How UAE BRICS Leadership is Built on Digital Transformation
Faced with the finite nature of hydrocarbon resources and accelerating global shifts towards renewable energy, the United Arab Emirates embarked on systematic economic diversification two decades ago, positioning digital transformation as the foundation for post-oil prosperity. Fast forward to today and the strategy has delivered measurable results, transforming the UAE into the wealthiest BRICS nation per capita at $82,000 according to the International Monetary Fund.
The rise in AI and digital infrastructure have proved to be sizable economic forces. Oilās contribution to GDP declined from 90%in 1971 to 26% in 2024, while non-oil sectors expanded to generate 1,342 billion dirhams (US$365bn): 75.5% of the UAE's total economic output.
Enterprise technology partnerships now drive economic growth through strategic alliances spanning cloud computing, AI deployment and sovereign digital infrastructure. The approach centres on systematic collaboration with global technology leaders, from Microsoft’s US$1.5bn investment in G42 to comprehensive digital government implementations serving regulated industries across multiple sectors.
“The data reflects positive momentum in the national economy and signals progress towards building an innovative, knowledge-based economy aligned with the UAE’s long-term development strategies,” Abdulla bin Touq Al Marri, UAE Minister of Economy, said recently.
G42 Microsoft partnership establishes enterprise AI infrastructure foundation
G42, the UAE’s AI technology group, has emerged as the cornerstone of the country’s enterprise technology transformation through strategic partnerships with global technology leaders. The company employs 25,000 staff and operates across data centres, AI infrastructure, sovereign cloud services and enterprise digital transformation projects spanning dozens of countries globally.
Microsoft’s US$1.5bn investment in G42 in April 2024 represents the largest technology partnership in UAE history, enabling enterprise-scale AI deployment across public sector and regulated industries.
“Through Microsoft's strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale,” said Peng Xiao, Group CEO of G42. “This partnership is a testament to the shared values and aspirations for progress, fostering greater cooperation and synergy globally.”
The commercial partnership operates under a first-of-its-kind binding agreement to apply world-class best practices for secure, trusted, and responsible AI development and deployment. Microsoft and G42 maintain elevated security and compliance frameworks for their joint international infrastructure, ensuring compliance with U.S. and international trade, security, responsible AI, and business integrity laws and regulations.
Brad Smith, Microsoft Vice Chair and President, also joined the G42 Board of Directors as part of the expanded collaboration. “Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations,” he said.
Core42 delivers enterprise sovereign cloud solutions with Nvidia partnership
Core42, formed through the merger of three G42 businesses including G42 Cloud, Inception and Injazat, operates as the UAE’s national-scale enabler for enterprise cloud and AI solutions. The company combines sovereign cloud and high-performance computing expertise with AI, cybersecurity and managed services capabilities for public sector and large enterprise deployments.
The company has established itself as the first in the UAE to offer scalable AI compute resources through deployment of Nvidia H100 Tensor Core GPUs, eliminating the need for customers to own physical infrastructure while providing tools to navigate complex data sovereignty and regulatory requirements. Core42 has deployed an Nvidia DGX SuperPOD with Nvidia DGX H100 systems and HGX accelerated systems supported by Dell PowerEdge XE9680 with Nvidia cards.
“Having witnessed the remarkable impact of our AI Cloud offering with our clients, we are thrilled to introduce Nvidia H100 GPUs in the UAE,” said Adrian Hobbs, CTO at Core42. “We are thrilled to announce this offering which promotes equitable access to high-performance compute infrastructure, empowering organisations of all sizes to run sophisticated AI models.”
Abu Dhabi Government deploys world’s first AI-native administration with enterprise partners
The Abu Dhabi Government has partnered with Microsoft and Core42 to create a unified, high-performance sovereign cloud computing environment capable of processing over 11 million daily digital interactions between government entities, citizens, residents, and businesses. The initiative aims to make the emirate the world’s first fully AI-native government by 2027.
“This agreement marks a pivotal step in G42's commitment to supporting Abu Dhabi's vision of becoming the world's first fully AI-native government,” says Peng. “Core42’s Sovereign Public Cloud, powered by Azure and enhanced by our sovereign controls platform, Insight, enables government entities to maintain data sovereignty while harnessing hyperscale innovation.”
The deployment represents an enterprise-scale implementation of AI-driven governance, establishing a global benchmark for digital transformation in public sector operations. Microsoft’s sovereign cloud offering allows UAE public sector and regulated industries to use new platform capabilities for securing sensitive data while providing access to the latest cloud and AI features available on Azure public cloud.
Enterprise technology partnerships expand through strategic investment framework
The UAE’s National Investment Strategy 2031 targets doubling foreign direct investment to US$354bn by 2031, with enterprise technology partnerships receiving priority focus through government incentives and infrastructure development programmes. The strategy emphasises AI, renewable energy and advanced manufacturing as key sectors for enterprise-scale technology deployment.
Recent enterprise partnerships include G42’s collaboration with Cisco to drive AI innovation and infrastructure development across public and private sectors. “This MoU with Cisco reflects our shared interest in exploring how AI infrastructure and innovation can be scaled responsibly and securely across markets,” says Peng.
The partnership between G42 and Kore.ai exemplifies the UAE’s approach to enterprise AI adoption, with both companies jointly developing AI-powered products across key enterprise sectors. Andrew Jackson, CEO of Inception, says. “Partnering with Kore.ai aligns perfectly with our mission to realise the adoption of AI power through the G42 Intelligence Grid and bring to market AI-powered products that drive real value,” says Jackson.
UAE Government digital strategy delivers $4bn federal savings through AI implementation
The UAE government’s comprehensive digital transformation strategy has generated federal savings of approximately US$4bn while achieving 99% digital transformation of government services, according to senior government officials speaking at the 2025 World Economic Forum. The achievement demonstrates the financial impact of systematic enterprise technology deployment across public sector operations.
Maryam Al Hammadi, Minister of State and Secretary General of the UAE Cabinet, confirms the scope of the government's digital transformation programme. “In the UAE, 99% of our government service is digitally transformed,” says Al Hammadi. “We have 90% satisfaction among our citizens, we have 100% of our citizens living in the UAE having a digitally unified number where they can access most of the government services.
“We have also a federal saving of around US$4bn. Our IT infrastructure is ranked first globally and we are also ranked first globally on internet speed. We are third globally in attracting AI talent. We are fourth globally in the number of foundational AI models released.”
The UAE government has deployed AI solutions for agricultural sector transformation, utilising generative AI technology to support smallholder farmers in improving crop yields. Mariam Almheiri, Head of the International Affairs Office at the Presidential Court, outlines the agricultural AI initiative.
“One of the most exciting innovations being introduced by the government is the use of the generative AI technology ChatGPT for food and agriculture,” says Almheiri. “We eventually want to get this to the smallholder farmers so that they have their agricultural advisers in their pockets.”
