UAE-US Economic Relations: Trade, Investment, and Strategic Cooperation

The UAE is strengthening its trade and investment ties with the US through significant investments in energy, technology, and infrastructure, highlighted by a US$25 billion joint venture and a US$1.4 trillion investment framework. This deepening collaboration reflects a shift towards high-value sectors, including AI and clean energy, reinforcing the UAE’s strategic role in global markets.

By Giulia Interesse

The United Arab Emirates (UAE) has been strategically strengthening its economic and diplomatic partnership with the United States, positioning itself as a pivotal player in global trade and investment. This collaboration has gained significant momentum, highlighted by major joint ventures, growing investments, and high-level diplomatic engagements.

A notable example is the US$25 billion joint venture between Abu Dhabi Developmental Holding Co. (ADQ) and US-based Energy Capital Partners (ECP), focused on expanding energy infrastructure to support artificial intelligence (AI) applications and data centers.

This is just one part of a broader trend that includes a US$1.4 trillion investment framework, underlining the UAE’s deepening economic footprint in the US and its strategic shift towards high-value sectors like technology, clean energy, and advanced manufacturing.

In this article, we explore the expanding UAE-US trade and investment relationship, including key developments in bilateral trade, strategic commodities, and major investments in energy and technology. We will also examine the role of diplomatic engagements in fostering these ties and highlight the UAE’s strategic position as both an investor and supplier in critical sectors, such as clean energy, artificial intelligence, and industrial infrastructure.

Learn more about investing in the UAE:

• Why invest in UAE
• How to Set Up a Company in UAE Free Trade Zones

Expanding UAE-US trade and investment relations

Bilateral trade

The UAE and US share a long-standing trade relationship, with the UAE consistently ranking as the largest export market for US goods in the Middle East. In 2024, bilateral trade reached US$34.4 billion, with the US enjoying a US$19.5 billion trade surplus—a reflection of the strong economic integration between the two countries.

Beyond traditional trade, strategic commodities like aluminium have become a focal point of UAE-US commercial ties. The UAE is the second-largest supplier of aluminium to the US, accounting for 8 percent of total US consumption in 2024.

In early 2025, US imports of UAE aluminium surged as buyers sought to stockpile shipments ahead of newly imposed 25 percent tariffs. In the first eleven days of March alone, the UAE exported 68,560 metric tonnes of aluminium to the US—more than four times the volume exported in all of March 2024.

Despite the tariff introduction, analysts suggest that UAE producers—particularly Emirates Global Aluminium (EGA)—remain well-positioned to compete in the US market. According to industry estimates, EGA is among the lowest-cost aluminium producers globally, giving it a competitive edge over Canadian suppliers, who currently account for 70 percent of US aluminium imports.

As US importers seek alternative supply sources amid trade tensions with Canada, the UAE could expand its foothold in the American metals market, further reinforcing the broader economic relationship between the two nations. This shift, combined with major Emirati investments in US industries, underscores the UAE’s strategic role as both an investor and a supplier in key sectors of the American economy.

In 2023, the UAE’s top merchandise exports to the US were led by precious metals and stones (US$3.04 billion), followed by printed materials (US$2.33 billion) and aluminium products (US$1.78 billion). Electrical machinery and aerospace components also featured prominently, highlighting the UAE’s role as a supplier of raw materials and industrial goods to the US.

On the import side, the UAE primarily sourced high-value industrial goods from the US, including machinery and mechanical appliances (US$7.52 billion) and vehicles (US$4.97 billion). Other key imports included precious metals, aerospace components, and electrical equipment, reinforcing the UAE’s reliance on advanced American technology and manufacturing.

Bilateral investment

The UAE and the US maintain a long-standing trade and investment relationship, with the UAE consistently ranking as the largest export market for US goods in the Middle East. In 2024, bilateral trade reached US$34.4 billion, with the US enjoying a US$19.5 billion trade surplus, underscoring the depth of economic integration between the two countries. Beyond trade, strategic investments in energy, technology, and infrastructure have strengthened ties, positioning the UAE as a key investor in US markets.

Strategic energy and technology investments

Energy cooperation remains a pillar of UAE-US economic relations, extending beyond oil and gas to include clean energy and infrastructure investments. The UAE has been a major investor in US energy projects, with initiatives such as the US$25 billion ADQ-ECP energy partnership, alongside key ventures including:

• ADNOC’s investment in US natural gas, particularly in NextDecade’s LNG export facility in Texas; and
• Masdar’s US$15 billion clean energy initiative, aligning with the UAE’s goal of achieving 50 percent renewable energy by 2050.

The Partnership for Accelerating Clean Energy (PACE), launched jointly by the UAE and the US, further highlights their commitment to carbon reduction, renewable energy deployment, and sustainable infrastructure development.

Beyond energy, the UAE has also emerged as a significant investor in US technology sectors, particularly in artificial intelligence, fintech, and advanced manufacturing. Abu Dhabi-based Mubadala Investment Company has played a key role in backing US tech firms, investing in semiconductor manufacturing, life sciences, and AI-driven enterprises. The UAE’s sovereign wealth funds, including ADIA and ADQ, have similarly expanded their US tech and infrastructure portfolios, supporting innovation-driven industries that align with the UAE’s economic diversification strategy.

Facilitating bilateral investment growth

To further attract US investors, the UAE has enacted key regulatory reforms, including its Corporate Tax Law and updated Commercial Companies Law, which now allows 100 percent foreign ownership in key sectors. Additionally, Dubai’s Invest in Dubai platform and Abu Dhabi’s discounted land program for manufacturing have streamlined business entry and incentivized foreign direct investment.

With FDI-friendly policies, strong energy partnerships, and a growing footprint in US technology, the UAE continues to strengthen its position as a key gateway for US businesses looking to expand across the Middle East and beyond.

Recent diplomatic engagements and policy shifts

Recent high-level diplomatic engagements have reinforced economic ties. In March 2025, UAE National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan met with US President Donald Trump, leading to the announcement of the US$1.4 trillion investment framework.

This follows Sheikh Mohamed bin Zayed Al Nahyan’s January 2025 meeting with Trump, where discussions focused on economic cooperation and regional stability. Earlier, in September 2024, he met then-President Joe Biden to explore collaborations in AI, space, and infrastructure.

The UAE’s increasing economic engagement with the US comes at a time when Gulf states, including Saudi Arabia, are taking a more prominent role in global investment and foreign policy. With Washington actively seeking Gulf capital for infrastructure and energy projects, the UAE’s expanding investment footprint aligns with its long-term strategy of economic diversification beyond oil.

Looking ahead

The UAE’s evolving economic relationship with the US reflects a broader shift toward strategic, high-value investments that support mutual growth. The increasing focus on AI, clean energy, and industrial infrastructure signals a departure from traditional oil-driven economic engagement, positioning the UAE as a key global investor in critical industries.

As the two nations deepen their economic and diplomatic ties, the UAE’s role in shaping global markets-particularly in energy and technology-will likely continue to expand, reinforcing its position as a pivotal player in international economic diplomacy.

• Previous Article Saudi Arabia Releases Draft Real Estate Transaction Tax (RETT) Regulations
• Next Article 2025年阿联酋企业税登记截止日期与合规要求分析