US, UAE finalize tech deal allowing AI chip imports: sources

The United States and the United Arab Emirates have finalized a technology framework agreement, according to sources familiar with the matter.

The signing is expected to take place later today during President Donald Trump’s visit to the UAE, the last stop of his three-country Gulf tour.

The agreement includes commitments from both nations concerning technology security. It comes as the US implements measures to limit China’s access to advanced semiconductor technology.

Details permit the UAE to import 500,000 advanced AI chips from Nvidia annually, starting in 2025.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ US-UAE tech agreement builds on decades of strategic cooperation

The new technology framework builds upon a deep foundation of US-UAE security collaboration that has been systematically developed since their formal defense cooperation agreement in 1994, which was significantly updated in 2019 1.

This technology agreement follows the precedent set by the 2009 US-UAE “gold standard” nuclear cooperation agreement (known as the 123 Agreement), which prohibited domestic uranium enrichment and established transparency standards for technology transfer 2.

The UAE has demonstrated its reliability as a security partner by participating in six coalition actions alongside the US over the past three decades, establishing a track record of alignment on sensitive security matters 1.

This history of successful cooperation on defense technology—including the sale of advanced F-16 Block 60 aircraft and the 2020 approval of F-35 Lightning II sales—has created institutional frameworks that enable more complex technology sharing arrangements like the AI chip agreement 1.

2️⃣ UAE navigates complex geopolitical AI landscape between US and China

The UAE has positioned itself as a leading AI adopter globally, with 52% of UAE IT professionals reporting comprehensive AI strategies in place, which is significantly higher than global averages 3.

The country’s AI ambitions are substantial, with PwC projecting AI could contribute approximately 14% of the UAE’s GDP by 2030 (around $96 billion), the highest proportional economic impact in the Middle East region 4.

The UAE’s balancing act between superpowers is exemplified by recent pressure on Emirati AI company G42 to divest its $100 million stake in Chinese company ByteDance while simultaneously pursuing US technology access 5.

Access to 500,000 advanced Nvidia AI chips annually would significantly accelerate the UAE’s national AI strategy, which is centrally coordinated through governmental leadership, including a dedicated Minister of State for AI 4.