• The UAE committed to a 10-year, USD 1.4 trillion investment in the US, focusing on AI, semiconductors, and manufacturing.
• Emirates Global Aluminum will invest in a new smelter in the US within the next 35 years.
• The deal strengthens US-UAE ties, with the UAE seeking to lead in AI and diversify away from energy.

UAE Investments

What happened? The United Arab Emirates committed to a 10-year USD 1.4 trillion investment framework in the United States. This comes after top UAE officials met President Donald Trump. 

The investments intend to continue existing investments in the US specifically in AI infrastructure, semiconductors, energy and manufacturing.

There was however, one new investment by Emirates Global Aluminum. This is in order to build a new aluminum smelter in the United States within the next 35 years.

Why does this matter? The UAE has been a longtime security partner of the US. Thus, with this investment deal it is looking to deepen its ties with Washington. Additionally, the Emirates aims to be a global leader in AI, which is one of the sectors it is diversifying away from energy.

Economic Ties

What is the precedent? In September 2024, UAE President Sheikh Mohamed bin Zayed Al Nahyan met with former US President Biden to discuss cooperation in areas such as AI, investments, and space exploration.

What economic ties were established? This investment agreement stemmed from a meeting Trump held this previous week with UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan. Additionally, later Vice President JD Vance held a dinner with the UAE delegation which included heads of major UAE sovereign wealth funds and corporations.

One significant partnership resulting from this meeting was the Abu Dhabi sovereign wealth fund (ADQ) partnering with US private equity firm Energy Capital Partners. Furthermore, the collaboration is focused on a USD 25 billion initiative to invest in energy infrastructure and data centers in the US.

Previously, XRG, the international investment arm of UAE’s ADNOC, pledged to support US natural gas production and exports by investing in NextDecade, a natural gas export facility in Texas.