United Arab Emirates Commits to $1.4 Trillion U.S. Investment

6 days ago

KEY FACTS: The United Arab Emirates (UAE) has pledged $1.4 trillion in investments to the U.S. economy over the next decade, following a meeting on March 18, 2025, between President Donald Trump and UAE national security adviser Sheikh Tahnoon bin Zayed Al Nahyan. Announced by the White House on March 21, 2025, this deal, which is the largest foreign direct investment commitment in U.S. history, aims to bolster key sectors like AI infrastructure, semiconductors, energy, and manufacturing, with standout projects including a new aluminum smelter by Emirates Global Aluminium and a $25 billion energy and data center initiative by ADQ and Energy Capital Partners.

Tahnoon (left) meeting with Trump (right) in the Oval Office. Source: Donald Trump

United Arab Emirates Commits to $1.4 Trillion U.S. Investment

The White House revealed on Friday that the UAE has pledged a staggering $1.4 trillion investment in the U.S. economy over the next decade. This unprecedented commitment, one of American history's largest foreign direct investment pledges, follows a crucial meeting between President Donald Trump and a senior Emirati official. This points to a new chapter in bilateral relations between the United States and the United Arab Emirates (UAE), fueled by years of growing connections between the Trump administration and Emirati leadership.

The agreement, detailed in a White House statement, emerged from a high-profile meeting held on Tuesday last week in the Oval Office, where President Trump hosted Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a key figure in the Gulf nation’s economic strategy. The discussions, which extended into a dinner hosted by Vice President JD Vance and attended by several cabinet members, included representatives from major UAE sovereign wealth funds and corporations.

According to White House officials, the talks focused on bolstering economic cooperation, with the UAE committing to “substantially increase” its existing investments in critical U.S. sectors such as artificial intelligence (AI) infrastructure, semiconductors, energy, and manufacturing. The White House source emphasized the deal’s potential to transform industries vital to America’s technological and economic future, stating thus:

“This new framework will substantially increase the UAE’s existing investments in the U.S. economy,”

While the statement did not provide a detailed breakdown of how the $1.4 trillion figure will be achieved—noting that some components of the framework build on previously announced deals—it highlighted specific initiatives that underscore the UAE’s ambitious vision.

Among the standout projects is a planned investment by Emirates Global Aluminium, which intends to construct the first new aluminum smelter in the United States in over 35 years. The White House described this venture as a game-changer that “would nearly double U.S. production capacity” in the aluminum sector, revitalizing domestic manufacturing and creating jobs. Additionally, the UAE investment fund ADQ, in partnership with U.S.-based Energy Capital Partners, announced a $25 billion initiative targeting energy infrastructure and data centers, further cementing the UAE’s role in supporting America’s energy and tech ambitions.

The roots of this monumental deal trace back to relationships cultivated during Trump’s first term in office, particularly through the efforts of his son-in-law and former adviser, Jared Kushner. Kushner, who has maintained close ties with Emirati officials, played a significant role in fostering these connections. His private equity firm, Affinity Partners received over $200 million from Emirati wealth funds, according to reports from The New York Times. Despite scrutiny over potential conflicts of interest, Kushner has defended these investments, asserting in a December 2024 podcast that he was “very clear” with Emirati investors in 2021 that they should not expect preferential treatment if Trump were reelected.

The UAE’s commitment builds on earlier announcements, including a January pledge by Emirati billionaire Hussain Sajwani to invest $20 billion in U.S. data center. Sajwani, a prominent figure during Trump’s first term, has long-standing ties to the Trump family. His firm, Damac, developed a Trump-branded golf course in Dubai, which opened in February 2017 amid controversy over Trump’s international business dealings as president. At the opening, Donald Trump Jr. praised Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum, while Eric Trump hailed Sajwani as a “great friend,” reflecting the personal and professional bonds that have underpinned this economic partnership.

The $1.4 trillion pledge aligns with Trump’s strategy of leveraging foreign investment to bolster the U.S. economy, a tactic he has employed with other Gulf nations as well. In January, Trump reportedly pressed Saudi Arabia to invest upwards of $1 trillion over four years, including in military equipment and hinted at making his first overseas trip of this term to Riyadh to finalize a similar deal.

Analysts see the UAE investment as a strategic move by the oil-rich nation to diversify its economy and position itself as a global leader in technology and innovation. The focus on AI infrastructure and semiconductors reflects the UAE’s ambition to become a regional hub for artificial intelligence, a goal that could be advanced through access to cutting-edge U.S. technology. While it remains unclear whether this deal includes provisions for the UAE to acquire advanced chips currently under export restrictions—such as those produced by Nvidia—Emirati officials have expressed a keen interest in deepening technological collaboration with the United States.

The White House hailed the agreement as a triumph of economic diplomacy, with an anonymous official saying that it would “substantially increase” the UAE’s footprint in the U.S. economy.

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