The United Arab Emirates (UAE) is optimistic about gaining access to advanced semiconductors currently restricted by U.S. export controls, following a significant investment pledge aimed at strengthening ties with Washington.
Peng Xiao, CEO of the leading Emirati AI firm G42, stated that the UAE is making “very good and tangible progress” toward securing U.S. chips. His remarks come after the White House announced that the UAE has committed to investing $1.4 trillion in the U.S. over the next decade. This investment pledge follows a meeting between President Donald Trump and Sheikh Tahnoon bin Zayed Al Nahyan, Abu Dhabi’s national security adviser and the head of a $1.5 trillion business empire that includes G42.
The UAE has been increasing its investments in American technology and energy sectors with the goal of gaining easier access to crucial semiconductors, which are integral to its ambition of becoming a global AI leader. Currently, the UAE is classified under the second tier of the U.S. AI export framework, which restricts the types and power of processors it can import.
Sources familiar with Sheikh Tahnoon’s strategy revealed that the meeting with Trump included discussions about advocating for better access to chips and highlighting the UAE’s plans to build tech infrastructure in the U.S., including a $100 billion AI venture backed by MGX, which Sheikh Tahnoon chairs. The project was introduced during Trump’s first week back in office.
“We want this to be a win-win partnership,” said Xiao, who also serves on the UAE’s AI and Advanced Technology Council. He hinted that G42 could be involved in the broader investment commitment, although he did not provide specific details.
Executives from G42’s data and cloud divisions shared with Bloomberg this week that U.S. expansion is part of their plans, along with growth in Europe, Africa, and the Gulf. Last year, G42 began divesting from China and reducing its reliance on Huawei to align more closely with U.S. interests, setting the stage for a new partnership with Microsoft.
“The joint ventures between Emirati and American firms — whether in the UAE or U.S. — position us as a preferred partner,” said UAE AI Minister Omar Al Olama. “We’re not just another player anymore.”
