As the UAE continues to lead the charge in technological innovation, the importance of data sovereignty has never been more critical. In an era where data is the new oil, ensuring control over this valuable resource is paramount for national resilience, economic growth, and regulatory compliance.
Data sovereignty refers to the concept that data is subject to the laws and governance of the country in which it is collected, stored, or processed. In the UAE, this principle is not just a regulatory requirement but a strategic necessity. The nation has taken several significant steps to reinforce data sovereignty through initiatives such as the Personal Data Protection Law (PDPL) of 2021 and sector-specific regulations governing health and financial data. These measures ensure that sensitive information remains within the country’s borders, protected from extraterritorial jurisdiction and aligned with national interests.
The move to the cloud
The UAE’s public cloud market reflects the urgency and opportunity around digital transformation and data localisation. Public cloud spending hit $2.95 billion in 2024 and is projected to soar to $6.47 billion by 2028, growing at a staggering CAGR of 21.7%. Organisations across sectors are recognising the transformative power of cloud technologies – but with a sharp focus on sovereignty, compliance, and security.
At Microsoft, we are committed to empowering nations through our Cloud for Sovereignty initiative. This innovative approach combines the powerful capabilities of Microsoft Azure with country-specific sovereign and security controls, enabling government entities and regulated industries to accelerate digital transformation while maintaining the highest standards of data residency, compliance, and security.
Our collaboration with Core42, a sovereign cloud and AI infrastructure provider under the G42 group, exemplifies this commitment. Together, we have developed the Core42 Sovereign Public Cloud, a game-changing solution that leverages Azure’s hyperscale infrastructure and Core42’s Insight application to deliver a secure, compliant, and innovation-ready cloud environment tailor-made for the UAE. This solution is detailed in our recent whitepaper, “Balancing Innovation and Compliance in the AI Era,” which provides strategic insights and best practices for technology leaders to adopt and deploy sovereign enabled public cloud solutions effectively.
Sovereign cloud in action
The Core42 Sovereign Public Cloud addresses the unique challenges faced by regulated sectors such as government, banking, healthcare, and oil and gas. These industries require IT environments capable of real-time data analysis, high availability, and strong protection against cyber threats. By ensuring that data remains within UAE borders and is governed by local regulations, our sovereign cloud solution provides the necessary compliance and security while enabling organisations to harness the full potential of cloud-based innovation.
For the banking and finance sector, the Core42 Sovereign Public Cloud offers a secure platform for processing and storing data within UAE-based cloud infrastructure. Compliance features such as pre-built policy packs, audit logs, and robust access controls simplify adherence to regulatory requirements, enabling financial institutions to drive digital transformation through AI-powered customer experiences and fraud detection mechanisms. Similarly, government agencies can modernise digital services without compromising data sovereignty, safeguarding national interests while promoting innovation in public sector delivery.
In the healthcare sector, our sovereign cloud solution ensures that sensitive patient data is stored and processed within UAE borders, meeting strict national and international requirements on data residency and security. The encryption, access controls, and secure data-sharing capabilities protect against breaches or unauthorised access while enabling interoperability across national platforms such as Dubai’s Nabidh and Abu Dhabi’s Malaffi. AI-driven public health initiatives powered by sovereign cloud platforms enable predictive analytics for disease surveillance, personalised treatment plans, and real-time healthcare insights, driving better patient outcomes while maintaining regulatory compliance.
The oil and gas sector, with its large-scale operations and massive datasets, benefits from the secure and resilient infrastructure provided by the Core42 Sovereign Public Cloud. Real-time analysis of geological survey and exploration data, production records, and financial information is made possible, unlocking capabilities like predictive maintenance, supply chain optimisation, and advanced geological modeling. Compliance with national regulations is seamlessly integrated, allowing for secure data sharing among key stakeholders, including government regulators and international partners.
Building a secure and sovereign digital future
Microsoft’s commitment to empowering nations through Cloud for Sovereignty extends beyond providing secure and compliant cloud solutions. We are dedicated to supporting the UAE’s digital ambitions in data localisation, AI advancement, and cyber security leadership. Our strategic partnership with Core42 and our deep understanding of the UAE market dynamics enable us to deliver holistic, end-to-end cloud and AI solutions tailored for the UAE and broader regional markets.
As we continue to navigate the complexities of the digital era, it is essential for business leaders, government officials, and the tech community to recognise the value of sovereign public cloud solutions. By ensuring control over data while leveraging the scalability and security of the cloud, we can drive innovation, enhance regulatory compliance, and strengthen national resilience. Microsoft remains a trusted partner in this journey, committed to empowering the UAE to achieve its digital transformation goals and secure its position as a global technology leader.
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