Microsoft will enable in-country data processing for Microsoft 365 Copilot in the UAE, reinforcing AI security, compliance, and innovation.
DUBAI: Microsoft has announced a major step toward AI sovereignty in the UAE by enabling local data processing for Microsoft 365 Copilot, starting in early 2026. The new capability will be hosted in Microsoft’s cloud data centres in Dubai and Abu Dhabi, and will be exclusively available to qualified UAE organisations.
This strategic move reinforces Microsoft’s partnership with the UAE to advance its AI leadership while aligning with national priorities for data protection, regulatory compliance, and innovation. The new offering ensures that all Microsoft 365 Copilot UAE data interactions are processed and stored within the country’s borders, supporting the UAE’s robust cybersecurity and AI governance frameworks.
The announcement aligns with the UAE’s National Artificial Intelligence Strategy 2031 and Dubai’s Universal Blueprint for AI, and follows several key government initiatives, including the appointment of Chief Executive Officers for AI across ministries.
Omar Sultan Al Olama, Minister of State for Artificial Intelligence, hailed the initiative as a milestone in the country’s transformation. “This partnership represents a strategic step in embodying the UAE’s vision of building a future based on global partnerships,” he said.
Dr. Mohamed Al Kuwaiti, Head of the UAE Cybersecurity Council, also praised Microsoft’s commitment, noting its alignment with national goals to build resilient digital systems and responsible AI services. Yousuf Al Shaibani, CEO of Dubai Electronic Security Centre (DESC), highlighted that Copilot’s deployment will comply with the Dubai AI Security Policy, maintaining Dubai’s stature as a secure global tech hub.
This development ensures Microsoft 365 Copilot meets the UAE’s new AI policy standards set by the Cybersecurity Council, providing low-latency performance and full data sovereignty. It also allows government entities and enterprises to embrace AI-powered productivity without compromising national security or compliance.
Mansoor Al Mansoori, CEO of G42 International, stated: “With this move, we are jointly positioned to help drive secure AI adoption across the UAE, empowering government entities to innovate confidently.”
Microsoft confirmed that the rollout is part of a broader commitment to support the UAE’s digital future, which includes training one million AI learners and contributing to over 152,000 new jobs through its cloud ecosystem by 2027.
