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The tech giant Microsoft announced a major investment of $15.2 billion in the United Arab Emirates aimed at boosting AI and cloud infrastructure between 2023 and the end of 2029. The company stated that it has already spent $7.3 billion and plans to deploy an additional $7.9 billion.
During a meeting with Abu Dhabi’s leadership, Microsoft Vice Chair and President Brad Smith stated that the funds will be allocated directly to UAE operations and not sourced from local capital-raising efforts. “This is not money raised in the UAE. It’s money we’re spending in the UAE,” he said.
Roughly two-thirds of the total investment will be allocated to building advanced artificial intelligence and cloud data centers across the UAE. The remaining one-third will cover local operating costs, talent development, and goods and services.
A key element of the initiative includes export licences from the United States Department of Commerce to ship high-end GPUs from NVIDIA to the UAE. Microsoft secured approval to bring in the equivalent of tens of thousands of A100-class chips and next-gen GB300 models.
The UAE, bolstered by its close ties with the United States, has set out to establish itself as a regional hub for artificial intelligence. Microsoft’s investment underscores that ambition while also highlighting a strategic tech partnership between the two countries.
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Partnership with UAE-based sovereign AI company G42 anchors the deal. Microsoft holds equity in G42 and has established local engineering and AI research centres in Abu Dhabi. The company also aims to train up to one million people in the UAE by 2027, including government employees, students, and teachers.
Experts say the investment marks a shift in global AI infrastructure. By locating central cloud and AI in the Gulf, Microsoft signals that AI-cloud growth will spread beyond traditional tech hubs. At the same time, the Papua partnership of chip exports marks a test case for how US-based firms and governments navigate export curbs while maintaining security standards.
For the UAE, the deal brings more than hardware. It supports its vision of a diversified, knowledge-based economy where AI plays a central role in business, government services, and talent development. Microsoft’s pledge of technology, staff, and trust is designed to bolster that strategy.
In short, Microsoft’s investment drives the next chapter of AI and cloud infrastructure in the UAE. The focus on data-centres, chip exports, talent building, and local partnerships ties tech ambition to practical growth on the ground.
