The United Arab Emirates (UAE) is actively seeking access to advanced semiconductors from the United States, as stated by Peng Xiao, the CEO of AI firm G42. This initiative is part of the UAE’s broader strategy to enhance its artificial intelligence capabilities and is associated with a significant investment pledge of US$1.4 trillion to strengthen its ties with Washington.

Currently, the UAE is classified under the second tier of the US AI diffusion rule, which restricts the import of crucial processors needed for its AI growth. Last month, a meeting between President Donald Trump and Sheikh Tahnoon bin Zayed Al Nahyan led to the announcement of an investment plan that includes funding from the Abu Dhabi-based MGX for a substantial US$100 billion AI infrastructure project initiated by Trump.

The UAE’s commitment to securing preferential access to advanced AI chips illustrates a growing trend of using investment diplomacy to navigate technology restrictions. This reflects a global shift where countries leverage their financial resources to gain strategic technological advantages, particularly in the context of the UAE’s goal to achieve tier 1 status in the US AI diffusion framework, which currently limits access to cutting-edge processors for most nations.

Since at least 2012, the UAE has been working to build its semiconductor capabilities, evidenced by a partnership between GlobalFoundries and the Masdar Institute to enhance semiconductor research and development in Abu Dhabi. The ongoing geopolitical landscape, characterized by the US placing 140 Chinese companies on its Entity List and restricting various chip-making technologies, has created a scenario where strategic partnerships are crucial for accessing advanced technology.

G42’s shift away from China, particularly its efforts to phase out Huawei equipment in favor of a partnership with Microsoft, highlights the impact of these restrictions on global technology alliances. As nations adapt to a new hierarchy shaped by semiconductor export controls, the UAE’s efforts represent an essential step in ensuring its competitive position in the global technology race.