OpenAI Expands to UAE with Local Data Residency as ChatGPT Use Surges Among Young Residents

The United Arab Emirates is fast becoming a hub for artificial intelligence, with OpenAI reporting a threefold increase in its local user base over the past year. The tech giant revealed that about 60% of residents aged 18–24 and half of those aged 25–34 now use ChatGPT on a weekly basis, highlighting the rapid adoption of AI tools among the nation’s younger population.

In response to rising demand, OpenAI has launched local data residency options for the UAE, enabling organisations to store data securely within the country. This feature is now available for ChatGPT Enterprise, ChatGPT Edu, and OpenAI’s API platform, catering to businesses, public-sector entities, and educational institutions looking to scale AI usage while meeting national compliance, governance, and operational standards.

Enterprise and Education Adoption on the Rise

Several leading UAE institutions have already integrated OpenAI technologies into their operations, including G42, Mubadala, Abu Dhabi Investment Council, Aldar, MBZUAI, Khalifa University, NYU Abu Dhabi, Higher Colleges of Technology, United Arab Emirates University, and Tabby. These organisations are leveraging AI to improve productivity, research capabilities, and innovation, aligning with the UAE’s Vision 2031 strategy to strengthen the country’s AI ecosystem.

Farouk El Hamzawi, Head of Enterprise for OpenAI MENA, praised the UAE’s rapid AI adoption, describing it as “remarkable” and driven by a clear long-term strategy. He added that the new data-residency option gives institutions greater confidence and flexibility as they implement AI solutions.

A Secure and Compliant AI Environment

The UAE data residency feature is part of OpenAI’s commitment to enterprise-grade security. Key safeguards include:

• Encryption of data at rest and in transit

• Exclusion of enterprise and API customer data from AI model training by default

• Configurable retention policies supported by a Data Processing Addendum

This expansion builds on earlier initiatives such as Stargate UAE, a state-of-the-art data-centre cluster developed with the UAE government and partners including G42, Oracle, NVIDIA, Cisco, and SoftBank, designed to support long-term AI infrastructure in the region.

With AI usage surging among residents and businesses and universities adopting local, secure AI solutions, the UAE is solidifying its position as a global leader in innovation, technology, and digital transformation.

Related news:

OpenAI Launches ChatGPT Atlas — A Revolutionary AI-Powered Web Browser UAE President Participates in G7 Summit on AI and Energy in Italy Dubai Secures Bid to Host ICCV 2029, Premier Global Conference on Computer Vision and AI UAE Among Top 10 Nations for AI Companies, Aiming for $91 Billion GDP Boost