DUBAI, 14th October, 2025 (WAM) -- Microsoft today announced a strategic investment to enable local data processing for Microsoft 365 Copilot in the UAE, exclusively for qualified UAE organisations. This milestone reinforces Microsoft's commitment to supporting the UAE's AI vision while helping ensure local processing, security, and regulatory compliance.

Microsoft will make this capability available in early 2026, hosted within Microsoft's state-of-the-art cloud data centres in Dubai and Abu Dhabi, and will empower qualified customers to harness the transformative power of AI with confidence.

The announcement comes as the UAE continues to position itself as a global hub for AI innovation and governance. The country's National Artificial Intelligence Strategy 2031, the Dubai Universal Blueprint for AI, and the establishment of the Chief Executive Officer for Artificial Intelligence role across ministries underscore the government's commitment to responsible and in-country AI deployment.

Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, stated that the UAE, under the guidance of its leadership, continues to strengthen its position as a global hub for shaping the future.

Through an ambitious and forward-looking vision, the nation continues to transform innovative ideas into tangible achievements, advancing its role as a pioneer in driving global transformation across the fields of artificial intelligence and the digital economy.

He stated that the partnership with Microsoft to develop sovereign AI infrastructure represents a strategic step in embodying the UAE's vision of building a future based on global partnerships. It also reflects the UAE's continuous efforts to empower government entities to accelerate the adoption of AI responsibly, preserving national data sovereignty while ensuring the highest levels of security.

Dr. Mohamed Al Kuwaiti, Head of Cybersecurity Council for the UAE Government, stated the alignment between the UAE's efforts and those of leading global companies, praising Microsoft's proactive role in enabling secure artificial intelligence services and supporting the UAE's goals and strategies to build resilient and secure digital systems.

These efforts, he noted, further strengthen the UAE's position as a global leader in responsible AI.

By enabling in-country data processing for Microsoft 365 Copilot interactions in the UAE customers gain substantial advantages, including AI-driven productivity gains and enhanced regulatory compliance as all Copilot interaction data is securely stored and processed within the nation's borders under normal operations.

This approach also boosts performance through reduced latency. Microsoft 365 Copilot is fully compliant with the new AI Policy issued by the UAE Cyber security Council (CSC), ensuring adherence to national standards for responsible AI deployment and data governance.

Mansoor Al Mansoori, CEO of G42 International, said, "As Microsoft's strategic partner and the leading AI enabler for UAE government, G42 is proud to support this significant step forward in AI innovation. With this move, we are jointly positioned to help drive secure AI adoption across the UAE, empowering government entities to innovate confidently while maintaining the highest standards of data integrity and regulatory compliance."

This initiative is being developed in close collaboration with Cyber Security Council and Dubai Electronic Security Centre (DESC) to ensure appropriate controls for regulated entities and alignment with local data protection, AI regulatory requirements, and governance frameworks.

Yousuf Hamad Al Shaibani, Chief Executive of the DESC, commented, "As we embrace the monumental productivity gains of generative AI, our priority remains to ensure this innovation is deployed within a secure and trusted digital ecosystem. Copilot's powerful capabilities will be consistently governed by the principles laid out in the Dubai AI Security Policy.

DESC is committed to working in partnership with Microsoft to maintain the highest standards of data security and governance, reinforcing Dubai's position as the safest city in cyberspace while enabling a new era of hyper-efficient government and business operations."

"This is a pivotal moment in our partnership with the UAE," said Amr Kamel, General Manager of Microsoft UAE. "By enabling in-country processing for Copilot, we are not only accelerating AI adoption across the public sector but also ensuring that Copilot interactions are stored and processed within national borders-aligned with the UAE's digital goals. We are proud to support the UAE's leadership in shaping a secure, responsible, and inclusive AI future."

With over 152,000 new jobs projected from Microsoft's cloud ecosystem and a commitment to skill one million UAE learners in AI by 2027, this announcement further cements Microsoft's role as a trusted partner in the UAE's digital transformation journey.