Sheikh Khaled: Microsoft’s $15.2B AI Investment to Boost UAE Digital Growth

Microsoft is channeling a $15.2 billion investment into the United Arab Emirates to significantly advance the nation’s artificial intelligence and cloud computing capabilities. This multi-year financial commitment, extending from 2023 through 2029, is strategically designed to build robust digital infrastructure, cultivate a highly skilled local workforce, and reinforce a trusted technology partnership between the UAE and the United States. The initiative underscores a powerful alignment with the UAE’s ambitious vision for a sustainable, innovation-driven, and diversified economy.

His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, was recently briefed by Microsoft Vice Chair and President Brad Smith on the comprehensive plans. These plans detail a significant expansion of AI infrastructure alongside major programs for training and upskilling Emirati talent through dedicated research and development efforts. Sheikh Khaled highlighted that this monumental investment reflects profound international confidence in the UAE’s long-term economic strategy, which aims to establish a knowledge-based, technology-led economy. It further cements the status of the UAE and Abu Dhabi as a leading global nexus where capital and cutting-edge innovation merge to build the industries of tomorrow.

A core objective of this investment is to develop AI expertise that is specifically tailored to address regional requirements. Brad Smith clarified that the funds represent capital being deployed within the UAE, not capital raised from it. He explained that Microsoft’s approach globally integrates three fundamental pillars: technology, talent, and trust. Smith emphasized that the investment transcends hardware and software, focusing profoundly on people. By nurturing local AI talent and equipping individuals to develop and utilize AI in ways that resonate with the region’s distinct characteristics, Microsoft is helping position the UAE at the forefront of global AI adoption.

Khaldoon Khalifa Al Mubarak, Secretary-General of the Artificial Intelligence and Advanced Technology Council (AIATC), noted that Abu Dhabi and the wider UAE are decisively emerging as international hubs for AI innovation. He stated that technology is being woven into the very fabric of government, society, and the economy. This investment also deepens the strategic technology alliance between the UAE and the United States, showcasing a mutual dedication to leveraging AI for sustainable growth, economic diversification, and creating opportunities for coming generations. The collaboration builds upon Microsoft’s established partnership with G42, a premier UAE-based AI technology holding company, highlighting a shared focus on merging technology, talent, and trust to drive inclusive economic progress.

A significant portion of the investment, projected at $7.9 billion from 2026 to 2029, will fuel the continued expansion of AI and cloud data centre infrastructure throughout the UAE. This includes importing advanced graphics processing units (GPUs) from the United States to empower next-generation AI applications. Peng Xiao, Group CEO of G42, described the partnership with Microsoft as one centered on concrete execution and measurable impact. He said that together, they are deploying top-tier digital infrastructure, pushing the boundaries of AI across various sectors, and creating a new benchmark for international collaboration built on a foundation of trust, thereby generating lasting value for the UAE and a more intelligent global community.

From the start of 2023 through the end of this year, Microsoft’s planned investment in the UAE exceeds $7.3 billion. This figure includes a $1.5 billion equity investment in G42, more than $4.6 billion allocated for capital expenses on advanced AI and cloud data centres within the country, and over $1.2 billion for local operational expenditures and costs of goods sold. Looking forward, the subsequent phase from early 2026 to the end of 2029 will see an investment surpassing $7.9 billion. This includes over $5.5 billion for capital expenses related to ongoing and planned infrastructure expansion, with new developments to be announced in Abu Dhabi shortly, alongside nearly $2.4 billion in anticipated local operating expenses.

To support this technological leap, the company has secured export licenses to ship advanced NVIDIA A100, H100, and H200 GPUs into the UAE. This shipment is equivalent to over 80,000 A100-class chips, which will be instrumental in powering Azure AI services and fueling local innovation across multiple industries.

A major component of the initiative is a skill development program aiming to reach one million individuals in the UAE by 2027. Microsoft has worked in close consultation with both the U.S. and UAE governments to ensure strict adherence to cybersecurity, export control, and responsible AI standards, demonstrating its commitment to transparency in international technology partnerships. The company has also established a Global Engineering Development Center and a Microsoft AI for Good Lab in Abu Dhabi to spearhead research and innovation in responsible AI and large-scale models.

In cooperation with UAE government bodies and academic institutions, Microsoft has committed to training one million residents by 2027. This ambitious program includes upskilling 120,000 government employees, 175,000 students, and 39,000 teachers, ensuring that the benefits of AI innovation are broadly inclusive and accessible to all segments of society. Furthermore, in a joint effort with G42 and the Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), Microsoft helped launch the Responsible AI Future Foundation (RAIFF) earlier this year. This foundation is dedicated to promoting responsible AI practices and frameworks across the Middle East and the Global South, advancing research on ethical AI development and seeking to strengthen international cooperation on technology governance.

The partnership is underpinned by an Intergovernmental Assurance Agreement (IGAA), formulated with input from both governments to maintain the highest possible standards for cybersecurity, data protection, export controls, and responsible AI governance. Microsoft’s collaborative work with its partners in the UAE is rooted in a common conviction that progress in artificial intelligence must be founded on trust, among institutions, between nations, and with the public. By uniting technological advancement with a steadfast commitment to responsible development, Microsoft strives to ensure that the transformative potential of AI delivers widespread benefits, fostering sustainable growth and creating new opportunities throughout the UAE and the wider world.

(Source: Economy Middle East)