The deal, which was finalised yesterday during Trump’s visit to Abu Dhabi, is a major win for the UAE, which has been trying to balance its relations with its longtime ally, the US, and its largest trading partner, China.

It reflects the Trump administration’s confidence that the chips can be managed securely, in part by requiring data centres to be managed by US companies.

“We’re making great progress for the US$1.4 (trillion) that the UAE has announced it intends to spend in the US,” Trump said, speaking during the last stop of a multi-day tour of Gulf states that included stops in Saudi Arabia and Qatar.

“Yesterday, the two countries also agreed to create a path for the UAE to buy some of the world’s most advanced AI semiconductors from American companies, a very big contract,” he said.

“This will generate billions and billions of dollars in business and accelerate the UAE’s plans to become a really major player in AI,” Trump added.

The UAE in March committed to a 10-year, US$1.4 trillion investment framework in the US in sectors including energy, AI and manufacturing.