As Abu Dhabi and Dubai gear up for their annual energy and technology conferences, Microsoft has laid out the full scale of its investment in the United Arab Emirates – and the numbers are substantial.

The investment breakdown

Microsoft will pour $15.2 billion into the UAE between 2023 and 2029. Crucially, this isn't money raised locally – it's cash the tech giant is actually spending in the country.

The investment splits into two phases. From 2023 through the end of this year, Microsoft will have invested just over $7.3 billion. This includes a $1.5 billion equity stake in G42 (the UAE's sovereign AI company), more than $4.6 billion in advanced AI and cloud data centres, and over $1.2 billion in local operating costs.

Looking ahead, from 2026 to 2029, Microsoft plans to spend another $7.9 billion. The bulk of that – roughly $5.5 billion – will go towards expanding AI and cloud infrastructure, with nearly $2.4 billion allocated for local operations.

Why the UAE matters for AI

Here's something striking: according to Microsoft's own AI Diffusion Report published last week, the UAE leads the world in per capita AI usage. An impressive 59.4% of the population is using generative AI – narrowly beating Singapore's 58.6%. No other country even crosses the 50% mark.

For Microsoft, this creates an interesting challenge. You don't buy ahead of exchange; you buy with the exchange.

The chip situation

Microsoft has secured something valuable: export licences from the U.S. Commerce Department to ship advanced GPUs to the UAE. This isn't trivial – these chips are subject to strict controls, and obtaining approval requires meeting stringent cybersecurity and national security requirements.

Under the previous administration, Microsoft accumulated the equivalent of 21,500 Nvidia A100 GPUs in the country (a combination of A100, H100, and H200 chips). This year, under the Trump administration, Microsoft became the first company to secure fresh export licences, approved in September. These newer licences allow shipment of 60,400 additional A100-equivalent chips – specifically Nvidia's more advanced GB300 GPUs.

What's all this computing power for? Microsoft is using these GPUs to provide access to advanced AI models from OpenAI, Anthropic, open-source providers, and its own systems. They're supporting AI applications, including Copilot tools, and partnering with G42 to serve public and private organisations across the UAE economy.

Building local talent

Technology is only half the story. Microsoft's UAE presence now includes nearly 1,000 full-time employees representing 40 nationalities. Almost 100 are engineers, supported by an Emirati partner ecosystem that's grown threefold in just two years – now encompassing 1,400 firms employing nearly 45,000 professionals.

This year saw the establishment of a Global Engineering Development Centre in Abu Dhabi, designed to attract world-class tech talent. Engineers there don't just develop products for Microsoft – they support local institutions and businesses looking to transform their operations using AI and cloud technologies.

Additionally, Microsoft has its new AI for Good Lab center in Abu Dhabi with a team of PhD-level researchers who are experts in large-scale AI model development. The collaboration has the backing of Windows Azure compute grants, and the team works with NGOs, startups, academics, and local enterprises to resolve the human crises that the use of AI covers in the Middle East and Africa.

Among the projects executed, one that gestures to the future of AI as it pertains to the East African region is the application of and development of large language modelling for the rather less-used languages of Malawi, Tanzania, Kenya, Uganda, and Democratic Republic of the Congo.

The skills gap

Microsoft recognises a fundamental challenge: without proper digital skills, AI risks deepening inequality rather than broadening opportunity. That's why they've committed to training one million people in the UAE by the end of 2027 – and they reckon they're on track to exceed that goal.

Last month at GITEX, Microsoft partnered with UAE government entities to launch an initiative upskilling 120,000 government employees across the federal government, Abu Dhabi, Dubai, and Sharjah. They'll also train 175,000 students and 39,000 teachers through collaborations with GEMS and various education authorities. More announcements are expected this Thursday in Dubai.

Trust and governance

Perhaps the most interesting aspect of Microsoft's UAE strategy is its focus on trust and responsible AI governance.

In February, G42, Microsoft, and Mohamed bin Zayed University of Artificial Intelligence founded the Responsible AI Future Foundation (RAIFF) in Abu Dhabi. The foundation promotes responsible AI standards across the Middle East and Global South, advancing research on technical and ethical elements whilst developing frameworks that account for cultural diversity.

There's also the Intergovernmental Assurance Agreement (IGAA) – a first-of-its-kind binding framework between Microsoft and G42 developed in consultation with U.S. and UAE governments. It ensures both companies meet or exceed U.S. standards in cybersecurity, physical security, export controls, data protection, responsible AI, and Know Your Customer practices.

Microsoft consulted not just government ministries but members and staff from both political parties in both houses of Congress whilst drafting the IGAA. They listened to feedback and adapted accordingly, building what they describe as a strong compliance infrastructure based on industry best practices.

The broader context

This week, Microsoft is travelling to Abu Dhabi with a Seattle delegation of public and private leaders – including a former Governor and figures from economic development, higher education, medical research, nonprofits, and sports. The Aim is Simple: to enlarge comprehension, share thoughts and examine the common good solutions.

This is a little piece of Microsoft's larger view that relationship between countries is built through people's interactions, and not just by treaties between governments.

The bottom line

Microsoft's $15.2 billion commitment represents one of the largest foreign technology investments in the UAE. But the company is framing it as more than just infrastructure spending – it's about creating a self-sustaining tech ecosystem that benefits the local economy whilst strengthening ties between the U.S. and UAE.

Whether this model proves successful could have implications far beyond the Middle East. If Microsoft can demonstrate that massive AI infrastructure investments can genuinely drive local opportunity and innovation – rather than just enriching foreign tech companies – it might offer a template for how AI diffusion can work in other regions, particularly across the Global South.

For now, the UAE is leading the world in AI adoption per capita. Microsoft's betting heavily that this early lead can be sustained and deepened. The next few years will reveal whether that bet pays off for the company, the UAE, and the broader vision of making AI accessible beyond wealthy Western nations.