Department of Commerce eases export controls affecting UAE technology transfers

Washington, July 10, 2026 — The United States is loosening a set of export controls on the United Arab Emirates, marking a significant shift in how sensitive US-origin technology may move to a key Middle East partner under the Export Administration Regulations.

The Commerce Department’s Bureau of Industry and Security announced that it will remove the UAE from EAR Country Groups D:3 and D:4 and reclassify it as Country Group A:5. The change will eliminate restrictions on support for the UAE’s unmanned aerial vehicle programs and make the UAE government and approved commercial entities eligible for license-free exports, reexports and in-country transfers under License Exception Strategic Trade Authorization.

The eligible items include Commerce-controlled military goods, certain commercial satellites and spacecraft, and dual-use items useful in oil and gas production, desalination and civil nuclear power generation, as well as other items available license-free to Country Group A:5 destinations.

Commerce also said it is approving the UAE government and certain companies to receive advanced computing items in the UAE without a license, including AI chips and servers. That approval is tied in the announcement to the US-UAE Artificial Intelligence Cooperation framework signed in May 2025 and the UAE’s reaffirmed investment commitments under that framework.

For exporters, financial institutions and screening teams, the update changes the regulatory profile of covered UAE transactions by expanding eligibility for license-free treatment in sectors involving defense, space, energy infrastructure, nuclear power and advanced computing. The announcement also underscores that the relaxed controls are limited to the UAE government and approved commercial entities where specified.

BIS said the regulatory changes are being implemented through a Federal Register notice available for public inspection.