US eases AI chip export controls for the UAE, letting G42 and Core42 skip licenses

The U.S. Bureau of Industry and Security said on July 10 that it reclassified the United Arab Emirates to Country Group A:5, its highest-trust export tier. The change clears UAE and U.S. firms to receive advanced AI chips there without individual licenses.

The move rewrites the rules for one of the fastest-growing AI hardware markets outside the United States. Under the new classification, approved buyers can receive advanced-computing items, including AI chips and servers, using the License Exception Strategic Trade Authorization rather than applying case by case. The Bureau, part of the Commerce Department, said the change also covers certain controlled military items, commercial satellites and dual-use goods for oil and gas, desalination and civil nuclear power.

The Bureau said the reclassification aligns with the U.S.-UAE Artificial Intelligence Cooperation framework signed in May 2025 and reflects the UAE’s status as a U.S. Major Defense Partner. “This special status under the EAR is warranted in light of the ongoing U.S.-UAE military partnership and the UAE’s commitment to preventing the diversion and misuse of sensitive U.S. technology,” the Bureau said.

UAE AI champions G42 and its cloud arm Core42 are among the beneficiaries, along with U.S. companies operating in the country, including Apple, Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI, which no longer need individual licenses for AI chips and servers there.

The easing removes a licensing bottleneck but does not end oversight; A:5 status still carries diversion-prevention commitments the Bureau can enforce, and any evidence of chips reaching restricted end users could reopen the debate.