UAE pledges $1.4 trillion investment in the US, says the White House

Post by: Elena Malik

Photo : Reuters

The United Arab Emirates (UAE) has announced a massive $1.4 trillion investment plan in the United States over the next 10 years, according to a statement from the White House on Friday. The commitment was made following a meeting between senior UAE officials and President Donald Trump earlier this week.

The investment framework aims to significantly increase the UAE’s current investments in the US economy. The funds will be directed towards key sectors, including AI infrastructure, semiconductors, energy, and manufacturing. However, the White House did not provide a detailed breakdown of how the UAE plans to reach the $1.4 trillion mark. It also noted that some of the deals announced as part of this framework had already been made public previously.

One of the new agreements revealed by the White House is a deal with Emirates Global Aluminium (EGA). The company plans to build the first new aluminum smelter in the US in 35 years. According to the White House, this plant will nearly double the country’s domestic aluminum production, marking a major boost to the US manufacturing sector. A spokesperson for EGA confirmed that building a primary aluminum smelter in the US had been part of the company’s long-term ambitions.

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The UAE, a major oil producer and a longstanding security partner of the US, is now focusing on strengthening its investment ties with Washington. The country is also positioning itself as a global leader in AI as part of its strategy to diversify its economy beyond oil and energy.

In September, UAE President Sheikh Mohamed bin Zayed Al Nahyan met with former US President Joe Biden at the White House. This marked the first-ever visit by a UAE president to the White House. During the meeting, the two leaders discussed expanding cooperation in AI, investments, and space exploration, highlighting their shared interest in technological advancement.

The Gulf region’s sovereign wealth funds, including Abu Dhabi’s Mubadala, which manages approximately $330 billion, are already major investors in the US. Additionally, Trump and his family have long-standing business ties to the Gulf region, further strengthening the economic relationship.

The new UAE investment framework was finalized after Trump held a meeting with Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s National Security Adviser, in the Oval Office. Following the meeting, US Vice President JD Vance and several cabinet members hosted a dinner with the UAE delegation, which included the heads of major sovereign wealth funds and corporations.

Among the key partnerships announced was a deal between ADQ, a UAE sovereign wealth fund chaired by Sheikh Tahnoon, and US private equity firm Energy Capital Partners. The partnership will involve a $25 billion initiative focused on energy infrastructure and data centers in the US. However, this deal had already been announced two days before the White House statement.

Another significant commitment is from XRG, the international investment arm of ADNOC (the UAE’s state oil company). XRG plans to invest in US natural gas production and exports. This includes supporting the NextDecade liquefied natural gas export facility in Texas. However, this investment had also been previously announced last year during President Biden’s administration.

The UAE’s $1.4 trillion investment framework is part of its broader strategy to expand its influence and strengthen economic ties with the US. The deal also comes as Saudi Arabia, the largest economy in the Arab world, is increasing its involvement in US foreign policy.

Saudi Arabia is set to host diplomatic talks involving both the US and Russia next week to discuss the Ukraine conflict, highlighting the Gulf region’s growing role in global diplomacy.

The UAE’s massive investment plan is expected to boost US economic growth, create jobs, and strengthen the partnership between the two nations. It also reflects the UAE’s commitment to becoming a leader in technology and innovation, while expanding its global presence in the AI and energy sectors.

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