The UAE has committed to a 10-year, $1.4 trillion investment framework in the U.S., said the White House in a statement. This announcement comes following the visit of Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and UAE National Security Adviser, to the U.S.
The framework will “substantially increase the UAE’s existing investments in the U.S. economy in AI infrastructure, semiconductors, energy, and American manufacturing”, the White House added.
Investments in key sectors
The statement did not outline how the exact amount will be invested. However, some deals between the UAE and the U.S. were already announced this week, including:
NVIDIA and xAI join the AI Infrastructure Partnership
Abu Dhabi–based MGX, BlackRock, Microsoft, and Global Infrastructure Partners (GIP) welcomed NVIDIA and xAI to the AI Infrastructure Partnership (AIP).
The AI Infrastructure Partnership has attracted significant capital and partner interest since its inception in September 2024, highlighting the growing demand for AI-ready data centers and power solutions. The partnership will initially seek to unlock $30 billion in capital from investors, asset owners and corporations, which in turn will mobilize up to $100 billion in total investment potential when including debt financing.
The AI Infrastructure Partnership’s investments will primarily focus on the U.S. as well as OECD and U.S. partner countries, driving AI innovation, economic expansion, and the advancement of critical digital and energy infrastructure.
$25 billion to power U.S. data center
ADQ, an Abu Dhabi-based sovereign investor, announced that it is investing over $25 billion to supply power to data centers in the U.S. in partnership with U.S. private equity firm Energy Capital Partners (ECP).
ADQ and ECP entered into an agreement to establish a 50-50 partnership in new build power generation and energy infrastructure. Their partnership aims to “service the growing power needs of data centers, hyperscale cloud companies and other energy-intensive industries,” said ADQ.
The partnership’s primary geographic focus will be the U.S., where the partners plan to make total capital investments of more than $25 billion across 25 GW worth of projects. The combined initial capital contribution from the partners is expected to amount to $5 billion. A portion of the capital may also be allocated towards opportunities in other international markets.
XRG to invest in Next Decade LNG export facility
XRG, owned by the UAE’s ADNOC, announced its commitment to support U.S. natural gas production and exports with an investment in the Next Decade LNG export facility in Texas. They also have additional plans to make substantial investments in U.S. assets across gas, chemicals, energy infrastructure and low-carbon solutions.
$1.2 billion mining partnership
ADQ and Orion Resource Partners have agreed to a $1.2 billion mining partnership to secure supplies of critical minerals. The partnership will establish a new Abu Dhabi-based 50-50 joint venture that will make strategic investments in the metals and mining sector to enhance supply chain security in the UAE and globally.
The joint venture partners will initially invest $1.2 billion over the course of the first four years. Based in ADGM, Orion Abu Dhabi will invest in mining companies using various financial approaches, including buying shares, providing loans and securing deals tied to production, such as royalties, revenue shares and purchase agreements.
Emirates Global Aluminum to invest in first new U.S. aluminum smelter
The statement also revealed that Emirates Global Aluminum plans to invest in the first new aluminum smelter in the U.S. in 35 years, which would nearly double U.S. domestic aluminum production.
Read: ADQ, Energy Capital Partners to invest $25 billion in powering U.S. data center
UAE-U.S. ties grow
In September, UAE President Sheikh Mohamed bin Zayed Al Nahyan met former U.S. President Joe Biden, in the first visit of a UAE president to the White House. During the visit, the two leaders discussed deepening cooperation in areas such as AI, investments and space exploration.
The latest official visit by Sheikh Tahnoon bin Zayed Al Nahyan to the United States marked a step forward in strengthening those ties. During the visit, Sheikh Tahnoon met with a number of U.S. officials at the White House. The meetings focused on advancing economic and technological ties between the two countries. Discussions also covered ongoing regional challenges and strengthening the decades-long U.S.-UAE strategic partnership.
The UAE is one of the U.S.’s key regional and global partners. The two countries maintain strong economic and investment ties. Their bilateral trade volume (excluding oil) reached close to $40 billion, with merchandise trade rising by 9.47 percent to $34.43 billion in 2024, compared to $31.45 billion in 2023, according to the latest data from the U.S. Department of Commerce.
Gulf sovereign wealth funds are already big U.S. investors. In addition, Trump and his family have strong business ties to the region. In January, Trump asked Saudi Arabia to spend $1 trillion in the U.S. economy over four years and said this month that he would likely make his first trip abroad to the Gulf country to seal an investment agreement.
