Abu Dhabi Announces Landmark AI-Cloud Partnership with Microsoft, G42

By Faizal

19 Mar 2025

Abu Dhabi Announces Landmark AI-Cloud Partnership with Microsoft, G42

Abu Dhabi has signed a major multi-year agreement with Microsoft and Core42, a G42 company, to implement a sovereign cloud system aimed at accelerating the emirate’s digital transformation and AI adoption.

The initiative, which aligns with the Abu Dhabi Government Digital Strategy 2025-2027, seeks to enhance government efficiency by processing over 11 million digital interactions daily through a high-performance cloud computing environment.

The agreement was formalized in the presence of Sheikh Tahnoon bin Zayed Al Nahyan, Deputy Ruler of Abu Dhabi, and Khaldoon Al Mubarak, Chairman of the Executive Affairs Authority.

Strategic Collaboration for an AI-Native Government

The deal was signed by Ahmed Tamim Hisham Al Kuttab, Chairman of the Department of Government Enablement – Abu Dhabi (DGE), alongside Microsoft Chairman and CEO Satya Nadella and G42 Group CEO Peng Xiao.

The Dh13 billion ($3.54 billion) initiative will establish Abu Dhabi as the world’s first fully AI-native government by 2027, deploying over 200 AI-powered solutions to streamline public services and optimize operational efficiency.

"This partnership is a critical milestone in our digital transformation. By integrating Microsoft's cloud technologies with G42's AI expertise, we are creating a powerful platform that will redefine government services," said Ahmed Al Kuttab.

AI and Cloud Innovation in Governance

Microsoft’s Azure-powered cloud infrastructure will be combined with G42’s AI expertise to support key government initiatives, including the next evolution of TAMM 3.0, Abu Dhabi’s digital government services platform.

The impact of TAMM 3.0 has already been significant:

90% reduction in offline customer visits
73% of transactions made fully digital and instantaneous

Microsoft CEO Satya Nadella emphasized the global significance of this initiative:

"AI will transform how governments operate, and Abu Dhabi is leading the way. This partnership sets a standard for AI adoption in the public sector."

Ensuring Data Sovereignty and Security

A key component of the agreement is the implementation of Core42’s Sovereign Public Cloud, powered by Microsoft Azure, ensuring that government entities maintain data security, privacy, and compliance while leveraging advanced AI technologies.

Peng Xiao, CEO of G42, highlighted the importance of data sovereignty in the partnership:

"Core42’s Sovereign Public Cloud, powered by Azure, ensures government entities maintain data security while leveraging cutting-edge AI innovation."

Abu Dhabi’s Commitment to a Digital Future

This landmark collaboration between Abu Dhabi, Microsoft, and G42 reinforces the emirate’s commitment to building a future-ready, AI-driven government.

With a robust investment in digital infrastructure and a clear roadmap for AI integration, Abu Dhabi is setting new global benchmarks in public sector digital transformation.

Written by

Faizal

Faizal is an experienced content creator and writer with a strong focus on business trends, economic developments, and emerging opportunities across the Gulf region. His work reflects a keen understanding of evolving markets, industry dynamics, and the factors shaping the region’s business landscape. With a research-driven approach, Faizal transforms complex market developments into clear, informative, and actionable insights for professionals, entrepreneurs, and business leaders. His content aims to provide valuable perspectives on key economic trends and developments influencing businesses across the Gulf.