WASHINGTON (Dispatches) – The U.S. ignored internal warnings from Commerce Department staff before substantially easing restrictions on advanced technology exports to the UAE, POLITICO reported on Wednesday.
Internal reports and memos examined by the U.S. publication warned that expanding Emirati firms’ access to U.S. technology could increase the risk of it falling into Chinese hands, particularly highlighting the state-supported AI company G42 and its affiliates.
U.S. officials said the UAE is “the primary diversion point for sensitive U.S. technologies” in West Asia, pointing to long-running concerns over Abu Dhabi’s relationship with Beijing.
The warnings singled out G42’s earlier dependence on Huawei infrastructure, unsecured systems exposed to third-party access, and the company’s ties to executives with past links to Chinese technology firms.
Washington granted approval on July 10 for authorized Emirati entities to obtain license-free access to advanced AI chips, including Nvidia processors, alongside military equipment, satellite components, and civilian nuclear technologies – a status no other West Asian state holds, including Israel and Saudi Arabia.
The Commerce Department said the upgrade came “in recognition of the UAE’s ... support in advancing U.S. national security interests, including Operation Epic Fury,” pointing to Abu Dhabi’s role in the U.S.-Israeli terrorist war on Iran, during which it carried out dozens of airstrikes and allegedly intercepted Iranian missiles.
The UAE had joined Israel and the U.S. in striking Iranian energy infrastructure dozens of times in the opening days of the war on Iran in late February, ahead of any Iranian retaliation, according to a Wall Street Journal (WSJ) report.
The decision follows the U.S.–UAE AI Acceleration Partnership signed in May 2025 and an Emirati pledge to invest $1.4 trillion in the U.S. over the next decade.
Critics have also raised concerns about a potential conflict of interest, pointing to a $500 million investment in U.S. President Donald Trump’s crypto venture, World Liberty Financial, by a firm linked to UAE National Security Advisor Tahnoon bin Zayed shortly before Trump took office.
U.S. Senator Elizabeth Warren said the developments were “reeking of corruption,” asking whether sensitive U.S. technology was traded away over the objections of U.S. security officials.
The controversy has deepened with revelations that the deal unfolded alongside overlapping financial interests involving key figures. The $500 million investment, finalized just days before Trump’s January 2025 inauguration, gave Tahnoon-controlled entities a 49% stake in World Liberty Financial, with $187 million directed to Trump-linked entities. 
Two senior G42 executives joined the crypto firm’s board, while Steve Witkoff—Trump’s Middle East envoy and a World Liberty co-owner—reportedly advocated for the chip deal.