US-UAE Trade Boosted by New ADIO and EXIM Agreement

The bilateral trade between the UAE and United States hit $23.03 billion in 2021. This achievement marks a major milestone in the economic partnership between both nations. The US-UAE relationship continues to grow through strategic collaborations across multiple sectors.

ADIO and EXIM have signed an MoU to strengthen US-UAE trade in key sectors. The new framework will improve economic cooperation between both countries. This landmark agreement will help increase investment flows and create new business opportunities while promoting environmentally responsible economic growth. The memorandum of understanding takes an important step forward to deepen the bilateral trade relationship and promote long-term economic collaboration between these strategic partners.

Strategic Partnership Overview

The strategic partnership between the UAE and United States has grown into a strong economic alliance. The UAE remains the US’ largest export market in the Middle East region since 2009. Bilateral trade has doubled from AED 47.74 billion in 2010 to AED 95.47 billion in 2016.

This partnership thrives in a variety of sectors, with key focus areas including:

• Transportation equipment and aviation
• Healthcare and medical technologies
• Infrastructure development
• Advanced technologies and AI
• Renewable energy solutions

The economic ties have created jobs for 80,000 Americans in sectors of all sizes. The US recorded a trade surplus of AED 51.41 billion with the UAE in 2022. These numbers demonstrate how both countries benefit from their partnership.

UAE’s investments in the US have reached AED 139.53 billion by 2022. American jobs in advanced industries like aviation and semiconductors get a boost from these investments. More than 1,500 US companies now operate in the UAE. These companies work in heavy construction, energy, and retail sectors.

Defense cooperation is a vital part of this relationship. The UAE ranks among the largest Foreign Military Sales customers of the US. In the last decade, UAE invested more than AED 73.44 billion in US defense hardware and services. This detailed economic relationship keeps growing as both nations share interests in regional security and economic growth.

Investment Framework Development

ADIO and EXIM are creating complete credit facilities and guarantees to improve trade relations between the UAE and United States under the new framework. EXIM’s Credit Guarantee Facilities (CGFs) will provide credit lines between funding banks and foreign obligors, while EXIM guarantees the repayment of foreign debt obligations.

The investment framework prioritizes these key sectors:

• Renewable energy solutions and green hydrogen
• Critical minerals supply chains
• Biotechnology and AI development
• Semiconductors and quantum computing
• Infrastructure and telecommunications

The framework’s most important aspect has dedicated support for small and medium-sized enterprises (SMEs) and women-owned businesses. Local and foreign investors can access complete trade financing services through this collaboration, and most local and international banks offer specialized services to SMEs.

Both nations share knowledge and build capacity through established mechanisms in the framework. Businesses from both countries can access best practices and boost their competitiveness in global markets. EXIM’s financial products have export credit insurance, working capital guarantees, loan guarantees, and direct loans that support U.S. exporters.

Companies can optimize their working capital management and secure funds to purchase goods and stock through trade financing under this framework. UAE and U.S. businesses experience higher trade volumes and stronger supply chain relationships as a result. The partnership makes environmental, social, and governance (ESG) decisions a priority in investments, which arranges with both nations’ sustainability goals.

Economic Growth Initiatives

Trade relations between the UAE and United States show remarkable growth according to recent economic data. The bilateral trade volume reached AED 115.30 billion in 2023. US exports to the UAE rose by 19% from the previous year to AED 91.06 billion. This dynamic economic partnership creates jobs for approximately 166,000 Americans through trade activities.

UAE’s investments in the United States have reached new heights, with total investments now exceeding AED 3.67 trillion. The partnership focuses on several growth areas:

• Healthcare and life sciences
• Financial services and private equity
• Technology and artificial intelligence
• Renewable energy and sustainability
• Defense and space sectors

The UAE has successfully diversified its economy, with non-oil sectors now generating more than 70% of the UAE’s GDP. This economic transformation has made the UAE a strategic hub that serves over 1,500 American companies doing business across the Middle East, Africa, Europe, and Asia.

The technological bonds between both nations strengthened when Microsoft made a AED 5.51 billion strategic investment in G42, the UAE’s artificial intelligence technology holding company. The aviation sector saw similar growth when Emirates signed an agreement with Boeing for 90 aircraft worth AED 32.31 billion.

Business-friendly policies and strategic location make the UAE an attractive destination for foreign direct investment. The country’s eco-friendly initiatives shine through Masdar’s investments of nearly AED 3.67 billion in US green energy projects.

The UAE and United States partnership is proof of their steadfast dedication to economic growth and shared prosperity. Their trade has reached an impressive AED 115.30 billion. Through mutually beneficial alliances in technology, aviation, and renewable energy sectors, both nations have built strong economic ties. The ADIO-EXIM framework will create new opportunities for businesses, especially when you have SMEs and key sectors like renewable energy, biotechnology, and infrastructure development.

UAE has invested more than AED 3.67 trillion in US markets. Major deals highlight this partnership’s strength. Emirates signed an AED 32.31 billion agreement with Boeing, while Microsoft invested AED 5.51 billion in G42. These collaborative efforts have created over 166,000 American jobs and continue to promote breakthroughs and environmentally responsible development in both countries.

Both nations are ready for continued growth, technological progress, and leadership in global markets. Their focus on sustainable growth and strategic investments in emerging sectors creates a reliable foundation. This partnership paves the way for future economic cooperation and shared success.