Key Highlights

  • Two decades after a failed 2006 bid to acquire major US ports sparked backlash, the UAE has become one of America's most trusted Middle East allies
  • The UAE has spent more than $270 million on lobbying in Washington over the past decade, among the largest totals of any foreign government
  • Abu Dhabi manages $1.7 trillion in sovereign wealth, with entities including MGX and Mubadala making significant investments in US technology companies
  • US authorization of advanced chip sales to the UAE has drawn criticism from Democratic lawmakers over national security and conflict-of-interest concerns

From Ports Controversy to Trusted Military Partner

Twenty years after a UAE-owned company's failed bid to acquire six major American seaports triggered a political firestorm in Washington, the Gulf state has become one of the closest US allies in the Middle East, with the US military announcing in July it was working with the UAE on advanced military AI development. The 2006 ports controversy, driven partly by concerns tied to the nationality of some of the September 11 hijackers, forced the Emirati-owned company to abandon the deal despite backing from the administration at the time.

Following that setback, the UAE undertook a sustained, decades-long effort to reshape American perceptions of the country, dispatching a Georgetown-educated diplomat to Washington in 2008 to lead outreach to Congress, think tanks, universities, and the media. That campaign is widely described as one of the most effective foreign government Public Relations efforts in Washington in recent memory.

UAE Spends Heavily on Lobbying and Institutional Outreach

The UAE has spent more than $270 million on lobbying and influence efforts in Washington over the past decade, ranking among the top foreign spenders globally alongside fellow Gulf states Saudi Arabia and Qatar, according to tracking organization OpenSecrets. The country has also funded prominent Washington think tanks, hosted international conferences, and established a bilateral Business council, alongside sustained outreach to policymakers and congressional staff.

The UAE's decision to become the lead signatory of the 2020 Abraham Accords, normalizing relations with Israel, is widely viewed as one of its most consequential diplomatic achievements, significantly improving its standing across the American political establishment. More recently, the UAE has drawn closer to Israel and withdrew from OPEC in May, further strengthening its relationship with Washington.

Investment Ties Deepen Alongside Growing Scrutiny

Beyond diplomacy, Abu Dhabi has leveraged its roughly $1.7 trillion in sovereign Wealth and state-backed businesses to invest heavily in the US, including in American technology companies and, more recently, in ventures connected to the Trump family. Emirati-linked entities including MGX and Mubadala have taken stakes in major US tech firms, with MGX also striking partnerships with prominent AI labs and taking a stake in TikTok as part of a US-led consortium.

A recent decision by the US commerce department to authorize advanced chip sales to the UAE and remove related export controls marked a significant milestone, though it has drawn criticism from some Democratic lawmakers over potential conflicts of interest tied to Emirati investments in Trump-linked ventures, as well as broader national security risks associated with advanced technology transfers to a country with close trade ties to China.

Relationship Faces New Tests Amid Iran War and Congressional Scrutiny

The UAE's influence in Washington has helped it avoid sustained criticism faced by some regional peers over sensitive issues, including its role as a hub for Iranian financial activity and allegations regarding arms transfers in Sudan's conflict. Despite deep ties to Washington, the UAE could not prevent the US and Israel from launching their war against Iran this year, and has since faced direct Iranian retaliation. Some Democratic lawmakers say a shift in control of Congress after November's midterms could open the door to closer scrutiny of the relationship.