Microsoft has entered into a strategic partnership with G42 to enhance artificial intelligence (AI) capabilities in the United Arab Emirates (UAE) and drive economic growth. The collaboration aims to co-innovate and deliver advanced AI solutions while expanding the existing data center infrastructure in the Emirates.
Peng Xiao, the group chief executive of G42, expressed that this partnership is not solely focused on technology but aims to create a holistic ecosystem for societal resilience and growth. By combining their expertise and forward-thinking approach, the collaboration aims to transform industries and create positive economic opportunities for individuals, communities, and society as a whole.
Microsoft plans to expand its Azure cloud service in the UAE through Khazna Data Centres, a joint venture between G42 and telecoms company e&, previously known as Etisalat. The expansion of Microsoft’s sovereign cloud offering will enable the UAE public sector and regulated industries to utilize new platform capabilities for securing sensitive data, accessing the latest cloud and AI features, and complying with local privacy and regulatory requirements.
In addition to expanding cloud services, Microsoft and G42 will focus on developing AI-enabled industry solutions tailored for sectors such as health, life sciences, energy, sustainability, and projects of national significance, including the Cop28 climate summit taking place in the UAE later this year.
Moving to a specialized cloud system offered by companies like Microsoft, Oracle, AWS, or SAP is more cost-effective for businesses compared to building their own infrastructure. It also reduces the overall cost of ownership, as businesses only pay for the selective services or resources they use over time.
Judson Althoff, Microsoft’s Executive Vice President and Chief Commercial Officer, emphasized the importance of data privacy, security, and compliance, stating that the partnership aims to help organizations responsibly innovate for the benefit of citizens and residents in the UAE. According to a study released last year, Microsoft expects its cloud services portfolio to contribute over $39 billion and create approximately 100,000 jobs in the UAE economy over the next four years.
The UAE is striving to establish itself as a global hub for the digital economy. The national digital economy is projected to grow to more than $140 billion by 2031, a significant increase from the current $38 billion. With initiatives like the cloud technology project launched by Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and the establishment of the Higher Committee for Government Digital Transformation, the UAE is actively working towards developing a digital economy and harnessing future technology.
By partnering with G42, Microsoft aims to play a crucial role in the UAE’s digital transformation journey. This collaboration will not only enhance AI capabilities but also contribute to the growth of various sectors, create economic opportunities, and make a lasting impact on the well-being of individuals, communities, and society as a whole.
