Microsoft Announces $1.5 bn Investment in UAE’s G42 to Accelerate AI Adoption

Microsoft Announces $1.5 bn Investment in UAE’s G42 to Accelerate AI Adoption

Microsoft announced an AED 5.5 billion ($1.5 billion) strategic investment in G42, a leading AI technology holding company from the United Arab Emirates (UAE). This investment paves the way for an exciting partnership between Microsoft and G42. This includes significant advancements in AI technologies and skilling initiatives both within the UAE and globally.

Furthermore, the partnership between Microsoft and G42 extends beyond the UAE and promotes AI adoption across diverse regions. By leveraging Microsoft Azure as its preferred cloud platform, G42 aims to deliver cutting-edge AI solutions to global public sector clients and large enterprises. This strategic collaboration reflects a shared commitment to fostering innovation and competitiveness.

Fostering AI Excellence – Microsoft-G42 Partnership’s $1 Billion Innovation Fund

A key pillar of this partnership is setting an AED 3.67 billion ($1 billion) fund to drive innovation in the UAE and the broader region. This initiative underscores the joint commitment to nurturing a skilled workforce capable of harnessing the power of AI and driving sustainable growth. By investing in the development of local talent and fostering a culture of innovation, the partnership aims to position the UAE as a hub for AI excellence and entrepreneurship. Earlier this month, Dubai launched Global Blueprint for Artificial Intelligence (AI) to expedite the adoption of AI applications. The initiative will help Dubai achieve its Economic Agenda D33 targets by contributing an additional AED 100 billion ($27.2 billion) to Dubai’s economy. Furthermore, it will help the UAE to grow its digital economy to AED 514 billion ($174 billion) by 2031.

Building Responsible AI – Microsoft-G42 Partnership and Regulatory Compliance

The collaboration between Microsoft and G42 is built on a foundation of responsible AI. Both companies have entered into an Intergovernmental Assurance Agreement (IGAA), developed in consultation with the UAE and US governments. This ensures the secure, trusted, and responsible development and deployment of AI technologies. 

In addition to the strategic investment, the partnership between Microsoft and G42 has already yielded significant milestones over the past year. Joint initiatives have been launched to develop AI solutions tailored for the public sector and industry, sovereign cloud offerings have been introduced, and G42’s Jais Arabic Large Language Model is now available on Microsoft’s Azure AI Cloud Model-as-a-Service offering. These achievements underscore the collaborative spirit and shared commitment to driving innovation and economic growth in the Gulf region and beyond. 

Driving Global AI Innovation – Microsoft-G42 Partnership’s Vision for Positive Change

Microsoft’s AED 5.5 billion ($1.5 billion) strategic investment in G42 represents a significant step forward in advancing AI adoption and innovation. By combining Microsoft’s expertise in cloud computing and AI with G42’s deep understanding of regional dynamics and market needs, the partnership is poised to unlock new opportunities, accelerate innovation, and drive sustainable growth in the UAE and beyond. Through responsible AI practices and a commitment to regulatory compliance, Microsoft and G42 are paving the way for a future where AI serves as a powerful force for positive change and inclusive growth.

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Author: Waqas Siddiqui
As a research consultant, I am passionate about supporting businesses in successfully expanding in the UAE and Gulf region. I can be reached at for research inquiries.