Microsoft has announced a strategic investment to enable local data processing for Microsoft 365 Copilot in the United Arab Emirates, available exclusively to qualified UAE organizations. This initiative strengthens Microsoft’s alignment with the UAE’s AI strategy while ensuring data processing, security, and regulatory compliance remain local.

The capability is set to launch in early 2026 and will be hosted across Microsoft’s cloud data centers in Dubai and Abu Dhabi. It will allow customers to leverage AI tools securely within national borders, enhancing data protection and reducing latency.

This announcement supports the UAE’s efforts to position itself as a global hub for AI innovation and governance, under initiatives such as the National Artificial Intelligence Strategy 2031 and the Dubai Universal Blueprint for AI.

Government leaders have praised the initiative as a significant step toward responsible AI adoption. H.E. Omar Sultan Al Olama, Minister of State for Artificial Intelligence, described it as reinforcing the nation’s vision of pairing innovation with trust.

H.E. Dr. Mohamed Al Kuwaiti, Head of Cybersecurity for the UAE Government, highlighted the move’s contribution to national cyber resilience, emphasizing its role in fostering a secure and collaborative digital ecosystem.

The initiative is being developed in partnership with the UAE Cyber Security Council (CSC), Dubai Electronic Security Center (DESC), and G42. It ensures that Microsoft 365 Copilot fully complies with the UAE’s AI Policy and local data governance standards.

H.E. Yousuf Hamad Al Shaibani, CEO of DESC, said the introduction of Copilot represents a milestone in the UAE’s digital transformation, enabling productivity gains while maintaining strict data security protocols under the Dubai AI Security Policy.

Amr Kamel, General Manager of Microsoft UAE, noted that in-country data processing for Copilot marks a new phase in public-sector AI adoption, aligning with the nation’s digital priorities.

Microsoft’s investment also builds on its broader economic impact in the UAE. Its cloud ecosystem is projected to create more than 152,000 new jobs, and the company has committed to training one million UAE learners in AI skills by 2027, further reinforcing its role in the country’s digital transformation.