US eases export curbs for UAE tech and AI

On July 10, 2026, the U.S. Department of Commerce’s Bureau of Industry and Security announced a significant change in how export controls apply to the United Arab Emirates. The UAE was moved out of EAR Country Groups D:3 and D:4 and reclassified into EAR Country Group A:5. This reclassification alters how U.S. exporters can ship certain sensitive technologies to the UAE, particularly in defense-related and advanced technology categories.

The decision was detailed in a rulemaking notice that was made available for public inspection ahead of formal publication in the Federal Register, scheduled for the following week. The notice sets out the new permissions and limitations that will govern technology flows between U.S. suppliers and UAE recipients once the rule takes effect.

With the UAE now in Country Group A:5, the government and approved commercial entities in the country become eligible to use License Exception Strategic Trade Authorization (STA) for a broader set of items. This includes certain Commerce-controlled military items, specified commercial satellites and spacecraft, and a range of dual-use products. Advanced computing items also fall within the scope of the expanded access, subject to the terms of the license exception.

Use of STA means that, for covered items and qualified end-users, U.S. companies can proceed with exports, reexports and in-country transfers without obtaining individual licenses in many cases. At the same time, the rule does not remove the underlying export-control framework, and restrictions remain in place for sensitive technology destined for prohibited end users or countries.

The rule has particular importance for advanced computing hardware such as AI chips and servers. Approved UAE entities named in coverage, including G42 and Core42, are identified as eligible recipients of certain advanced computing items under the new treatment. These entities can receive some AI-focused hardware without the need for a separate export license for each transaction, provided other control conditions are met.

The policy also covers approved U.S.-headquartered AI and cloud companies and their UAE subsidiaries. Examples cited include Amazon (AMZN), Apple (AAPL), Google, Meta (META), Microsoft (MSFT), OpenAI, Oracle (ORCL) and xAI. For these firms, the change promises more streamlined access to controlled equipment needed for UAE-based operations and data center projects, potentially accelerating deployment of AI and cloud infrastructure in the country.

In explaining the reclassification, the Commerce/BIS posting points to the UAE’s broader security relationship with the United States. It cites the UAE’s designation as a U.S. Major Defense Partner as a key factor supporting the upgrade in export-control status. This designation reflects close defense and security ties between the two countries.

The notice also references the UAE’s support for U.S. national security interests during Operation Epic Fury. These considerations are presented as part of the rationale for treating the UAE more like other close security partners under U.S. export-control law, while still maintaining safeguards to prevent diversion of sensitive technologies.