The US Department of Commerce announced on Friday, July 10, that it is upgrading the United Arab Emirates' status under its export control regulations. This decision will facilitate the transfer of specific military equipment, dual-use technologies, satellites, commercial spacecraft, artificial intelligence chips, and advanced servers to the UAE.

According to a statement from the Department of Commerce’s Bureau of Industry and Security, the UAE has been moved from Country Groups D:3 and D:4 to Group A:5. This group primarily consists of NATO members and Washington’s closest security partners, who benefit from broader exemptions for receiving controlled goods and technologies.

Under this change, the UAE government and approved commercial entities will be able to import or transfer certain Commerce-controlled military equipment, commercial satellites and spacecraft, and dual-use technologies used in the oil and gas, desalination, civil nuclear energy, and infrastructure sectors without requiring individual licenses. Restrictions regarding support for the UAE’s drone programs will also be lifted.

Another aspect of the decision involves bilateral cooperation on artificial intelligence. Within the framework of the US-UAE AI cooperation agreement signed in May 2025, the UAE government and several approved companies will have access to advanced AI chips and servers without the need for case-by-case licensing.

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According to a document published in the Federal Register, UAE companies G42 and Core42, as well as the UAE-based entities of American firms including Amazon, Apple, and xAI, are eligible to benefit from these facilities. The UAE has also reaffirmed its commitment to reciprocal investment in digital infrastructure and artificial intelligence in the United States.

The US Department of Commerce linked this decision to the UAE’s status as a "Major Defense Partner," the security cooperation between the two nations, and Abu Dhabi’s commitment to preventing the transfer or misuse of sensitive American technologies.

Washington’s statement also expressed appreciation for the UAE’s support of US security interests, including its role during the "Epic Fury" military operation against Iran. US officials stated that Washington has collaborated with the UAE over the past decades to counter Iran and its allied groups, including Hamas, Hezbollah, and the Houthis.

However, the UAE’s move to Group A:5 does not imply the liberalization of all US arms exports. This decision primarily covers goods, military equipment, and technologies under the jurisdiction of the Department of Commerce, while the sale of weapons overseen by the US Department of State remains subject to separate licenses and regulations.

The UAE is the first Group A:5 country that is not a member of any multilateral export control regimes, a group that does not even include Israel or Saudi Arabia. Washington also identified the UAE as its largest trading partner in the Middle East, stating that the value of the country’s direct investment in the United States exceeds $1 trillion.