The United Arab Emirates has committed to a 10-year, $1.4 trillion investment framework in the United States following meetings between top UAE officials and President Donald Trump. This framework aims to significantly boost the UAE's existing investments in key sectors such as artificial intelligence, semiconductors, energy, and manufacturing.
Details on how the UAE plans to reach the $1.4 trillion mark were not specified, as many of the announced deals were previously disclosed. The most notable new agreement seems to be an investment by Emirates Global Aluminium, which would establish the first new aluminum smelter in the U.S. in 35 years and nearly double domestic aluminum production.
The UAE, a major oil producer and longstanding security partner of the U.S., is keen to strengthen its investment relationship with Washington and is positioning itself as a leader in artificial intelligence, a key area for its economic diversification away from energy dependency.
In September, UAE President Sheikh Mohamed bin Zayed Al Nahyan met with former U.S. President Joe Biden to discuss enhancing cooperation in areas including AI, investments, and space exploration during the first visit of a UAE president to the White House.
Gulf sovereign wealth funds, such as Abu Dhabi's $330 billion Mubadala, are already significant investors in the U.S., and there are familial business ties between Trump and the region. In January, Trump invited Saudi Arabia to invest over $1 trillion in the U.S. economy over four years, including military equipment purchases. He indicated he would likely visit Saudi Arabia soon to finalize an investment agreement, coinciding with the kingdom's growing involvement in U.S. foreign policy.
The recent UAE agreement emerged from a meeting between Trump and national security adviser Sheikh Tahnoon bin Zayed Al Nahyan, along with a dinner hosted by Vice President JD Vance and several cabinet members for the UAE delegation, which included leaders from prominent UAE sovereign wealth funds and corporations.
Highlighted partnerships include a collaboration between UAE sovereign wealth fund ADQ, chaired by Sheikh Tahnoon, and U.S. private equity firm Energy Capital Partners, focusing on a $25 billion initiative aimed at investing in U.S. energy infrastructure and data centers. Additionally, ADNOC's international investment arm, XRG, established to support U.S. natural gas production and exports, has invested in the NextDecade liquefied natural gas export facility in Texas, a deal that was previously announced last year.