The United Arab Emirates and the United States have recently strengthened their ties through several agreements, with the latest one announced on March 21, 2025.
The United Arab Emirates will invest in a 10-year investment framework in the US, committing $1.4 trillion after a meeting between US President Trump and UAE officials.
The framework will increase the UAE’s investments in the US, especially in AI, semiconductors, energy and manufacturing. ⁽¹⁾
What Does the Deal Include?
While some aspects of the framework are built on existing deals, a notable new component is an investment by Emirates Global Aluminium to construct the first new aluminum smelter in the US in 35 years, which could almost double domestic aluminum production. ⁽²⁾
This development underscores the UAE’s intent to deepen its economic footprint in the US, leveraging its vast financial resources to enhance bilateral relations.
The agreement was made from a meeting that Trump held last week with UAE national security advisor Sheikh Tahoon bin Zayed Al Nahyan in the Oval Office, along with a dinner attended by members of the UAE delegation, which included CEOs of many UAE sovereign wealth funds. ⁽³⁾
UAE investment fund ADQ has announced a $25 billion investment alongside Energy Capital Partners, where the investment will focus on energy infrastructure and data centers. ⁽⁴⁾
XRG, the international investment arm of UAE state oil company ADNOC, also announced its commitment to support US natural gas production and exports with an investment in the NextDecade liquefied natural gas export facility in Texas. ⁽⁵⁾
UAE-US Tech Relations
Previous talks under the Biden Administration had encountered some roadblocks when discussing ties with China. The Trump administration, however, appears more open to negotiation, with Sheikh Tahnoon’s visit—described as the first senior Gulf official meeting at the White House in Trump’s second term—signaling a new shift. ⁽⁶⁾
Despite this, building a domestic semiconductor network or securing unrestricted access to US chips remains complex, requiring not just financial investment but also technical expertise, infrastructure, and alignment with US security priorities.
And here’s why it matters—when a global powerhouse like the UAE doubles down on AI, it signals big things ahead for AI-driven markets and investors.
It could be a huge boost for the sector. And in the race for AI dominance, the US just got a $1.4 trillion push.
A Boost for AI?
The AI sector, along with energy and manufacturing could see a major boost from the deal due to targeted investments and enhanced economic collaboration.
The full extent will depend on execution details and broader market conditions, but the framework could position these sectors for potential growth.
