DUBAI: Microsoft plans to invest more than $10 billion in the UAE, Saudi Arabia, Qatar, and Kuwait between now and 2030, including in cloud services infrastructure and artificial intelligence, a senior Microsoft executive has said

The American technology giant is making digital resilience a key part of its Middle East strategy as the Iran war intensifies.

Brad Smith, vice chairman and president of Microsoft, told Reuters that the company’s investments reflect “the continued building of infrastructure as well as the expansion of operations in the region.”

Gulf countries are pouring billions of dollars into AI as part of their drive to transform into global hubs that contribute to diversifying their economies away from reliance on oil and gas, counting on abundant land and access to low-cost energy to attract major cloud computing companies, including Microsoft.

Despite this, challenges remain, including access to advanced electronic chips, as well as the uncertainty created by the war, including attacks targeting data centers such as Amazon Web Services facilities in Bahrain and the UAE.

“We continue to make all the investments we planned before this conflict broke out, and in fact, we are expanding them ... It’s an ambitious and intensive spending schedule,” Smith said.

He added that Microsoft has provided support to its local partners during the conflict, including conducting digital resilience assessments, even in the first week of the conflict that erupted on Feb. 28.

Specific investments unclear

Digital Resilience Microsoft is currently helping Gulf countries in areas such as readiness and critical data protection, as part of an initiative to enhance digital resilience.

Smith said that it was not possible to detail the planned investments by country or specific project, citing factors including security aspects.

While the UAE has largely been spared from attacks since May, several other Gulf countries still face ongoing threats.

Microsoft also plans to invest more than $400 million in marine and terrestrial telecommunications infrastructure across the Middle East by 2030.

The company is also strengthening its partnerships with national companies specializing in AI, including Abu Dhabi’s G42 AI group, where Microsoft invested $1.5 billion to acquire a minority stake in the company in 2024, giving it a board seat currently held by Smith.

Smith said that Microsoft is collaborating with Saudi firm Humain, and Qatari company Kai, in specific areas that are a priority for them, noting that the company does not plan to make capital investments in these two companies.