The UAE will invest USD 1.4 tn in the US through a 10-year investment framework, following discussions between US President Trump and a UAE delegation, led by Deputy Abu Dhabi Ruler and National Security Advisor Sheikh Tahnoon bin Zayed Al Nahyan, the White House said on X. The framework will significantly expand the UAE’s investments in key US sectors, including AI infrastructure, semiconductors, energy, and manufacturing. It will also facilitate multiple partnerships between American and Emirati companies to capitalize on opportunities in these sectors.

The statement cited a mix of old and new partnership agreements between US and UAE companies, without clarifying further details about how investments will reach USD 1.4 tn.

So, what’s new? Emirates Global Aluminum will develop the US’ first new aluminum smelter in 35 years, nearly doubling the US’s domestic aluminum production. The company has been planning to establish a primary aluminum smelter in the US for the past few years, Reuters reports, citing a company statement. It is also eyeing several US acquisitions following its acquisition of 80% of Minnesota’s Spectro Alloys in August 2024.

Bypassing tariffs: EGA’s acquisition of Spectro Alloys and future US-based takeovers will provide the firm with tariff-free access to aluminum as US metal prices rise, CEO Abdulnasser Bin Kalban said earlier. The US imposed a 25% tariff on aluminum and steel imports earlier in March.

Other key partnerships under the framework:

  • Abu Dhabi sovereign wealth fund ADQ partnered with US investment firm Energy Capital Partners to invest USD 25 bn in powering data centers.
  • ADQ and Orion Resource formed a JV to invest USD 1.2 bn in metals and mining over the next four years.
  • Elon Musk’s xAI and Nvidia joined BlackRock, Microsoft, and MGX in the USD 100 bn AI Infrastructure Partnership to invest in data centers and energy projects.
  • Elon Musk’s xAI and chipmaker Nvidia joined BlackRock, Microsoft, and MGX’s USD 30 bn AI Infrastructure Partnership.

AI investments remain a top priority: The UAE has been impacted by US export restrictions on AI chips and GPUs, which also apply to 120 other countries. Al Nahyan had reportedly been planning to lobby for easier access to advanced chips, including those from Nvidia, during his Washington visit. However, it remains unclear whether the new investment agreement will grant the UAE access to the technology.

Adnoc’s also playing a big role: Adnoc is looking to snap up US natural gas-producing fields to secure fuel for its chemical plants and LNG export facilities. Its investment arm, XRG, will invest in the NextDecade LNG export facility in Texas after acquiring an 11.7% stake in the project’s first phase. XRG also plans to expand its presence in the US gas supply chain, alongside investments in chemicals, energy infrastructure, and low-carbon solutions.

Other UAE entities are ramping up their US presence:

  • Dubai-based Damac Properties committed USD 20 bn to US data centers and launched its first real estate project in the country.
  • An Abu Dhabi investment Authority (Adia) unit and private equity firm Advent International invested USD 3 bn in Texas-based investment firm Fisher Investments.
  • Adia has also invested USD 500 mn in US power infrastructure firm Alpha Generation.

The story also got ink on CNBC and Bloomberg.

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