WASHINGTON: The United States announced a major easing of export restrictions on the United Arab Emirates on Friday, removing barriers to sales of advanced AI chips and military items to the Gulf ally.

The commerce department said it would upgrade the UAE’s status under US export rules, a move that reflects the country’s designation as a major defence partner and its role in supporting American national security objectives, including in the war in Iran.

The department said it would remove the UAE from two restricted country groups, making it eligible for licence-free exports of controlled military items, certain satellites and spacecraft, and dual-use goods used in oil and gas production, desalination and civil nuclear power.

The changes will also lift restrictions on support for the UAE’s drone programmes.

The upgraded status “is warranted in light of the ongoing US-UAE military partnership and the UAE’s commitment to preventing the diversion and misuse of sensitive US technology”, the department said.

It further said it was approving the UAE government and certain companies to receive advanced computing items, including AI chips and servers, without export licences.

This was part of a cooperation agreement reached last year in which the UAE pledged to make matching investments in AI infrastructure in the United States.

The changes came as US tech giants and chipmakers look to expand their presence in the Gulf, where countries flush with oil and gas wealth have been investing heavily in artificial intelligence infrastructure.

The move drew sharp criticism from Senator Elizabeth Warren, who accused the Trump administration of rewarding Emirati businesses with close financial ties to the president.

Warren, a senior Democrat on the powerful banking committee, said the arrangement was proceeding “despite reported concerns about the diversion of sensitive technology to China and other national security risks”.

Published in Dawn, July 11th, 2026