Recently, the US Department of Commerce’s Bureau of Industry and Security (BIS) announced a significant shift in the United Arab Emirates’ status under the Export Administration Regulations (EAR). The UAE has been removed from the restricted country lists for Categories D:3 (chemicals and biologicals) and D:4 (missile technology), and upgraded to Category A:5. This policy adjustment will greatly relax restrictions on the UAE’s access to advanced artificial intelligence chips, commercial satellites, and controlled military equipment from the United States, further enhancing the strategic partnership between the two countries.
The Department of Commerce submitted related regulatory documents to the Federal Register last Friday, July 10th. Although the document is currently in draft form and available for public viewing as a PDF download, the official publication is scheduled for next Tuesday, July 14th, which will carry the full legal weight and public notice effect.
In a detailed regulatory document spanning several pages, the US government formally removes the UAE from the D:3 and D:4 restricted country lists and elevates it to the highest friendly designation, A:5. This move opens up defense trade that was previously restricted, such as the export of drones to the UAE for defense exhibitions, which was not possible under the previous restrictions.
The UAE now joins the ranks of A:5 countries, enjoying similar privileges as NATO member countries and other core allies. This places the UAE in a select group of nations granted such status, a position not yet attained by most Middle Eastern countries.
However, concerning the export of cutting-edge artificial intelligence chips, the US Department of Commerce has opted for a precise “entity whitelist” mechanism rather than a blanket license approach, employing supplemental regulations under “Supplement No.8”.
The new rules specify that UAE government entities (except state-owned enterprises) now have the privilege of acquiring advanced computing equipment without the need for individual export licenses.
Additionally, leading US tech giants such as Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle, and xAI, along with their subsidiaries in the UAE, are included in the whitelist. They will no longer require export licenses when importing artificial intelligence chips and servers.
Local UAE tech giants like Group 42 (G42) and Core42 have been granted license exemptions, albeit with stringent sunset clauses. Failure to fulfill necessary adjustments within 270 days following the new regulations, such as aligning critical business operations or ownership structures with US requirements, will result in the loss of exemption status, requiring a reapplication for review.
Moreover, for chip export applications from UAE investment company MGX, the US Department of Commerce has pledged a “favorable review.”
This policy adjustment aligns with the UAE’s role as a key defense partner of the US. The Department of Commerce stated that this move recognizes the UAE as a “major US defense partner” and its support for US national security interests.
The Department of Commerce highlighted the crucial role played by the UAE in the “Operation Epic Fury” operation against Iran at the end of February, as well as its long-term assistance in countering Iranian proxies like Hamas, Hezbollah, and Houthi militants.
Emphasizing the UAE’s significance as a vital trade partner in the Middle East with substantial direct investments covering various sectors such as artificial intelligence, aviation, metals, and energy, the new regulations will provide the country with more license exemptions for procuring US-controlled military and dual-use items.
This development solidifies the artificial intelligence cooperation framework signed between the US and the UAE in May 2025. Under this agreement, the UAE has committed to equivalent investments in US artificial intelligence infrastructure in exchange for importing high-grade chips from companies like Nvidia and AMD to establish local AI data centers.
To alleviate concerns about advanced technologies potentially flowing to third countries, the US Department of Commerce emphasized that the UAE has established a leading strategic trade control system in the region. Additionally, US Commerce Department officers stationed in the UAE closely monitor the flow of sensitive materials.
Despite the presence of whitelist and oversight mechanisms, issuing licenses to companies like G42 remains sensitive due to their past close commercial and financial ties with entities like BGI Genomics, China National Pharmaceutical Group (Sinopharm), Huawei, ByteDance, Tencent, and JD.com.
Following US pressure, G42 has announced the withdrawal of all Chinese investments, removal of Huawei equipment, and a shift towards deep collaboration with US companies.
This decision has sparked strong criticism from Senator Elizabeth Warren (Democratic party from Massachusetts), a heavyweight member of the Senate Banking Committee.
Warren expressed discontent in a statement, stating, “Despite concerns about sensitive technologies potentially transferring to China and posing other national security risks, the Department of Commerce still grants G42 privileges to access advanced AI chips and promises preferential treatment to MGX.”
As of now, the US Department of Commerce has not responded to requests for comments on Warren’s statement and media inquiries.