Microsoft's investment in the UAE: A transformation in artificial intelligence

Microsoft has announced a $15.2 billion investment in the United Arab Emirates through 2029, reflecting a strong commitment to developing artificial intelligence infrastructure in the region. The investment represents a turning point in the global technology race and geopolitical competition for influence in technology and artificial intelligence .

Microsoft's investment size in the UAE The investment announced by Microsoft is worth $15.2 billion, spread over two phases. The first phase began in 2023 and will continue until the end of 2025, with more than $7.3 billion already spent.

The company has invested $1.5 billion as a direct equity investment in G42, the UAE sovereign wealth fund specializing in artificial intelligence, in addition to more than $4.6 billion directed towards building and developing data centers.

The second phase will begin in 2026 and continue until the end of 2029, which will see additional investments of $7.9 billion, of which $5.5 billion will be directed towards developing and expanding the infrastructure for artificial intelligence, cloud services, and distribution. This reflects a long-term strategic vision focused on sustainable building and thoughtful growth.

Nvidia US licenses and export to the UAE The US approval to export Nvidia chips to the UAE represents a crucial turning point in the investment trajectory, and Microsoft obtained a license from the US Department of Commerce in September 2025 to export Nvidia's advanced processors, making it the first company to obtain this license for the UAE.

The licenses also provide a mix of advanced processors, including A100, H100 and H200 chips, and enable Microsoft to accumulate the equivalent of 21,500 Nvidia A100 units in terms of combined computing power.

The approval came with very strict security and cyber requirements, as the company undertook extensive work and a great effort to comply with US security and national security requirements.

New data centers: The engine of regional digital growth The main objective of Microsoft’s investment in the UAE is to build and expand modern data centers specializing in artificial intelligence services. The centers will play a pivotal role in providing advanced cloud services, not only to the UAE but to the entire Gulf region and the Middle East.

It will host and run advanced AI models from several sources, including models from OpenAI , Anthropic and companies that provide open-source solutions, as well as Microsoft's own models.

This diverse mix means that businesses, institutions, and researchers in the UAE and the region will have access to a wide range of the latest AI tools and applications without delay or geographical restrictions.

The role of G42 UAE in the strategic partnership The importance of the strategic partnership between Microsoft and G42 stems from the fact that it reduces the gap between the UAE’s ambitions to build a world-class technological infrastructure and the stringent requirements of US security and cyber compliance.

This partnership facilitates the smooth and secure flow of investments and technology into the region, with G42 playing the role of a trusted intermediary that understands both local markets and international standards, ensuring the success of the project and the achievement of its developmental and technological goals.

AI Infrastructure: A Comprehensive Plan until 2029 The company's plan for the UAE until 2029 includes a comprehensive and multi-dimensional expansion of digital infrastructure, artificial intelligence, and physical data centers, and investments will focus on three main pillars:

Developing and improving large language models specifically for the Arabic language and for commercial and institutional applications. Training local human resources on the latest artificial intelligence technologies and advanced applications. Providing consulting and development services to help companies and institutions adopt and implement artificial intelligence technologies in their operations. Investing in human resources and training Microsoft's investment in the UAE goes beyond just technical infrastructure; the company has pledged to train one million residents by 2027 in artificial intelligence skills and advanced digital technologies.

In addition to general training programs, the company will use Abu Dhabi as a regional hub for artificial intelligence research and advanced model development, which means the region will become a site for producing technological innovations and not just a consumer of technology.

The UAE as a regional hub: The impact of investment on the Middle East The investment in the UAE reflects a broader US strategy aimed at establishing the UAE as a global and regional hub for artificial intelligence and advanced technology.

This investment comes weeks after US President Donald Trump signed an agreement with UAE President Mohammed bin Zayed Al Nahyan in May 2025 to build an artificial intelligence data center complex in Abu Dhabi.

With this investment, the UAE will become a major attraction for large technology companies and international investors seeking access to the Gulf and Middle Eastern market.

Microsoft's investment in the UAE: Economic and employment opportunities The benefits of the investment will not be limited to the technology sector alone, but will extend to the economy and vital sectors, including financial services, healthcare, education, digital marketing, and advanced industries, and will provide many job opportunities for specialists.

Specialized training programs will be launched to qualify local personnel on the latest technologies and methodologies, which will contribute to building a strong and sustainable technical talent pool in the region, to work on creating generations of specialists capable of global competition.

Testing American AI diplomacy This investment is seen by international observers as a practical test of US policy on controlling the export of advanced artificial intelligence technologies, and the UAE represents a real testing ground for a new model of American technology diplomacy, as Washington tries to balance its security interests with expanding its economic and geopolitical influence in a strategic region.

Microsoft’s investment in the UAE is more than just an ordinary investment; it is a clear message about the giant company’s commitment to the region and its confidence in the UAE’s position as a leading regional hub for artificial intelligence.

Ultimately, the coming years up to 2029 will determine whether this investment will become a model for sustainable technological cooperation between the West and the region, or just a move in a larger geopolitical game on the international stage.