Microsoft has announced that it will introduce in-country data processing for Microsoft 365 Copilot in the United Arab Emirates, a move aimed at advancing secure and responsible AI adoption across the public sector. Starting in early 2026, qualified UAE organizations will be able to use Copilot with data stored and processed entirely within Microsoft’s local cloud infrastructure in Dubai and Abu Dhabi.
The investment aligns with the UAE’s growing emphasis on AI-driven governance and digital resilience, as outlined in the National Artificial Intelligence Strategy 2031 and the Dubai Universal Blueprint for AI. It also supports recent government initiatives such as the creation of a Chief Executive Officer for Artificial Intelligence role within ministries to oversee national AI implementation.
Microsoft’s decision reflects both the company’s regional strategy and the UAE’s expectations for data sovereignty. Local processing will allow government and regulated entities to use Copilot’s generative AI tools while ensuring compliance with the UAE Cyber Security Council’s new AI Policy. This framework mandates responsible AI use, data protection, and transparency for systems operating within national borders.
Omar Sultan Al Olama, UAE Minister of State for Artificial Intelligence, described the initiative as a key step toward balancing innovation with public trust, noting that local data handling enables organizations “to adopt AI confidently, knowing their data is protected and processed within our borders.”
Cybersecurity officials welcomed the move as a foundation for stronger digital resilience. Dr. Mohamed Al Kuwaiti, Head of Cybersecurity for the UAE Government, said Microsoft’s investment complements national efforts to create a secure, trusted digital ecosystem. Yousuf Hamad Al Shaibani, CEO of the Dubai Electronic Security Center, added that the partnership reinforces Dubai’s AI governance standards while promoting “a new era of hyper-efficient government and business operations.”
The rollout will take place in collaboration with the Cyber Security Council and the Dubai Electronic Security Center to ensure alignment with local AI and data governance frameworks. The setup promises reduced latency, greater control over sensitive information, and full compliance for regulated industries such as government, defense, and finance.
Amr Kamel, General Manager of Microsoft UAE, said the initiative underscores Microsoft’s long-term partnership with the UAE, calling it “a pivotal moment” that reflects both technological progress and regulatory trust.
Microsoft’s regional cloud ecosystem already supports significant employment and training programs, with more than 152,000 jobs projected and a commitment to equip one million UAE learners with AI-related skills by 2027. The addition of in-country processing for Microsoft 365 Copilot builds on that foundation, positioning the company as a central player in the UAE’s digital transformation agenda and in the broader effort to integrate generative AI securely across government and enterprise sectors.
