Key facts
- Microsoft plans to invest over $10 billion in the UAE, Saudi Arabia, Qatar, and Kuwait by 2030.
- The investment will focus on cloud and AI infrastructure.
- Digital resilience is a key part of Microsoft's strategy for the region.
- Microsoft plans to invest over $400 million in subsea and terrestrial connectivity across the Middle East by 2030.
- Microsoft invested $1.5 billion in Abu Dhabi's G42 for a minority stake in 2024.
Microsoft is planning to invest more than $10 billion across the United Arab Emirates, Saudi Arabia, Qatar, and Kuwait between now and 2030, with a focus on cloud and AI infrastructure. The US tech giant is making digital resilience a key component of its regional strategy, particularly in light of ongoing geopolitical tensions, including the war involving Iran and attacks on data centers.
Microsoft's Vice Chair and President Brad Smith stated that the company is sustaining and adding to its planned investments, describing it as an aggressive spending schedule. He noted that Microsoft has supported local partners with digital resilience assessments since the conflict began on February 28.
Gulf countries are significantly increasing their investments in AI to diversify their economies away from oil and gas, aiming to become global hubs. They are leveraging their resources, including land and access to cheap energy, to attract hyperscalers like Microsoft. However, challenges such as access to advanced chips and the uncertainty from regional conflicts persist.
In addition to infrastructure investments, Microsoft plans to allocate over $400 million to subsea and terrestrial connectivity across the Middle East by 2030. The company is also strengthening partnerships with national AI firms, having invested $1.5 billion in Abu Dhabi's G42 in 2024 for a minority stake. Microsoft is also collaborating with Saudi Arabia's Humain and Qatar's Qai in priority areas, though without further capital investments.