NVIDIA’s AI Chips Now Approved for Export to the UAE as Microsoft Expands Regional Investments
While NVIDIA’s ongoing export restrictions to China continue to affect its operations, a new and highly lucrative market is emerging in the Middle East. According to the Financial Times, the United States government has approved Microsoft’s request to export NVIDIA AI chips to the United Arab Emirates, marking a major shift in the global landscape for advanced semiconductor deployment.
Microsoft President Brad Smith confirmed the approval, noting that the company received its export license only after passing strict regulatory and security evaluations.
“You cannot get those export licences unless you’re able to meet the requirements that have been imposed by the US government. We earned it by satisfying very stringent cybersecurity, physical security, and other security requirements,” Smith told the Financial Times.
The decision represents a significant step toward expanding access to NVIDIA’s cutting-edge AI hardware in a region that is increasingly focused on artificial intelligence, digital infrastructure, and high-performance computing.
Following the approval, Microsoft plans to invest approximately $7.9 billion between 2026 and 2029 in the UAE to strengthen its cloud and AI capabilities. This move will not only enhance the country’s digital transformation efforts but also provide a new revenue channel for NVIDIA amid its reduced presence in China.
The Middle East has rapidly become one of the most strategic regions for American technology firms. Since former U.S. President Donald Trump’s visit to Gulf states, NVIDIA and other tech companies have signed multiple agreements with state-backed organizations, including G42 and HUMAIN AI. These partnerships align with the region’s ambitions to become a global leader in AI development and innovation.
NVIDIA has faced mounting restrictions from the U.S. government on selling its most advanced AI chips to China, which historically represented one of its largest markets. As a result, access to Gulf nations such as Saudi Arabia and the UAE could help offset the revenue gap left by these trade limitations.
The Trump administration had previously been reluctant to grant export licenses for high-performance AI chips to Middle Eastern nations due to security concerns. However, Microsoft’s compliance with all government-mandated safeguards appears to have opened the door for broader technology collaboration in the region.
Although it remains uncertain whether the Middle East could match China’s scale in terms of revenue potential, this development signals a major geopolitical and economic realignment in the global AI supply chain. For NVIDIA, the UAE may well become a cornerstone of its future international growth.
Do you think the Middle East could become NVIDIA’s next big market after China?
