U.S. Commerce Department Eases Export Restrictions on UAE, Expanding Access to AI Chips, Military Equipment, and Satellites

On July 10, 2026, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced a sweeping upgrade to the UAE's export status under the Export Administration Regulations (EAR). The UAE was removed from Country Groups D:3 and D:4 and added to Country Group A:5 — a privileged tier that places the UAE alongside close U.S. allies for the purposes of export controls. The change took effect immediately on July 10, 2026. The reclassification was made under License Exception Strategic Trade Authorization (STA) and grants license-free access to a broad range of controlled technologies for approved UAE entities. Items now eligible for license-free export include advanced AI chips and semiconductor hardware (including Nvidia and AMD products), high-performance servers, military equipment and defense-related technologies, commercial satellites, and dual-use technologies relevant to oil and gas production, desalination, and civil nuclear power generation. Removal from D:3 and D:4 also eliminates prior restrictions on support for the UAE's unmanned aerial vehicle (UAV/drone) programs. No caps are set on the volume of chips or other goods that can be sold to approved entities. UAE companies G42 and Core42, along with U.S. companies operating in the UAE — including Amazon, Apple, xAI, Google, Meta, Microsoft, OpenAI, and Oracle — are among those that can now receive advanced AI computing items without export licenses. The Commerce Department also indicated it will "favorably review" export license applications for chips and servers destined for UAE company MGX. The Commerce Department cited the UAE's status as a U.S. Major Defense Partner and its support for U.S. national security interests, including Operation Epic Fury — the U.S.-Israeli strikes on Iran that began in February 2026. The department also noted decades of UAE cooperation in countering Iran and its proxies. The decision is consistent with the U.S.-UAE AI Cooperation Framework finalized in May 2025, under which the UAE was to receive hundreds of thousands of Nvidia AI chips. The UAE is the largest U.S. trading partner in the Middle East, with bilateral trade reaching $34.4 billion in the prior year and UAE foreign direct investment in the United States valued at over $1 trillion.

UAE AI chip export controls

• ▪The Department of Commerce moved the United Arab Emirates into Country Group A:5 under the Export Administration Regulations, making it the only country in that group that is not a member of major multilateral export-control regimes.
• ▪The United States Department of Commerce announced on July 10, 2026, that it is easing export controls on the United Arab Emirates, granting license-free access to advanced artificial intelligence chips and servers.
• ▪The revised export rules allow license-free access to advanced computing equipment for United Arab Emirates companies G42 and Core42, as well as United States companies operating in the region including Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle, and xAI.

China technology transfer risks

• ▪Critics of the export control relaxation argue that easing restrictions could allow China to access sensitive American technologies, citing G42's historical ties to Chinese telecommunications giant Huawei.
• ▪United States intelligence agencies obtained information in 2022 indicating that the United Arab Emirates transferred technology to Huawei via G42, which enabled China to extend the range of its air-to-air missiles.

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