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Trump and UAE Cement $200 Billion Pact with AI and Aviation at the Forefront

Trump and UAE Cement $200 Billion Pact with AI and Aviation at the Forefront

Arabian Post16-05-2025

President Donald Trump has unveiled a series of agreements with the United Arab Emirates totalling over $200 billion, encompassing significant investments in aviation and artificial intelligence. The announcements followed Trump's meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, underscoring a deepening strategic partnership between the two nations.
Etihad Airways has committed $14.5 billion to acquire 28 wide-body Boeing aircraft, including 787 Dreamliners and 777X models, all powered by GE Aerospace engines. Deliveries are slated to commence in 2028, aligning with Etihad's broader fleet expansion plans. The airline aims to increase its fleet from 102 to approximately 150 aircraft by 2030, supporting Abu Dhabi's economic diversification objectives.
In a parallel development, the United States and the UAE have agreed to establish a 'US-UAE AI Acceleration Partnership.' Central to this initiative is the construction of a 5-gigawatt artificial intelligence campus in Abu Dhabi, poised to be the largest of its kind outside the United States. The facility, spearheaded by Emirati AI firm G42, will initially operate with 1GW of data center power, eventually expanding to 5GW, sufficient to support over 2 million next-generation Nvidia GB200 chips.
This collaboration marks a significant shift in U.S. export policy. The Trump administration has eased previous restrictions on advanced chip sales to the UAE, a move aimed at fostering deeper technological partnerships while ensuring that only U.S.-approved cloud providers can utilize the data center's computing power. The UAE has demonstrated its commitment to this partnership by distancing itself from Chinese suppliers and investing heavily in U.S. AI ventures.
Further solidifying bilateral ties, Sheikh Mohamed bin Zayed announced a landmark investment plan, committing $1.4 trillion to the United States over the next decade. This substantial financial commitment is expected to span various sectors, including artificial intelligence, technology, energy, and infrastructure, reflecting the UAE's strategic focus on innovation and future-oriented industries.
See also Luxury Apartments in Dubai - Where to Find High-End Living Spaces
The UAE's MGX Fund Management Limited, an AI-focused investment firm established in 2024, plays a pivotal role in this strategy. MGX has joined forces with BlackRock, Microsoft, and Global Infrastructure Partners to launch a $30 billion fund dedicated to investing in data centers and the energy required to power them. This initiative underscores the UAE's commitment to building the physical infrastructure necessary for AI development and deployment.

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