Published
October 01, 2024
Last week, U.S. President Joe Biden welcomed His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates (U.A.E.), to Washington, D.C., for the first-ever official visit by a President of the U.A.E, for a discussion about the future of our strategic bilateral relationship.
Why is the U.A.E. important?
The United Arab Emirates has been the largest market in the Middle East and North Africa for American exports since 2009. In 2023, bilateral trade between the U.A.E. and the United States totaled $31.4 billion. The U.A.E. has also made major strides to diversify its economy with the contribution of non-oil sectors to the country’s GDP reaching 74.3% in 2023.
Behind the impressive numbers lies a story of the U.A.E.'s policy reforms to position itself as an investment destination and innovation hub. New regulations permit 100% foreign ownership in many sectors, nearly 50 free zones offer business-friendly legal systems, and the U.A.E. has proactively established trade agreements with India, Indonesia, Turkey, and others, while preparing for more.
Takeaways from Oval Office Meeting
This historic Oval Office meeting between the two heads of state highlights the intertwined future of our security and economic prosperity. The Joint Statement outlines a collaborative path forward, emphasizing key areas in our shared future.
The U.S. business community has a considerable role to play to deliver on the economic and technological ambitions outlined by our government leaders. In fact, there is notable alignment with key sectors where we are already working to marry American innovation and solutions with projects, initiatives, and commercial opportunities in the U.A.E.
Three areas highlighted by Presidents Biden and Al Nahyan—AI and Digital Transformation; Energy Transition and Sustainability; and Space—are three areas the Chamber will continue to work closely with our government partners as integral to our shared economic objectives.
U.S. Business Partners with U.A.E. to Drive Climate Solutions
As the U.A.E. hosted COP28 and embraced the vital role of the private sector to accomplish the goals set by governments around the globe, the U.S. Chamber led the largest-ever U.S. business delegation to Dubai for COP last year.
U.S. Chamber President and CEO Suzanne Clark conveyed, “Long term success will require both private sector solutions and smart, balanced policies that encourage further investment and foster innovation. COP28 provides a critical opportunity to advance practical, effective solutions.”
She’s right. While the COPs are important milestones, we must sustain our engagements to enable progress and bring new entrepreneurs and businesses to the table. Building on the momentum of COP28 and the U.A.E Consensus, the U.S. Chamber brought our 3rd GreenTech Business Delegation to the U.A.E. earlier this month to demonstrate our continued commitment to this pillar of our bilateral relationship. Through Masdar and other investments and initiatives, the U.A.E. has long been a leader in advancing clean energy and a lower carbon future.
AI Collaboration: Government + Business
As part of the Presidential visit to Washington, our governments reaffirmed their commitment to “advance safe, secure, and trustworthy artificial intelligence (AI)” and issued a joint statement of common principles for cooperation.
Central to the cooperation are efforts such as promoting international norms, best practices, and the interoperability in AI governance; aligning regulatory frameworks for AI to enable cross-border innovation; embracing an interoperable, secure and reliable cybersecurity environment; facilitating bilateral investment to develop robust and secure AI infrastructure; and developing human talent through exchange programs and workshops.
This dialogue between government and business leaders was on full display as the U.S. Chamber hosted H.E. Omar Sultan Al Olama, U.A.E. Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications in New York City on the same day our Presidents were meeting in Washington. Minister Al Olama spoke about the U.A.E.’s digital transformation, the importance of having a long-term outlook, and embrace of reforms to position the nation as a global innovation hub. We encouraged these leaders to include business community in this journey to shape policy and regulations that will ultimately enable the investment and innovation necessary. Our bilateral relationship is filled with successful investments and collaborations between U.A.E. and U.S. technology leaders, proving the U.A.E.'s approach is effective.
Space: The Next Frontier in U.S.-U.A.E. Economic Collaboration
I initially considered a play on "the final frontier," but "the next frontier" isn't accurate since U.S.- U.A.E. space collaboration is well underway. The Joint Statement highlights many of the existing bilateral cooperations in space, such as the first Arab probe to Mars, the Hope Probe, in 2021.
At the U.S. Chamber, we are enthusiastic about the global space industry opening new markets and transforming economies. Valued at nearly $450 billion and growing, the space industry is driving technological advancement that is impacting many other industries, like energy, life sciences, and telecommunications.
To catalyze more U.S. commercial engagement in the U.A.E.’s space industry, the U.S. Chamber will organize and lead our first-ever Space Business Delegation to the U.A.E. in December to coincide with the Abu Dhabi Space Debate. We look forward to bringing entrepreneurs, innovators, investors, and industry heavyweights to explore opportunities with the Mohammed Bin Rashid Space Centre, U.A.E. Space Agency, Space42, and others in the U.A.E.’s fast-growing space sector.
About the authors
Steve Lutes
Steve Lutes is executive director Middle East Affairs at the U.S. Chamber of Commerce. He is responsible for managing the U.S.-Egypt Business Council, U.S.-Iraq Business Initiative, the U.S.-GCC Business Initiative, and serves as executive director for each.
