Image Credit : Microsoft
Dubai, UAE — November 2025 — In an endorsement of the UAE’s position as a global technology and artificial intelligence hub, Microsoft has unveiled a $15.2 billion investment plan for the country, to be completed by the end of 2029.
The announcement, made as the UAE hosts major energy and technology conferences in Abu Dhabi and Dubai, underscores a deep, strategic partnership aimed at accelerating the nation’s AI-driven economic growth.
According to a statement, the investment is centred on a pivotal partnership with G42, the UAE’s AI company, and is structured around three core pillars: building world-leading technology infrastructure, developing local talent, and fostering a secure, trusted AI ecosystem.
Substantial investment in UAE infrastructure and economy
Vice Chair and President of Microsoft, Brad Smith, emphasised that the funds represent capital being spent directly within the UAE to fuel the local economy.
The breakdown includes:
By the end of 2024: A total of over $7.3 billion has been invested. This includes a $1.5 billion equity investment in G42, more than $4.6 billion in capital expenses for advanced AI and cloud data centres, and over $1.2 billion in local operating expenses.
2026 to 2029: A further $7.9 billion is planned, with over $5.5 billion allocated for expanding AI and cloud infrastructure and almost $2.4 billion for ongoing local operations.
Powering the world’s highest AI adoption rate
This infrastructure investment is critical to keeping pace with the UAE’s adoption of AI. According to the recent Microsoft AI Diffusion Report, the UAE leads the world in per capita AI usage, with 59.4 percent of the population using generative AI.
To power this demand, Microsoft has deployed the equivalent of 21,500 advanced Nvidia A100 GPUs in its UAE data centres. Furthermore, following recent approvals, the company is set to import the equivalent of an additional 60,400 A100 chips using Nvidia’s most advanced GPUs.
This infrastructure provides UAE organisations and consumers with access to cutting-edge AI models from OpenAI, Anthropic, and Microsoft itself.
Cultivating homegrown talent and expertise
Beyond technology, Microsoft is making a major commitment to developing UAE talent. The company’s growing local team includes almost 1,000 full-time employees and staff of 40 nationalities.
Key initiatives include the establishment of a Global Engineering Development Center in Abu Dhabi to attract world-class tech talent. It also includes the launch of a Microsoft AI for Good Lab in Abu Dhabi, staffed by PhD researchers, to address humanitarian challenges across the Middle East and Africa.
Adding to that, a commitment to skill one million people in the UAE by 2027. This includes partnerships to upskill 120,000 government employees and 175,000 students and 39,000 teachers in collaboration with entities like ADEK and KHDA.
Building a foundation of trust and security
A cornerstone of the Microsoft-G42 partnership is a strong commitment to responsible and secure AI.
This is demonstrated by several key initiatives including the creation of the Responsible AI Future Foundation in Abu Dhabi, founded by G42, Microsoft, and the Mohamed bin Zayed University of Artificial Intelligence, as well as the first-of-its-kind Intergovernmental Assurance Agreement between Microsoft and G42, developed with the US and UAE governments, ensuring the highest standards of cybersecurity, data protection, and responsible AI.
This investment reinforces Microsoft’s long-term commitment to the UAE’s economic vision and its role as a leading global AI nation, creating significant local opportunities and strengthening the strategic partnership between the UAE and the US.
