US President Donald Trump on Friday announced a significant technology and trade agreement with the United Arab Emirates (UAE), granting the Gulf nation access to some of the world’s most advanced artificial intelligence (AI) semiconductors from American companies.
The agreement, finalised during Trump’s recent visit to Abu Dhabi, is a key diplomatic and economic milestone. It comes as the UAE continues to walk a delicate line between its longstanding alliance with the US and its growing economic ties with China, its largest trading partner.
The deal represents a major boost to the UAE’s ambitions to become a global leader in artificial intelligence. Trump stated that the chips will be provided under conditions ensuring secure management, including oversight of data centres by US companies.
“We’re making great progress for the $1.4 trillion that UAE has announced it intends to spend in the United States,” Trump said during his final stop on a tour of Gulf nations that also included Saudi Arabia and Qatar.
“Yesterday, the two countries agreed to create a path for UAE to buy some of the world’s most advanced AI semiconductors from American companies — a very big contract,” he added.
The chip agreement is expected to generate billions of dollars in business and deepen economic ties between the two countries. It also aligns with the UAE’s broader commitment, made in March, to invest $1.4 trillion in the United States over the next decade. The massive investment covers strategic sectors such as energy, AI, and manufacturing.
“This deal will accelerate the UAE’s plans to become a really major player in artificial intelligence,” Trump noted.
The move also signals the Trump administration’s confidence in American technological leadership and its readiness to work closely with allies on sensitive innovations under secure frameworks.
Melissa Enoch
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