As the United Arab Emirates (UAE) hosts its annual energy and technology conferences at ADNEC, Microsoft has unveiled a US$15.2bn investment in the country. The announcement, made by Brad Smith, Microsoft’s vice-chair and president, marks a milestone in the company’s strategic partnership with G42, the UAE’s sovereign artificial intelligence (AI) firm, and reflects a broader ambition to position the UAE as a global leader in AI.
“This is not money raised in the UAE. It’s money we’re spending in the UAE,” said Smith. “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.”
Amr Kamel, general manager of Microsoft UAE, reflected on the significance of the partnership: “Microsoft’s US$15.2bn investment from 2023 through 2029 represents a deep commitment to the UAE’s digital future. This collaboration truly touches every part of the UAE’s economy, empowering innovators, strengthening local industries and building a foundation of trust for sustainable growth. It’s an investment made for the UAE.”
The investment, which began in 2023 and will continue through 2029, is structured in two phases. By the end of 2025, Microsoft will have spent $7.3bn in the UAE. This includes a $1.5bn equity investment in G42, $4.6bn in capital expenses for advanced AI and cloud datacentres, and $1.2bn in local operating expenses and cost of goods sold. From 2026 to 2029, the company plans to invest an additional $7.9bn, with $5.5bn allocated to further infrastructure expansion and $2.4bn to operating costs.
Central to this investment, the company has secured rare export licences from the US Commerce Department to ship high-performance graphics processing units (GPUs) to the UAE, a process that required meeting stringent cyber security and national security standards. The company has already deployed the equivalent of 21,500 Nvidia A100 GPUs, and in September 2025, received approval to ship an additional 60,400 chips, including Nvidia’s advanced GB300 models.
These chips are powering AI models from OpenAI, Anthropic and Microsoft itself, enabling applications such as Copilot and supporting innovation across both public and private sectors. “While the chips are powerful and the numbers are large, more important is their positive impact across the UAE,” noted Smith. “We’re using these GPUs to provide access to advanced AI models and support AI-enabled applications from a wide variety of providers.”
The UAE’s rapid adoption of AI is reflected in the Microsoft AI diffusion report, which ranks the country first globally in per capita generative AI (GenAI) usage. With 59.4% of the population engaging with GenAI tools, the UAE surpasses even tech-savvy nations such as Singapore. “The infrastructure challenge in the UAE is not a risk of getting ahead of demand but keeping pace with it,” said Smith.
Investment in talent
But Microsoft’s commitment to the UAE goes beyond hardware. The company is investing heavily in talent development, aiming to skill one million people in the country by the end of 2027. This includes upskilling 120,000 government employees across federal and local entities, and training 175,000 students and 39,000 teachers through partnerships with GEMS Education, the Abu Dhabi Department of Education and Knowledge (ADEK) and the Knowledge and Human Development Authority (KHDA).
“Talent is the engine of AI leadership,” said Smith. “Attracting, nurturing and building AI talent and know-how is essential to the UAE turning its vision of becoming a global leader into a reality.”
In February 2025, Microsoft, G42 and Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) founded the Responsible AI Future Foundation (RAIFF) in Abu Dhabi. The foundation promotes ethical AI standards across the Middle East and Global South, advancing research and frameworks that reflect cultural diversity.
Microsoft’s investment in the UAE is more than a business decision – it’s a blueprint for how global tech companies can partner with nations to drive inclusive, responsible and sustainable innovation. As the UAE continues its ascent as a global AI leader, Microsoft’s commitment to technology, talent and trust will play a defining role in shaping the region’s digital future.
