Microsoft to invest over US$15 billion in UAE as it secures US export licences for Nvidia chips

Microsoft Corporation has announced plans to invest approximately US$15.2 billion in the United Arab Emirates (UAE) between 2023 and 2029, largely aimed at expanding AI‑ and cloud‑infrastructure in the Gulf state, according to company filings and executive statements.

In tandem, Microsoft disclosed that it has obtained U.S. export licences under the United States Department of Commerce enabling the shipment of advanced Nvidia GPUs, including the A100, H100/H200 and GB300 series, to UAE‑based data‑centre operations.

Microsoft’s Vice Chair and President Brad Smith said the funding and chip‑licence approvals will support the company’s “critical” mission of meeting demand for AI usage in the UAE, where he noted per‑capita generative‑AI adoption rates are among the highest globally.

Investment breakdown

• Microsoft reports that it has spent just over US$7.3 billion in the UAE between 2023 and end‑2025, including a US$1.5 billion equity investment in the Emirati AI firm G42.
• The remaining planned investment of more than US$7.9 billion between 2026 and 2029 will include over US$5.5 billion in capital expenditure for AI and cloud infrastructure, plus around US$2.4 billion in operating expenses and cost of goods sold.

The U.S. export‑licence approvals mark the first time Microsoft has been authorised to ship the most advanced Nvidia chips to the UAE under the Trump‑administration regime of controls, emphasising the importance of compliance with cybersecurity, physical‑security and technology‑safeguard rules.
Under the licences, Microsoft has accumulated the equivalent of 21,500 A100‑class GPUs and has approval to bring in as many as 60,400 additional A100‑equivalent units, including GB300 chips.

Analysts say the announcement reinforces the UAE’s ambition to position itself as a global AI hub and deepens the U.S.–UAE tech‑and‑infrastructure axis. The deal also signals a shift in U.S. export‑control policy, enabling high‑end chip exports to friendly partners outside the U.S. mainland.

For Microsoft, the UAE investment and chip access underpin its global cloud‑and‑AI growth strategy and position the Gulf as a test‑bed for “AI diffusion” initiatives and responsible‑AI frameworks.

While the investment is large, Microsoft notes that the delivery and deployment of the chips are still “a matter of months”, and long‑term success depends on regulatory and security compliance, interoperability of local infrastructure, and market demand for AI services.
Observers caution that sustaining high investment rates and managing geopolitics, export‑safeguard regimes and local talent development remain key to realising the promised opportunities.

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