The US just opened the AI-chip floodgates to the UAE

A Major Shift in US Export Policy

The United States has dramatically loosened its export restrictions on the United Arab Emirates, in a move that clears the way for license-free shipments of advanced AI chips, military equipment, commercial satellites and spacecraft to the Gulf state. The Commerce Department's Bureau of Industry and Security (BIS) announced it will significantly upgrade the UAE's status under the Export Administration Regulations (EAR), citing the country's standing as a US Major Defense Partner and its support in advancing US national security interests.

BIS will remove the UAE from EAR Country Groups D:3 and D:4, which will eliminate restrictions on support for the UAE's unmanned aerial vehicle programs, while reclassifying it as EAR Country Group A:5. The UAE will be the only country in this grouping that is not a member of multilateral export control regimes, joining NATO countries and other close US allies.

Consistent with the US-UAE Artificial Intelligence Cooperation framework signed in May 2025, Commerce is approving the UAE government and certain companies to receive advanced computing items in the UAE license-free, including AI chips and servers. The UAE has reaffirmed its commitment to the investment commitments in the framework, including matching investments in US AI digital infrastructure.

Who Benefits and Why Washington Acted

UAE companies G42 and Core42, and US companies and their subsidiaries operating in the country, including Amazon, Apple and xAI, are among those that no longer need licenses for AI chips and servers. Google, Meta, Microsoft, OpenAI and Oracle are also among the US firms that will no longer need licenses to receive advanced computing items in the UAE. The Commerce Department also says it will "favorably review" semiconductor and server export applications involving state-backed investment firm MGX.

In justifying the more favorable treatment, the Commerce Department said the US had worked with the UAE for decades to counter Iran and its proxies, including Hamas, Hezbollah and the Houthis, and noted that the UAE played a key role advancing US interests during Operation Epic Fury, referring to the US-Israeli strikes on Iran that began in February. The department additionally noted that the UAE was the largest US trading partner in the Middle East, and that its foreign direct investment in the United States was valued at over $1 trillion.

The decision has not been without controversy. Senator Elizabeth Warren quickly blasted the new rule, calling it "corrupt" in part because MGX used USD1, a stablecoin issued by the Trump family-affiliated World Liberty Financial, to complete its $2 billion investment in Binance. That transaction fueled questions about whether Trump's financial interests could influence US policy toward the UAE. However, there is no evidence in the rule that the UAE's financial dealings with World Liberty influenced Commerce's decision.

Sources:
US Department of Commerce BIS: Official Press Release on UAE Export Control Changes
Bloomberg: US Eases Export Rules on UAE, Allowing AI Chip Sales From Nvidia and AMD
CNBC: Trump Admin Eases Export Controls for UAE; Warren Blasts 'Corrupt' Provision