UNITED ARAB EMIRATES — The U.S. Commerce Department announced it will ease export controls on the United Arab Emirates (UAE), granting favorable review for license applications involving advanced computing and defense-related technology. The new export rule is scheduled for official publication on Tuesday, July 14, 2026.

The Commerce Department stated it "will significantly upgrade the status of the United Arab Emirates" under export regulations. An unpublished 17-page rule in the Federal Register indicates that the Commerce Department's Bureau of Industry and Security will favorably review applications involving semiconductors and servers bound for the UAE, specifically from MGX, a UAE-backed investment firm.

The new rule grants the UAE government, Abu Dhabi AI conglomerate G42, and its cloud subsidiary Core42 access to license exceptions for certain advanced-computing equipment. Additionally, major technology companies including Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle, and xAI will receive streamlined treatment for some controlled equipment used in their UAE operations and data center projects under this new regulation. The rule also reduces the need for separate export licenses for some chip sales to the UAE.

The Commerce Department cited the UAE's status as a U.S. Major Defense Partner and its support in advancing U.S. national security interests, including Operation Epic Fury, as reasons for the regulatory changes. The new rule eases controls on some military, satellite, and spacecraft-related exports to the UAE. It does not eliminate restrictions intended to prevent sensitive technology from reaching prohibited users or countries such as China.

Senator Elizabeth Warren criticized the new rule, calling it "corrupt." Warren, the ranking Democrat on the Senate Banking Committee, stated, "Now, Trump's Commerce Department is giving G42 license-free access to advanced AI chips and promising favorable treatment for MGX, despite reported concerns about the diversion of sensitive technology to China and other national security risks." MGX is a backer of OpenAI and Anthropic. Warren called for Commerce Secretary Howard Lutnick and BIS Under Secretary Jeffrey Kessler to testify before Congress. She and other Senate Democrats also called for hearings into whether UAE-linked investments in World Liberty influenced administration decisions on advanced chips, arms sales, and other policies. There is no evidence in the rule that the UAE's financial dealings with World Liberty influenced the Commerce Department's decision. Kessler is scheduled to testify before the House Committee on Foreign Affairs.

Why It Matters

The U.S. Commerce Department's decision to ease export controls on advanced computing and defense technology for the UAE represents a shift in U.S. regulatory policy toward the Gulf nation. This change is intended to streamline the process for transferring sensitive technology, impacting key sectors including artificial intelligence and defense. The Commerce Department justifies this by the UAE's national security contributions and its status as a Major Defense Partner.

However, the move has drawn criticism from some members of Congress, who have raised concerns about the potential for diversion of sensitive technology. The new rule's implementation is set for July 2026, providing a timeframe for further review and debate within political and industry spheres regarding its implications for technology transfer and national security.