US Commerce Department Eases AI and Military Export Controls for UAE

The United States Department of Commerce elevated the United Arab Emirates to an A5 export control designation on July 10, 2026, loosening restrictions on the export of military equipment, commercial satellites, spacecraft, and energy technology. The new rule, scheduled for official publication on July 14, grants the UAE government and approved entities license-free access to advanced computing hardware and AI chips. This shift moves the UAE into a privileged country grouping typically reserved for NATO members and other close allies, making it the only non-member of multilateral export control regimes in that group.

Under the new regulations, UAE-based firms G42 and Core42, as well as US companies operating in the region—including Apple, Amazon, Google, Meta, Microsoft, OpenAI, Oracle, and xAI—can now acquire covered AI chips and servers without individual licenses. The Commerce Department also committed to favorably review license applications for MGX, a UAE-backed investment firm. Officials justified the upgrade by citing the UAE's role as a Major Defense Partner, its support during Operation Epic Fury, and its $1 trillion in foreign direct investment in the US.

Senator Elizabeth Warren condemned the decision as corrupt, alleging a conflict of interest. Warren claims the UAE royal behind G42 and MGX secretly bought a stake in World Liberty Financial, a crypto company affiliated with the Trump family. She further alleged that MGX used the company's USD1 stablecoin for a $2 billion investment in Binance. Democratic senators have called for hearings and requested that Secretary of Commerce Howard Lutnick testify regarding these financial ties.