft to-date and marks another milestone in the UAE’s ambition to become a global AI leader. It also represents a deepening of US–UAE strategic technology ties, balancing innovation, economic growth, and responsible AI governance in a rapidly evolving geopolitical landscape.
Here are some key points about this announcement:
Microsoft has announced that it is investing $15.2 billion in the United Arab Emirates by 2029, a reflection of its growing business in the country, the software giant’s close relationship with the government and its partnership with G42, the UAE’s sovereign AI company.
The software giants investment’s $15.2 billion covers the years 2023–2029, split between $7.3 billion already spent and $7.9 billion planned through 2029, reinforcing Microsoft’s long-term commitment to the UAE economy.
The initial phase includes the $1.5 billion equity investment in G42 announced in April 2024, alongside $4.6 billion in AI and cloud capital expenditure and $1.2 billion in operating costs.
During the next phase from 2026 to 2029, Microsoft will allocate $5.5 billion to expand AI and cloud infrastructure and $2.4 billion for local operations and goods.
Microsoft was the first company to secure US export licences for the UAE this year, enabling the company to acquire 60,400 A100 chips and Nvidia’s even more advanced GB300 GPUs for datacentres. Approved in September, export approvals were based on updated and stringent technology safeguards.
The US tech firm recently established a Global Engineering Development Centre and the AI for Good Lab in Abu Dhabi, driving innovation in domain-specific AI and humanitarian AI research across the Middle East and Africa.
Microsoft, G42, and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) also recently established the Responsible AI Future Foundation (RAIFF) to advance ethical AI standards across the Global South.
The Intergovernmental Assurance Agreement (IGAA) between Microsoft and G42, developed with both US and UAE governments, sets binding standards for cybersecurity, export controls, and responsible AI practices.
Microsoft employs nearly 1,000 staff from 40 nationalities in the UAE and supports 1,400 partner firms with 45,000 professionals. The company has pledged to skill-up one million people in the UAE by 2027.
ZOOM OUT – Microsoft’s $1.5 billion April 2024 investment in Abu Dhabi-based AI group G42 marked a pivotal moment for the Abu Dhabi AI powerhouse and for the UAE’s position in the global AI landscape. The deal went beyond capital, bringing Microsoft president Brad Smith onto G42’s board and formalising an Intergovernmental Assurance Agreement committing both parties to world-leading standards in AI safety, security, and governance. For G42, the partnership represented an extraordinary validation from one of the world’s largest technology companies, signalling its evolution from a national AI champion into a regional and global player. For Microsoft, it created a trusted partner to deliver sovereign cloud and AI solutions in line with U.S. export compliance, locally and globally.
[Written and edited with the assistance of AI]
LINK
Read the Microsoft blog post by Brad Smith (Microsoft)
Read more about Microsoft in the UAE;
ADNOC, Microsoft expand AI and energy partnership (Middle East AI News)
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G42 & Microsoft prioritise responsible AI (Middle East AI News)
Microsoft’s $1.5 billion investment a pivotal moment for G42 (Middle East AI News)