Microsoft’s 2026 Digital Defence Report says the UAE ranked sixth globally for customer impact from cyber activity in the first half of 2026, as AI accelerates both attacks and defence.
The UAE ranked sixth globally for customer impact from cyber activity in the first half of 2026, according to Microsoft’s 2026 Digital Defence Report, as artificial intelligence accelerates both cyberattacks and defence.
Released during Cyber Security Month, the report highlights how AI, identity-based attacks and increasingly connected digital ecosystems are changing the nature of cybersecurity.
The findings are particularly relevant to the UAE as the country expands AI adoption across government, businesses and critical infrastructure.
Microsoft to deploy AI-powered cybersecurity capability in UAE
Microsoft, the UAE Cyber Security Council and Core42 have announced plans to deploy MDASH, Microsoft’s AI-powered cybersecurity capability, across UAE government entities.
The initiative is designed to help security teams identify vulnerabilities, prioritize risks and respond to emerging threats more quickly and at greater scale. It will also support requirements around sovereign security, privacy and operational resilience.
Yazan Khasawneh, Director of Cyber Security at Microsoft UAE, said AI is increasingly becoming part of how governments and businesses operate, making cybersecurity a core component of digital transformation rather than an additional layer added later.
“The latest Digital Defence Report shows why this matters: threats are moving faster and becoming more interconnected,” Khasawneh said.
He added that the focus is on helping organizations build the security and resilience required to adopt AI while continuing to innovate.
AI is changing both attacks and defence
Microsoft’s report finds that AI is changing cybersecurity on both sides.
Threat actors are using AI to operate faster and at greater scale, while security teams are using the technology to detect, investigate and disrupt threats more quickly.
However, expanding AI systems also create new data, identities, and access points that organizations must protect.
Despite increasingly sophisticated attacks, identity remains a major vulnerability. Attackers continue to exploit compromised accounts, credentials and people to gain access to organizations, making stronger authentication and protection of high-value identities key priorities.
Cyber risks are becoming more interconnected
The report also highlights the growing interconnectedness of cyber risk.
A compromised identity, supplier, platform or service provider can have consequences beyond the original organization, potentially affecting multiple companies, sectors and countries.
This makes coordinated threat intelligence, public-private collaboration and operational resilience increasingly important.
Microsoft recommends that organizations focus on three areas: protecting identities, responding faster and building resilience.
The measures include strengthening authentication, reducing dependence on passwords, accelerating threat detection and response, regularly testing incident-response plans and designing critical systems to continue operating during disruptions.
UAE ranks sixth globally for cyber activity impact
Microsoft said its data showed the UAE ranked sixth globally among countries where customers were most frequently impacted by cyber activity during the first half of 2026.
The country ranked second across the Middle East and Africa.
Microsoft’s analysis draws on visibility across the global digital ecosystem and more than 165 trillion security signals each day.
The report identifies three major shifts shaping cybersecurity in 2026: AI is accelerating both attacks and defence, identity remains a primary route for attackers to gain access, and cyber incidents are increasingly creating consequences beyond the original target.
For the UAE, the findings highlight the growing importance of building cybersecurity alongside AI adoption.
As AI becomes more deeply integrated into government services, enterprise operations, and critical systems, the ability to protect identities, detect threats quickly, and maintain operations during disruption will become increasingly important to the country’s digital-security strategy.
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Microsoft report says UAE was among the most frequently affected by cyber activity in the first half of 2026.
Source: Gulf News
