The US Commerce Department placed the United Arab Emirates in export category A:5, its highest tier, on July 10, 2026. The country can now buy advanced AI chips and other sensitive technology without individual licenses, the first Arab nation to do so. The decision builds on the AI cooperation agreement both countries signed in May 2025.
New Category Opens Access to AI Chips
The Bureau of Industry and Security, the export control authority within the US Commerce Department, removed the UAE from the existing country groups D:3 and D:4 on July 10, 2026, and placed the country in the privileged group A:5. That classification has so far mostly applied to close US allies that belong to their own multilateral export control regimes, a group the UAE had not previously joined. With the new status, the UAE gains access to the Strategic Trade Authorization license exception, known as STA, along with further exceptions covering government transactions, technology transfer, and aircraft and spacecraft goods.
According to BIS, several product categories are affected: AI chips and servers for data centers, certain military goods, communications satellites and spacecraft, and equipment for oil and gas production, desalination, and civil nuclear power. The UAE government and specifically approved commercial entities in the country may now import these goods without individual licenses. Strict controls had previously delayed access to advanced US computing technology considerably; trade outlet AGBI described the prior situation as a technology fast lane the UAE had long been shut out of.
UAE Must Meet Investment and Corporate Restructuring Conditions
The relaxation comes with conditions attached. It builds on the AI cooperation framework both countries signed in May 2025, which commits the UAE to investing in the build-out of US AI infrastructure. The Commerce Department explicitly ties the new export category to compliance with those commitments and to effective measures against the diversion of sensitive technology to third countries. According to the agency, the classification can in principle be reversed if these commitments are not met.
A further condition concerns two central players in the UAE’s AI industry: G42 Holding and its subsidiary Core42 must become US-controlled companies within nine months, according to the Commerce Department, or reapply for privileged status. Trade publication Export Compliance Daily reports that the rule ties directly to the corporate structure of both firms, which had previously faced heightened scrutiny from US authorities over possible ties to China. The deadline is meant to prevent sensitive technology from reaching unauthorized buyers through indirect channels.
Reactions Range from Praise to Security Concerns
UAE Minister of State Saeed Al Hajeri called the decision a historic step, according to Gulf News, noting that his country is the first Arab nation to reach A:5 classification. He said the recognition reflects international confidence in the UAE’s export control and compliance framework and confirms the country’s role as a reliable US partner. Middle East expert Mohammed Soliman of consultancy McLarty Associates told AGBI the step marks a significant moment for the technological partnership between both countries.
Not every observer agrees. Chris McGuire of the Council on Foreign Relations warns, according to AGBI, of substantial security risks from the eased rules and expects that building AI capacity within the US itself could slow as capacity shifts to the UAE instead. AGBI reports that the full version of the new rule is expected to be published in the Federal Register on July 15, 2026 – independently unverified so far is which specific US companies will be first to benefit from license-free chip shipments to the UAE.
What matters now is how quickly G42 Holding and Core42 actually carry out the required restructuring into US-controlled companies, since that determines whether the benefits of the new export category remain in place long-term. The Federal Register publication expected on July 15 should provide additional detail on deadlines and exceptions that are so far only known in outline.
