The relationship between the United States and the United Arab Emirates is facing new challenges as lawmakers, security officials and industry leaders weigh a range of issues involving defense cooperation, artificial intelligence, regional security and sanctions policy.
A new report from the Congressional Research Service outlines the growing importance of the partnership while also highlighting several areas of concern that could shape future relations between the two countries.
The report notes that the UAE remains one of Washington’s most important partners in the Middle East. The country hosts U.S. military forces and has been a major purchaser of American defense equipment for decades.
According to the report, the UAE has acquired more than $33.5 billion in Foreign Military Sales since 1950. It was also the largest U.S. trading partner by value in the Middle East and North Africa region in 2025, with total trade reaching about $39 billion.
The United States recorded a trade surplus of roughly $23 billion with the UAE, underscoring the strong economic links between the two nations.
Defense cooperation remains a central part of the partnership. However, recent regional tensions have exposed vulnerabilities in both military and economic infrastructure.
Iranian strikes reportedly damaged Al Dhafra Air Base, which is used by U.S. and French forces, and also affected the U.S. Consulate General in Dubai.
The report highlights concerns about the supply of high-purity aluminum, a critical material used in defense manufacturing. Nearly 90 percent of the aluminum used in certain U.S. defense systems, including fighter aircraft, comes from the UAE.
Emirates Global Aluminum, one of the key suppliers, is facing significant repair work at its main smelter. Full operations are not expected to resume until 2027, creating concerns about supply chain stability.
At the same time, debate continues in Washington over the UAE’s role in regional conflicts.
The report points to allegations from United Nations sanctions monitors that have linked the UAE to support for Sudan’s Rapid Support Forces. Those allegations have prompted legislative action in Congress.
Representative Sara Jacobs and Senator Chris Van Hollen have reintroduced legislation that would restrict arms export licenses to the UAE until the administration certifies that the country is not providing weapons to the Sudanese group.
Artificial intelligence cooperation is another major area of focus.
In January, the UAE joined Pax Silica, a multinational initiative designed to strengthen AI development and supply chain security. Later, U.S. officials upgraded the UAE’s export control status, a move that could simplify access to certain American AI chips and servers.
The change is seen as an important step for technology cooperation between the two countries.
However, recent regional conflict has complicated some of those ambitions.
The report states that an Amazon Web Services facility in Abu Dhabi connected to the planned Stargate UAE project suffered damage during Iranian attacks. The incident has raised concerns about the security of technology infrastructure in the region.
As a result, UAE officials are reportedly considering new approaches to data center protection, including distributing facilities across different locations and placing some infrastructure underground.
Sanctions policy has also become a significant issue.
In August, the UAE announced the suspension of trade activity, commercial exchanges and financial transactions with Iran. The move represented a major shift because the UAE had previously served as a key trade channel for Iranian imports.
The report describes the decision as particularly important given the scale of economic ties between the two neighboring countries. It also notes that the UAE has aligned itself with broader U.S. economic pressure efforts aimed at Iran.
Meanwhile, defense cooperation continues to expand.
Since February, approximately $8.6 billion in potential Foreign Military Sales has been reported to Congress. Proposed sales include advanced radar systems and air-to-air missiles designed to strengthen regional defense capabilities.
The report also notes that previous Emirati interest in advanced fighter aircraft could return following recent discussions involving potential aircraft sales elsewhere in the region.
The US UAE Strategic Partnership remains one of the most important relationships in the Middle East. While trade, defense and technology ties continue to deepen, lawmakers and policymakers are increasingly focused on regional conflicts, security risks and geopolitical challenges that could influence the future direction of the partnership.
