US-UAE Eleventh Economic Policy Dialogue Focuses On Trade, Investment And AI Cooperation

The United States and the United Arab Emirates deepened their economic partnership during the eleventh Economic Policy Dialogue, held in Abu Dhabi on 15th January 2026. The meeting focused on trade, investment, technology, financial cooperation, and water security, underlining the scale of existing economic ties and setting out priorities for the coming decade.

The dialogue was co-chaired by Saeed Mubarak Al Hajeri, Minister of State in the UAE Ministry of Foreign Affairs, and Jacob Helberg, Under-Secretary of State for Economic Affairs at the US Department of State. Officials highlighted strong bilateral trade flows, long-term Emirati investment plans in the United States, and expanding collaboration in advanced technologies and critical minerals.

Participants stressed that the UAE remains the largest US trade partner in the Gulf region, a position held for almost twenty years. The United States continues to record a trade surplus with the UAE, supported by open markets and clear regulations. Officials agreed that this environment supports business confidence and strengthens wider economic growth in both countries.

Minister Al Hajeri reported that non-oil trade between the UAE and the United States exceeded $38 billion in 2024. Preliminary figures for 2025 show bilateral non-oil trade reaching $19.3 billion in the first half, a year-on-year rise of 3.4 percent. These flows support key American sectors, including energy, aviation, and technology supply chains.

To illustrate the scale and direction of trade, officials referred to recent bilateral data presented during the dialogue.

Officials underlined that direct trade ties support many jobs in each country and create opportunities for exporters and investors. They also pointed to growing activity in sectors such as advanced manufacturing, life sciences, energy, and critical minerals, where cooperation along value chains is becoming more structured and targeted.

The delegations reaffirmed the UAE’s plan to invest US$1.4 trillion in the United States over the next decade. This long-term commitment is expected to reinforce the UAE’s position as the largest regional economic partner for America and to sustain cross-border capital flows into infrastructure, technology, and industrial projects.

Economic security featured strongly in the discussions, with Under-Secretary Helberg emphasising trusted and resilient supply chains. Shared interests in advanced manufacturing, artificial intelligence, energy abundance, and digital infrastructure were highlighted as areas that can reinforce both economic security and national security, while also reducing vulnerabilities in critical sectors.

Both sides examined options for widening cooperation on critical minerals, which are essential for many clean energy and technology applications. The Under-Secretary pointed to the UAE’s role in promoting resilient supply chains and welcomed the country’s commitment to the Pax Silica framework, which seeks to support secure and transparent sourcing.

The delegations also considered joint investment in third-country projects to support diversified critical minerals supply chains. Such projects are intended to reduce supply concentration, encourage new production and processing locations, and link partners through infrastructure and logistics investments in strategic regions.

Pax Silica, connectivity, and the US-UAE Economic Policy Dialogue

In line with their focus on regional connectivity and stability, Al Hajeri and Helberg discussed how to operationalise the US-led Pax Silica Declaration. The initiative seeks to develop secure, resilient, and innovation-driven supply chains for technologies that underpin the artificial intelligence era, including advanced materials and related infrastructure.

The UAE officially joined Pax Silica on 14th January 2026, signalling early engagement with the framework. Officials noted that the UAE is contributing through targeted investment, infrastructure development, and partnership building, with attention to transport networks, data connectivity, and industrial zones linked to strategic technology production.

The United States and the UAE reiterated their support for the India-Middle East-Europe Economic Corridor, known as IMEC. Delegations particularly stressed the need to enhance port and rail capacity along the corridor, which is expected to support trade flows, reduce shipping times, and link Gulf markets with Europe and South Asia more efficiently.

AI, advanced technologies, and the US-UAE Economic Policy Dialogue

Technology cooperation formed a major part of the agenda. Both sides restated their backing for the US-UAE AI Acceleration Partnership, signed during President Trump’s visit to the UAE in May 2025. The partnership created a structured framework for US companies to export advanced AI semiconductors to American entities in the UAE and trusted UAE entities.

Under the partnership, security considerations and robust safeguards are built into export pathways. This has helped unlock substantial Emirati investment into US AI infrastructure, research and development centres, cloud architecture, and AI-enabled industrial applications, strengthening the commercial and research connections between technology ecosystems in both countries.

Al Hajeri and Helberg acknowledged strong progress on the proposed five-gigawatt AI campus under construction in the UAE, described as the world’s largest AI campus outside the United States. Technology companies, public bodies, universities, and research centres in both nations are already engaging with this project to gain access to advanced infrastructure and deeper innovation partnerships.

The delegations also discussed broader scientific collaboration, including the proposed Science and Technology Agreement. They reviewed ongoing and potential joint research in quantum computing, genomics, and space exploration, reflecting a shared view that long-term competitiveness in these fields will depend on cross-border cooperation between government, industry, and academia.

Financial systems and regulation in the US-UAE Economic Policy Dialogue

Financial cooperation was another central topic. Officials from both sides confirmed that they remain committed to a dynamic and efficient investment climate that supports mutual growth and innovation, while also managing risks. They reviewed efforts underway to address remaining trade barriers and to align regulations where practical for investors and businesses.

Participants examined existing and planned measures to counter illicit finance and strengthen sanctions coordination. They noted progress in building frameworks to protect the integrity of the global financial system and stated that they look forward to the formal launch of the UAE-US Treasury Engagement Framework on illicit financing, which is expected in 2026.

UAE officials welcomed the US Treasury Department’s Known Investor pilot program for the Committee on Foreign Investment in the United States, or CFIUS. The initiative is intended to streamline reviews for certain investors that meet specified criteria, while continuing to protect national security and maintain scrutiny of sensitive transactions in key sectors.

The dialogue further covered cooperation on investment, trade, finance, business ties, intellectual property, tourism, the digital economy, emerging technologies, energy, critical minerals, water, transportation, logistics, and infrastructure. Delegations also discussed joint efforts to promote global energy abundance, reflecting shared interests in reliable and affordable energy supplies.

On the multilateral front, both countries highlighted cooperation in advancing regional integration and their coordination within international forums, including the upcoming US-led G20. Al Hajeri and Helberg agreed to explore additional areas of collaboration among I2U2 countries, particularly in energy security, critical minerals, and water security, in line with shared strategic priorities.

Water security and environmental sustainability were also emphasised. Minister Al Hajeri noted that the UAE looks forward to co-hosting the 2026 United Nations Water Conference with Senegal at the end of 2026. This role was presented as part of wider efforts to raise the global profile of water-related challenges and long-term resource planning.

Both delegations reaffirmed that the Economic Policy Dialogue remains a key platform for managing the broad US-UAE relationship. By aligning work on trade, investment, technology, finance, connectivity, and sustainability, officials stated that the dialogue will continue to support strong economic relations and structured partnerships between the United States and the United Arab Emirates.

With inputs from WAM