UAE AI Chip Access Deadline and Regional Security Risks Challenge Tech Buildout

According to EnterpriseAM, the UAE holds the broadest access to advanced US artificial intelligence chips in the Gulf under a rule published by Washington in July. The regulation permits UAE AI compute firms G42 and Core42 to purchase advanced US chips without an export license until April 6, 2027, unless the US Bureau of Industry and Security (BIS) orders otherwise.

If the two companies do not become US entities by that deadline, they will be required to apply through BIS's advisory-opinion process. June Park, a political economist at Singapore Management University, told EnterpriseAM that the US rule does not define what becoming a US company entails, leaving unresolved whether G42 and Core42 must relocate headquarters to the US, establish a US parent entity, or alter shareholding structures.

Gulf AI infrastructure remains heavily reliant on licensed American hardware and software from companies including Microsoft, OpenAI, and Oracle. While Mohammed Soliman of the Middle East Institute noted the region is moving toward AI sovereignty, the buildout faces physical protection challenges. Two Amazon Web Services (AWS) facilities in the UAE were struck in March, damaging two data center zones, and AWS reported in September that it could not recover access to data and resources stored exclusively in one affected UAE zone.

Despite security concerns, Middle East data center capacity—presently around 1 gigawatt—is projected to triple, with 2.2 GW under construction and 12 GW in planning, according to JLL data cited by Forbes. Physical security measures such as barriers and gatehouses cost USD 5 million to USD 20 million, with advanced defenses taking up to 5% of construction budgets. Both the UAE and Saudi Arabia are currently preparing to classify information and communications technology as critical infrastructure.