In a significant policy shift, the United States has authorised the export of advanced American semiconductors to companies in Saudi Arabia and the United Arab Emirates, marking one of the most notable expansions of chip access in the Middle East. The decision reflects the Biden administration’s growing confidence in Gulf nations’ regulatory frameworks and their role in the global AI and semiconductor ecosystem.

Why the U.S. Made This Move Now

The authorisation comes at a time when Saudi Arabia and the UAE are rapidly scaling up investments in artificial intelligence, cloud infrastructure, and high-performance computing. Both countries have been aggressively pursuing technological leadership through multi-billion-dollar sovereign funds, global tech partnerships, and domestic AI initiatives.

Officials familiar with the decision noted that the U.S. views Gulf markets as strategic, stable partners, especially as Washington maintains strict chip export restrictions against China and other high-risk regions.

Boost for AI, Cloud, and Supercomputing Projects

Companies in both Saudi Arabia and the UAE are expected to leverage the newly approved chips to power large-scale AI models, cloud platforms, autonomous systems, and next-generation data centers. These advanced semiconductors will support initiatives such as:

• Saudi Arabia’s National Strategy for Data & AI (NSDAI)

• UAE’s AI 2031 vision

• Expanding supercomputing infrastructure in the Gulf

• Partnerships with global firms like Nvidia, Microsoft, and Amazon Web Services

Industry analysts say the move could accelerate the region’s transformation into a major AI hub.

Stringent Compliance Still Applies

Despite the approval, U.S. authorities have emphasized that exports will still be subject to end-use verification, strict licensing, and monitoring to ensure the chips are not transferred to restricted entities or diverted to countries under embargo.

A senior U.S. official clarified that the policy is designed to support trusted partners without compromising national security or global supply chain stability.

Middle East’s Rising Role in Global Tech Competition

With investments soaring into tens of billions of dollars, the Gulf’s technology ambitions are reshaping global alliances. Washington’s latest move is widely seen as both a strategic alignment and a recognition of the region’s rising influence in the AI race.