US makes it easier to export certain military items, AI chips and commercial satellites to the UAE

WASHINGTON - The US Department of Commerce loosened export controls on the United Arab Emirates on July 10, making it easier to export military items, certain commercial satellites and spacecraft, according to a US government posting in the Federal Register.

The UAE government and approved companies also will now be able to access advanced computing items licence-free, the posting said.

UAE companies G42 and Core42 and US companies operating in the country, including Amazon, Apple, and xAI, are among those that no longer need licences for AI chips and servers.

In providing the more favourable treatment for certain exports to the UAE, the Commerce Department said the US had worked with the country for decades to counter Iran and its proxies, including Hamas, Hezbollah and the Houthis.

“More recently, the UAE played a key role advancing US interests during Operation Epic Fury,” the posting said, referring to the US-Israeli strikes on Iran that began in February.

Additionally, it noted, 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 US$1 trillion (S$1.3 trillion).

Under the new regulation, the Commerce Department moved the UAE into a country grouping that allows more licence exceptions for military and dual-use items controlled by the department.

The UAE will be the only country in the group that is not a member of multilateral export control regimes. Other countries in the grouping include NATO countries and other allies.

Other countries in the region such as Israel and Saudi Arabia are not members of that group. REUTERS