US eases technology and defence exports to UAE

The United States has sharply loosened export controls on the UAE, opening wider access to advanced artificial intelligence chips, military equipment, commercial satellites and other sensitive technologies.

The Department of Commerce reclassified the UAE under the Export Administration Regulations on Friday, placing it in a group that receives broader licence exemptions for controlled military and dual-use goods. The decision marks a significant upgrade in economic, defence and technology ties between Washington and Abu Dhabi.

The UAE government and approved companies will now be able to receive specified advanced computing products without obtaining individual export licences. The eligible items include high-performance AI chips, servers and related equipment produced by US technology companies.

UAE-based technology groups G42 and Core42 are among the approved recipients. American companies and their subsidiaries operating in the country, including Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle and xAI, will also be permitted to receive qualifying computing equipment under the revised rules.

Applications involving MGX, the Abu Dhabi-based investment company focused on artificial intelligence and advanced technology, will receive favourable consideration rather than automatic licence-free treatment.

The changes could accelerate the construction of large data centres and AI infrastructure across the UAE, which has sought to establish itself as a global hub for computing, cloud services and artificial intelligence development. Access to advanced processors has been one of the main constraints on those ambitions because the most powerful chips are subject to strict US national security controls.

Washington and Abu Dhabi agreed on an artificial intelligence co-operation framework in May 2025 that linked access to US technology with UAE investment commitments. The arrangement included matching investment in American AI infrastructure and safeguards aimed at preventing sensitive equipment from reaching restricted users.

The new measures also remove the UAE from export-control groups covering missile and chemical and biological weapons concerns and place it in Country Group A:5. Members of that category qualify for the Strategic Trade Authorisation licence exception, which permits the movement of specified controlled products between trusted governments and companies.

The UAE becomes the only country in the group that is not a member of the main multilateral export-control regimes. Most other participants are Nato members and longstanding US allies. Neither Saudi Arabia nor Israel has the same classification.

Beyond AI hardware, the changes allow licence-free exports, re-exports and transfers of some Commerce-controlled military goods, unmanned aerial vehicle technology, commercial satellites and spacecraft. Equipment used in oil and gas production, desalination and civil nuclear power generation may also qualify.

The measure is expected to create new opportunities for US semiconductor, aerospace, defence and cloud-computing companies. It may also strengthen the UAE’s ability to expand energy, water and digital infrastructure while increasing its reliance on American technology and standards.

The Commerce Department said the upgrade reflected the UAE’s status as a major US defence partner and its role in supporting American security objectives in the Middle East. The two countries have worked closely on counter-terrorism, maritime security and efforts to contain Iran and allied armed groups.

Their commercial relationship has also expanded. The UAE is the largest US trading partner in the Middle East, while its investment commitments in the United States have been valued at more than $1 trillion. Abu Dhabi funds and companies have placed capital in energy, infrastructure, technology, manufacturing and financial services.

The policy shift, however, has renewed concerns in Washington about technology security. US officials have previously examined the UAE’s commercial and technological connections with China, including the use of Chinese telecommunications equipment and the possibility that advanced computing products could be diverted to unauthorised customers.

G42 has reduced several China-related investments and partnerships while deepening its relationship with US companies. Microsoft announced a $1.5 billion investment in G42 in 2024 under an arrangement that included security assurances and oversight provisions.

Critics in Congress argue that licence-free access may weaken government scrutiny of individual shipments. Senator Elizabeth Warren said the decision raised questions about national security risks and financial links between prominent UAE investors and business ventures associated with President Donald Trump’s family.

Those concerns centre partly on Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and chairman of G42. An investment vehicle linked to him acquired a large stake in World Liberty Financial, the Trump family-backed cryptocurrency business.

The revised controls retain restrictions on exports to prohibited users, military end-users and sanctioned entities. US authorities can also investigate companies, suspend export privileges and impose penalties when equipment is diverted or safeguards are breached.