U.S. Commits $60 Billion to UAE Energy Projects Amid Expanding Bilateral Ties

Arabian Post Staff -Dubai

The United States has pledged a $60 billion investment in the United Arab Emirates’ energy sector, as part of a broader $440 billion joint initiative extending through 2035. This commitment was announced during President Donald Trump’s visit to the Gulf, underscoring a significant deepening of economic relations between the two nations.

Sultan al-Jaber, chief executive of the Abu Dhabi National Oil Company , detailed the investment plan, highlighting the collaborative efforts to advance energy infrastructure and innovation. The U.S. contribution focuses on enhancing the UAE’s energy capabilities, aligning with both countries’ strategic interests in energy security and technological advancement.

This energy investment is a component of over $200 billion in deals unveiled during President Trump’s visit. Notably, Etihad Airways announced a $14.5 billion agreement to purchase 28 Boeing aircraft, including Boeing 787 and next-generation 777X models, equipped with GE engines. Deliveries are scheduled to commence in 2028, supporting U.S. manufacturing and exports while facilitating Etihad’s fleet expansion plans.

In a significant move to bolster bilateral economic ties, the UAE has committed to a 10-year, $1.4 trillion investment framework in the United States. This framework aims to substantially increase the UAE’s existing investments in the U.S. economy, focusing on sectors such as artificial intelligence infrastructure, semiconductors, energy, and manufacturing. The initiative reflects the UAE’s strategic focus on innovation and future-oriented industries, as well as its intent to strengthen economic ties with the U.S.

A key project under this framework is the development of one of the world’s largest AI data center complexes in Abu Dhabi. This initiative, led by Emirati AI firm G42, will span 10 square miles and initially operate with 1GW of data center power, eventually expanding to 5GW. The project aligns with the UAE’s ambition to diversify its oil-based economy and position itself as a global AI powerhouse.

The partnership also includes plans to build or fund equivalent data centers in the U.S., bolstering strategic and technological ties between the countries. The UAE’s investment in the U.S. AI sector is expected to channel hydrocarbon revenues into sectors with higher long-term yields, supporting America’s infrastructure development without taxpayer burdens.

The UAE’s investment strategy encompasses securing critical minerals essential for AI hardware and renewable energy systems. A $1.2 billion mining partnership with Orion Resource Partners targets lithium, cobalt, and rare earth metals, reducing supply chain vulnerabilities and supporting U.S. reindustrialization efforts.

Emirates Global Aluminum plans to build the first new aluminum smelter in the U.S. in 35 years, aiming to nearly double the country’s domestic production. This facility will bolster domestic production for the aerospace and electric vehicle sectors, addressing strategic weaknesses exposed during pandemic-era shortages.

The UAE’s investments also extend to the energy sector, with ADNOC’s XRG division set to invest in U.S. natural gas exports via Texas’ NextDecade LNG facility. This move aligns with the UAE’s energy transition goals while capitalizing on America’s shale boom.

Also published on Medium.

Notice an issue?