US, UAE push deeper cooperation on AI and supply chains at Abu Dhabi economic talks

The United States and the United Arab Emirates agreed to expand cooperation on artificial intelligence, economic security and resilient supply chains during high-level economic talks in Abu Dhabi on January 15, underscoring a growing focus on advanced technologies and strategic industries.

Senior officials from both countries met for the 11th US-UAE Economic Policy Dialogue, where discussions centered on AI infrastructure, critical minerals, trade facilitation and regional connectivity.

The talks were co-chaired by UAE Minister of State Saeed Mubarak Al Hajeri and US Under Secretary of State for Economic Affairs Jacob Helberg. Officials said the dialogue focused on strengthening long-term economic cooperation as technological competition and supply-chain vulnerabilities reshape global trade.

Participants highlighted the UAE’s position as the United States’ largest trading partner in the Gulf region, a role it has held for nearly two decades, while noting that Washington continues to record a sizeable trade surplus in its commercial relationship with Abu Dhabi.

Both sides emphasized that open markets, predictable regulation and investment-friendly policies have supported steady growth in bilateral trade. Cooperation is expanding across sectors including advanced manufacturing, energy, life sciences, aviation and digital technologies, officials said.

According to figures shared during the talks, non-oil trade between the two countries exceeded $38 billion in 2024. Preliminary data for 2025 showed bilateral non-oil trade reached $19.3 billion in the first half of the year, representing year-on-year growth of 3.4 percent and supporting thousands of jobs in both economies.

Economic security featured prominently in the dialogue, with US officials stressing the importance of building trusted supply chains and closer coordination in areas such as advanced manufacturing, artificial intelligence, energy abundance and digital infrastructure.

The two sides also discussed expanding cooperation on critical minerals, including coordinated investment in third-country projects aimed at diversifying sources and reducing supply-chain risks. US officials cited the UAE’s growing role in promoting resilient supply frameworks.

In this context, officials reviewed progress under the US-led Pax Silica initiative, which seeks to develop secure and innovation-driven supply chains for technologies central to the artificial intelligence era. The UAE formally joined the framework on January 14, signaling deeper engagement in the initiative.

The delegations reaffirmed support for the India–Middle East–Europe Economic Corridor, highlighting the importance of increasing port and rail capacity to improve regional connectivity and trade flows.

Artificial intelligence cooperation emerged as a central pillar of the talks. Officials reviewed progress under the US-UAE AI Acceleration Partnership, signed during President Donald Trump’s visit to the UAE in May 2025, which established a pathway for US companies to export advanced AI semiconductors to trusted Emirati entities under enhanced security requirements.

Officials also noted progress on a proposed five-gigawatt AI campus under construction in the UAE, which is expected to become the largest such facility outside the United States. The project is designed to support research and development, cloud infrastructure and AI-enabled industrial applications.

Discussions extended to financial cooperation, including joint efforts to counter illicit finance, strengthen sanctions coordination and safeguard the integrity of the global financial system. Officials said they expect the formal launch of the UAE-US Treasury Engagement Framework on illicit financing in 2026.

The talks also covered cooperation in emerging technologies, water security and sustainability. UAE officials reiterated plans to co-host the 2026 United Nations Water Conference with Senegal, highlighting the country’s role in elevating the global water agenda.

Both sides said the Economic Policy Dialogue remains a key mechanism for aligning strategic priorities and advancing economic cooperation between the United States and the United Arab Emirates.