US Weighs Easing Export Limits on Advanced Chips to the UAE

The United States is reportedly considering loosening export controls on advanced semiconductors to the United Arab Emirates, according to a report by Bloomberg.

Sources indicate that former President Donald Trump may announce initial steps toward a bilateral chip agreement during his upcoming visit to the Gulf region, though no final decisions have been made. Negotiations are said to be gaining momentum.

In a significant diplomatic move, Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s National Security Adviser and Deputy Ruler of Abu Dhabi, visited Washington in March to advocate for easing the current US export restrictions.

Trump is expected to arrive in the UAE as part of a broader regional tour from May 13 to 16, placing him in the country on May 15, the same day new, more stringent US chip regulations are scheduled to take effect.

These updated rules, enacted in January, classify the UAE as a “second-tier” partner, capping shipments of advanced processors at 50,000 units, with potential for additional exports in exchange for specific security guarantees.

The rising global demand for AI-enabled chips has transformed semiconductors into a focal point of both technological competition and geopolitical strategy. These chips are crucial for powering artificial intelligence, data centers and next-generation consumer technologies.

Since 2023, the US has mandated export licenses for companies such as Nvidia to sell chips to Gulf countries, citing concerns that the technology could be transferred to China.

In response, the UAE has taken proactive measures to address Washington’s national security concerns. These include strengthening partnerships with American firms like Microsoft and reducing its exposure to Chinese technology investments.
The possible adjustment of US policy comes amid growing calls from industry leaders, such as Microsoft, for more flexible rules governing AI chip exports to trusted partners in the Middle East.