Microsoft's $15.2 Billion Investment Aims to Make UAE a Global AI Leader

Microsoft has announced a $15.2 billion investment in the United Arab Emirates (UAE) to enhance the nation's artificial intelligence (AI) and cloud infrastructure. This initiative, spanning from 2023 to 2029, underscores the UAE's ambition to become a global leader in AI development.

The investment plan is divided into two phases. From 2023 through the end of 2025, Microsoft will have invested over $7.3 billion, which includes a $1.5 billion equity stake in Abu Dhabi-based AI firm G42, more than $4.6 billion in capital expenditures for advanced AI and cloud data centers, and over $1.2 billion in local operating expenses. Between 2026 and 2029, the company plans to invest an additional $7.9 billion, comprising over $5.5 billion for ongoing and new AI and cloud infrastructure expansion, and nearly $2.4 billion in local operating expenses.

In April 2024, Microsoft invested $1.5 billion in G42, a leading UAE-based AI technology holding company. This partnership aims to accelerate AI development and global expansion, with Microsoft Vice Chair and President Brad Smith joining G42's Board of Directors. Both companies have committed to adhering to world-leading standards in AI safety and security, ensuring compliance with international trade and security standards.

Microsoft has secured U.S. export licenses to ship advanced Nvidia AI chips, including A100, H100, and H200 GPUs, to the UAE. These licenses enable Microsoft to deploy over 80,000 A100-class chips in the region, bolstering the UAE's AI capabilities.

The company plans to train one million UAE residents in AI by 2027, including 120,000 government employees and 175,000 students. Microsoft has also established a Global Engineering Development Center and an AI for Good Lab in Abu Dhabi to foster local talent and innovation.

This substantial investment not only enhances the UAE's technological infrastructure but also strengthens the strategic partnership between the U.S. and the UAE, positioning the region as a leader in AI development and deployment.

G42 is a technology holding group based in Abu Dhabi, specializing in artificial intelligence. The company champions AI as a powerful force for good across various industries, from molecular biology to space exploration.

H.H. Sheikh Tahnoon bin Zayed Al Nahyan, Chairman of G42, stated, "Microsoft’s investment in G42 marks a pivotal moment in our company’s journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations."

Brad Smith, Microsoft Vice Chair and President, commented, "Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations."

The UAE has been investing heavily in AI as part of its economic diversification strategy. In May 2025, the UAE and the U.S. unveiled plans for a new 5GW UAE-US AI Campus in Abu Dhabi, aiming to become a global center for AI innovation and adoption.

This investment is part of a broader trend of increasing collaboration between U.S. tech companies and Middle Eastern nations, reflecting a mutual interest in advancing AI technologies and infrastructure.

This comprehensive investment by Microsoft signifies a major step in the UAE's journey to becoming a global AI hub, with far-reaching implications for technology, economy, and international relations.