How the UAE is a Key Trade Partner of the United States

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The United Arab Emirates (UAE) has consistently ranked highest among Middle Eastern and North African (MENA) US export markets since 2009. Along with strong economic ties, this dynamic cooperation shows a shared commitment to innovation, sustainability, and growth spanning a broad range of sectors.

At $31.4 billion in bilateral trade between the United Arab Emirates and the United States broke through in 2023. Having supplied the UAE goods and services valued at more than $24.8 billion, the US showed a noteworthy 19% increase from year previous. With an incredible $18.3 billion trade surplus for the US, this trading activity ranks fourth globally for trade surplus among countries. Covering all 50 US states, this close economic relationship benefits 166,000 American jobs among other things.

Spending More in Strategic Areas

Long recognized as a top investment destination for US firms, particularly in industries including energy, aerospace, technology, and finance, UAE is where American companies have spent money on the fast growing UAE economy, therefore assisting the government to diversify outside of oil. From real estate to renewable energy, Emirati US investments of over $1 trillion have driven employment in a variety of sectors and economic growth from all angles. 

Among the most amazing initiatives of collaboration between the two nations is renewable energy. Leading worldwide in renewable energy, Masdar from the United Arab Emirates has launched multiple projects all throughout the United States, mostly in Texas, New Mexico, and California. These initiatives are part of a larger general worldwide movement aiming at promoting adoption of renewable energy. Complementing their mutual dedication to sustainability, the two nations became members of the Partnership for Accelerating Clean Energy (PACE), a structure designed to promote group investments and encouragement of renewable energy projects.

Cooperation Rising in Technology, Space, and Aviation

Relationship between US and UAE beyond just oil. Their cooperation also covers aviation since FlyDubai and Emirates Airlines have ordered big Boeing aircraft. At the Dubai Airshow in 2023, Emirates Airlines reportedly ordered shockingly $52 billion for Boeing aircraft; FlyDubai’s $11 billion purchase for 30 Boeing 789-9 Dreamliners highlights even more the relevance of this alliance. Apart from aircraft purchases, the alliance comprises industrial ties; Strata Manufacturing, a UAE-based firm, closely collaboratively produces necessary components for the 777 and 787 aircraft with Boeing. This cooperation now addresses the acquisition of composite materials for the newest 777X model, therefore highlighting the integration of two aerospace sectors.

Still another crucial area of collaboration is space exploration. Under UAE space collaborations with NASA and US-based companies like Maxar Technologies and Northrop Grumman, new horizons in space exploration and technology are being explored. These relationships determine both the development of space research and the creation of new commercial opportunities. One interesting project is the UAE’s crew and scientific airlock module for NASA’s lunar “Gateway” space station, where Emirati engineers will be involved. The UAE has also collaborated with Virgin Galactic to explore space tourism opportunities, therefore allowing perhaps suborbital space flights for UAE citizens.

Working on artificial intelligence (AI), cloud computing, and supercomputing, the UAE and US have been technologically forward. Emirati companies like G42 have joined with US IT behemoths like Microsoft Azure in order to increase AI capability and generate creative projects like the Condor Galaxy supercomputer. These initiatives are inspiring creativity in many fields and guiding both countries’ technical development.

Other Strategic Cooperatives and Medical Education

Healthcare is another vital area of cooperation between the two nations; cooperative projects and alliances drive advances in medical research, healthcare delivery, and technology innovations. Established in 2019 by US-based Mayo Clinic in a joint venture with Abu Dhabi Health Services Company, Sheikh Shakhbout Medical City is one of the most significant collaborations. This 741-bed facility provides excellent worldwide healthcare choices for its patients. In 2015 Cleveland Clinic opened Cleveland Clinic Abu Dhabi in partnership with Mubadala, strengthening the healthcare connectivity between the United Arab Emirates and the United States. Thanks to these partnerships, the UAE has become a Middle Eastern center for creative surgical and medical treatments.

Clearing Trade Challenges and Improving Economic Relations

Though the UAE and the US have extensive economic connections, many problems still remain largely related to aluminum imports. The UAE is a major source of aluminum for the US and a must for many different American companies. Taxes on imported aluminum, however, have upset supply chains and increased American company costs. By means of venues such as the Economic Policy Dialogue and the UAE-US Business Council, both nations are working together to address issues and find mutually beneficial solutions.

Apart from trade limits, UAE investments in the United States (CFIUS) cause problems because of more surveillance by this authority. Although this analysis forms the foundation of national security, it can complicate affairs for foreign investors. The two nations have to keep continuous cooperation in order to balance ensuring security with building an environment that supports economic progress and mutual investment.

Cooperation for the Future

The UAE’s economic relationship with the US is proof of the power of global cooperation. Through common investments, technical innovation, and a commitment to sustainability, the two nations continue to be driving broad-ranging economic growth and creativity in many sectors. As they handle the challenges offered by international commerce and investment, both the UAE and the US are positioned to lead the way in developing new technologies, promoting renewable energy, and raising possibilities for next generations. Rooted in mutual respect and similar goals, UAE-US cooperation is a brilliant example of global cooperation in a world getting ever more intertwined.

Tags: UAE
Noto

Jakarta-based Newswriter for The Asian Affairs. A budding newswriter that always keep track of the latest trends and news that are happening in my country Indonesia.

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