On July 10, 2026, the US Commerce Department's Bureau of Industry and Security (BIS) reclassified the United Arab Emirates into Country Group A:5 — the tier reserved for Washington's most trusted technology partners — clearing the way for license-free exports of advanced AI chips and servers to the Gulf state.

A first for the Arab world

The reclassification lifts the UAE out of the more restricted Country Groups D:3 and D:4, making it the first Arab country to hold A:5 status and the only A:5 member that is not part of multilateral export-control regimes such as the Wassenaar Arrangement. Advanced computing items can now flow under License Exception Strategic Trade Authorization (STA), implementing the US-UAE AI Cooperation Framework signed in May 2025.

Who benefits

BIS named the immediate beneficiaries: the UAE government plus approved entities including G42, Core42 and the investment fund MGX, alongside the Emirati operations of Amazon, Apple, Google, Meta, Microsoft, OpenAI, Oracle and xAI, none of which will need individual licenses for chips and servers. Nvidia is the chip vendor in frame; G42 separately won approval to import Nvidia hardware in June 2026. The upgrade also grants license-free treatment for certain military items, commercial satellites, and dual-use gear for oil and gas, desalination and civil nuclear power, and lifts prior restrictions on UAE drone programs.

The rationale

Commerce cited the UAE's role as a US Major Defense Partner and its support during Operation Epic Fury, plus Emirati commitments to prevent diversion of US technology and to make matching investments in the American AI buildout. Commerce Secretary Howard Lutnick framed the wider policy bluntly: "We will not allow adversaries to exploit American technology."

A fight in the Senate

The decision drew immediate fire. Senator Elizabeth Warren called it "corrupt," tying it to MGX's use of the Trump-linked USD1 stablecoin to fund a $2 billion Binance investment, and demanded that Lutnick and BIS Under Secretary Jeffrey Kessler testify before the Senate Banking Committee. Senate Democrats had alleged in June that G42 routed US chip technology toward programs strengthening China's missile systems, despite the firm's earlier pledge to cut China ties. The implementing Federal Register notice (doc 2026-14132) formally publishes July 14.