Microsoft has unveiled a major strategic initiative to support local data processing for Microsoft 365 Copilot within the UAE. This new capability will be available exclusively to eligible UAE-based organisations and marks a significant step in aligning with the country’s vision for AI, while ensuring that data handling meets local security and regulatory standards.
Set to launch in early 2026, this functionality will be hosted in Microsoft’s cutting-edge cloud data centres located in Dubai and Abu Dhabi. It is designed to empower qualified users with secure, in-country access to Microsoft 365 Copilot’s AI capabilities, reinforcing their ability to adopt AI confidently and responsibly.
The announcement aligns with the UAE’s growing ambition to lead globally in artificial intelligence and AI governance. With initiatives like the National Artificial Intelligence Strategy 2031, the Dubai Universal Blueprint for AI, and the appointment of Chief Executive Officers for Artificial Intelligence across various ministries, the UAE continues to solidify its role as a proactive force in responsible AI innovation.
Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, emphasized that the UAE, under visionary leadership, is establishing itself as a global epicenter for shaping the future.
He noted that the collaboration with Microsoft to build sovereign AI infrastructure is a key step towards realizing the UAE’s long-term strategic objectives. It reflects the nation’s focus on forming global partnerships that support the responsible implementation of AI while safeguarding national data and meeting the highest security standards.
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.
This collaboration enhances the UAE’s standing as a global leader in trustworthy AI development.
By enabling local data processing for Microsoft 365 Copilot, UAE-based organisations benefit from improved performance through reduced latency, enhanced productivity via AI integration, and robust regulatory compliance—since all user interaction data will remain stored and processed within the UAE during regular operations.
The initiative also complies with the UAE Cybersecurity Council’s recently released AI Policy, ensuring that Microsoft 365 Copilot aligns with national frameworks 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.”
The development of this offering is in close coordination with the Cybersecurity Council and Dubai Electronic Security Centre (DESC), ensuring that it meets the requirements for regulated sectors and is aligned with the UAE’s evolving AI governance and data protection regulations.
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.
He reaffirmed DESC’s commitment to collaborating with Microsoft to maintain Dubai’s reputation as a global leader in digital safety, while unlocking new efficiencies across government and business sectors.
“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 expected from Microsoft’s cloud ecosystem and an ambitious goal to train one million UAE residents in AI by 2027, this announcement strengthens Microsoft’s role as a strategic partner in the UAE’s digital future.
(Inputs from WAM)
