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US Eases Export Controls on UAE for AI Chips and Military Tech

US Eases Export Controls on UAE for AI Chips and Military Tech

Post by : Bianca Haleem

The United States has eased export controls on the United Arab Emirates (UAE), making it easier to export advanced artificial intelligence (AI) chips, military equipment, commercial satellites, spacecraft, and several other high-tech products to the Gulf nation.

The new regulation, announced on Friday through the U.S. Federal Register, allows the UAE government and several approved companies to receive advanced computing products without needing export licenses. The decision reflects the growing strategic partnership between the United States and the UAE while creating new business opportunities for American technology companies.

UAE Government and Approved Companies Gain License-Free Access

Under the updated rules, the UAE government and selected organizations will no longer require export licenses for advanced computing products, including AI chips and servers.

Among the UAE-based companies benefiting from the decision are G42 and Core42. U.S. companies operating in the UAE, along with their local subsidiaries, are also included. These companies include Amazon, Apple, xAI, Google, Meta, Microsoft, OpenAI, and Oracle.

The Commerce Department also said it plans to favorably review future export license applications for AI chips and servers requested by UAE investment company MGX.

US Highlights Long-Standing Security Cooperation

The U.S. Commerce Department said the decision follows decades of cooperation between the United States and the UAE in addressing regional security challenges, including efforts against Iran and groups such as Hamas, Hezbollah, and the Houthis.

Read More: Danah Al Zarouni Wins UAE Title at Arab Reading Challenge 2026

The department also stated that the UAE recently played an important role in advancing U.S. interests during Operation Epic Fury, referring to the U.S.-Israeli military strikes on Iran that began in February.

UAE Moved Into Preferred Export Control Group

As part of the new regulation, the Commerce Department has moved the UAE into a country group that allows broader export license exceptions for military and dual-use products regulated by the department.

The UAE becomes the only country in this group that is not a member of multilateral export control regimes. Other countries in the same category mainly include NATO members and other close U.S. allies.

The department noted that regional countries such as Israel and Saudi Arabia are not part of this export control group.

Wider Access for Energy and Civil Nuclear Projects

The updated export rules also provide license-free access for certain technologies used in oil and gas production as well as civil nuclear power generation.

According to the Commerce Department, the UAE is the largest U.S. trading partner in the Middle East, while its foreign direct investment in the United States is valued at more than $1 trillion.

Agreement Builds on 2025 AI Chip Framework

The latest move follows a preliminary agreement reached in 2025, under which the United States agreed to allow the UAE to import hundreds of thousands of Nvidia AI chips.

The Commerce Department said Friday's decision aligns with the finalized May 2025 framework, which established the conditions for expanding advanced computing exports to the UAE.

Previous Licensing Concerns

Earlier export licenses issued to companies such as G42 had drawn attention because of concerns that sensitive U.S. technology could potentially reach Chinese customers.

A former Commerce Department official said that under the new system, approved companies will receive license-free access, reducing the possibility of internal debates within the U.S. administration over such approvals.

Senator Elizabeth Warren Raises Concerns

The policy change has drawn criticism from Senator Elizabeth Warren, the ranking member of the Senate Banking Committee.

In a statement, Warren said that the UAE royal associated with G42 and MGX had secretly acquired a 49% stake in World Liberty Financial, described as the Trump crypto company.

She also said that the Commerce Department was granting G42 license-free access to advanced AI chips while promising favorable treatment for MGX despite reported concerns about the possible diversion of sensitive technology to China and other national security risks.

July 11, 2026 10 a.m. 1322
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