The United Arab Emirates (UAE) is finalizing a deal with the US to gain broader access to advanced AI chips, expected to be announced during President Donald Trump’s upcoming visit to Abu Dhabi.

The agreement includes security commitments to prevent unauthorized access, particularly from China, in line with long-standing US export controls on advanced semiconductor technology.

This marks a shift in US policy, as the Trump administration moves to ease restrictions that previously limited access for allies like the UAE.

The UAE has invested heavily in AI and has adjusted its tech ecosystem by reducing Chinese hardware and investments to meet US conditions.

Despite these steps, Chinese firms like Huawei still operate in the UAE, and concerns remain about safeguarding advanced technologies from potential misuse.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ UAE strategically positions as a “third pole” in global AI competition

The UAE’s plan to build a 10-square-mile AI campus with 5 gigawatts of power capacity represents the largest such facility outside the United States1.

This massive infrastructure investment, coupled with the expected import of 500,000 advanced Nvidia AI chips annually starting in 2025, positions the UAE to become a significant global AI player beyond the traditional US-China duopoly2.

The UAE’s approach combines strategic partnerships with major US tech companies like Microsoft and G42 while making substantial financial commitments, part of its broader economic diversification strategy away from oil dependence3.

For context, these investments align with the UAE’s explicit goal to have AI contribute significantly to its GDP by 2031, demonstrating a long-term strategic commitment beyond mere technology acquisition3.

2️⃣ US export policy evolves from blanket restrictions to security commitments

The Trump administration’s approach to technology export controls represents a fundamental shift from the previous policy framework that divided countries into three rigid tiers of access4.

Under the Biden administration, Gulf states were placed in a restrictive “middle tier” with limited access to advanced AI chips, primarily due to concerns about technology transfer to China5.

The new framework focuses instead on securing specific commitments from partners, requiring the UAE to align its national security regulations with US standards and implement safeguards to prevent technology transfers6.