US Approves Export of Advanced Nvidia AI Chips to UAE and Saudi Arabia in Major Policy Shift
In a landmark decision, the United States has authorized the export of its most advanced artificial intelligence (AI) semiconductors to key firms in the Middle East. The US Commerce Department granted licenses allowing the UAE’s G42 and Saudi Arabia’s Humain to import up to 35,000 Nvidia Blackwell-class processors each—some of the world’s most powerful AI chips.
A Strategic Policy Shift
This move marks a significant shift in US technology trade policy, aligning with efforts to strengthen strategic ties with Gulf partners. Officials framed the decision as part of a strategy to promote US technological leadership globally, following commitments in the Trump administration’s AI Action Plan. The approvals come with strict conditions: both companies must meet rigorous security and reporting requirements, with compliance monitored by the Bureau of Industry and Security (BIS).
Accelerating Gulf AI Ambitions
For the UAE and Saudi Arabia, access to these high-performance GPUs is a major accelerant for their national AI strategies. Both nations have launched multi-billion-dollar initiatives to become global AI hubs and diversify their economies beyond oil. International Monetary Fund regional director Jihad Azour has called such investments a “game changer” for non-oil growth in the region.
Major tech firms like Microsoft, Oracle, and Cisco are already partnered on Gulf AI projects. Abu Dhabi’s G42, for instance, is building large-scale generative AI infrastructure in collaboration with US companies.
Criticism and Geopolitical Concerns
The decision has drawn criticism from some US national security experts and lawmakers. Critics warn that loosening export controls on such strategic technology could pose risks, potentially allowing rivals like China or Russia indirect access to advanced computing power via Gulf infrastructure. They argue that global oversight frameworks need updating to keep pace with rapid AI development.
Reshaping Global Tech Dynamics
This policy evolution underscores the Gulf’s rapid emergence as a significant player in the global AI ecosystem. The region’s financial resources, strategic location, and pro-innovation policies are attracting substantial investment and talent.
The approvals highlight how AI technology is becoming central to economic competitiveness and geopolitical alignment. As the UAE and Saudi Arabia build out their AI capabilities, this shift could influence global cooperation, innovation, and regulation in the tech domain for years to come.
