UAE hoping to expand $1 trillion partnership with U.S. through AI investment.
The United Arab Emirates (UAE) is set to expand its $1 trillion partnership with the United States through significant investments in artificial intelligence (AI) and other strategic sectors. This move is part of a broader effort to advance the UAE-U.S. relationship into a new “geo-economic phase” focused on economic development and innovation.
Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, is scheduled to meet with U.S. President Joe Biden and Vice President Kamala Harris to discuss various regional issues, including the ongoing conflict in Gaza. However, the central goal of the visit is to realign economic priorities, moving beyond historical focuses on regional strife, oil, and defense.
The UAE aims to enhance cooperation in economic and security realms, as well as in critical sectors such as AI, renewable energy, climate change, and space exploration. This initiative was highlighted by Anwar Gargash, the Crown Prince’s senior diplomatic advisor, who emphasized that the visit is fundamentally about investing in the future through an economic perspective.
Earlier this year, OpenAI’s CEO Sam Altman suggested that the UAE could act as a global ‘regulatory sandbox’ for testing AI. Additionally, Microsoft made a significant $1.5 billion investment in G42, the UAE’s leading AI company. The UAE has also partnered with Black, Global Partners, and Mubadala-backed MGX investment firm to form a Global AI Infrastructure Investment Partnership, further demonstrating its strategic emphasis on American technology and AI.
The UAE-U.S. trade and investment alliance has flourished over more than fifty years, with bilateral trade volume reaching approximately $31 billion in 2023. The UAE has invested around $1 trillion in the United States, with sovereign wealth funds like Abu Dhabi Authority and Mubadala playing substantial roles in American economic sectors.
The UAE has also played a vital role as a strategic defense and security ally for Washington, hosting the American airbase in Al Dhafra and collaborating closely with the U.S. in military efforts in Afghanistan and Iraq. The country has contributed to the global coalition aimed at combating the Islamic State group and has been involved in operations against Al-Qaeda and its affiliates throughout the region, as well as conflicts in Libya, Sudan, and Yemen.
“We are charting a course for our vision over the next two decades,” Gargash stated, noting that the strategic relationship has evolved into what he describes as a ‘360-degree relationship.’ The meeting between the two leaders occurs amid the ongoing humanitarian crisis in Gaza, which continues to destabilize the region. Recent Israeli strikes on Hezbollah positions in Lebanon and developments regarding Iran’s assistance to Houthi rebels in Yemen targeting U.S. Reaper drones have complicated cease-fire discussions, particularly in light of the upcoming anniversary of the October 7 attack on Israel and the approaching American elections on November 5.
