Home Science & Tech UAE, U.S. strengthen strategic partnership as trade reaches $39.5 billion in 2023

UAE, U.S. strengthen strategic partnership as trade reaches $39.5 billion in 2023

by ccadm


The UAE President’s visit marks a significant moment in over fifty years of bilateral relations between the two nations

The official visit of President Sheikh Mohamed bin Zayed Al Nahyan to the United States marks a pivotal moment in the enduring history of bilateral relations between the two nations, which commenced over fifty years ago.

Read more: UAE President Sheikh Mohamed to visit U.S. on Monday, further enhance bilateral ties

Strengthening strategic partnerships

This visit, WAM reported, highlights the strategic partnership between the two friendly countries, characterized by robust and stable connections from the very beginning. The UAE continues to be a vital ally of the United States, both regionally and globally.

Commitment to global dialogue

Furthermore, the visit reflects the UAE’s commitment to fostering partnerships, encouraging dialogue, and establishing effective, balanced relationships based on trust, credibility, and mutual respect with countries worldwide, all aimed at enhancing international stability, peace, and prosperity for all.

A multifaceted relationship

The UAE-U.S. relationship is fundamentally strategic, with both nations dedicated to ongoing collaboration that strengthens regional security, promotes economic growth, and addresses global challenges.

Areas of collaboration

Collaboration between the two countries spans various domains, including development, politics, security, economy, trade, and defense. Their numerous economic and security partnerships have been reinforced by the 2019 Abraham Accords.

Diplomatic foundations

Diplomatic relations between the UAE and the U.S. were established shortly after the UAE’s founding in 1971, with the UAE’s embassy in Washington opening in 1974, the same year the U.S. embassy in Abu Dhabi was inaugurated.

Economic ties on the rise

The strong economic ties between the two nations are reflected in the substantial rise in non-oil foreign trade (excluding services), which surged to $39.5 billion in 2023 from $23.8 billion in 2022.

Trade growth and investment

In 2023, UAE imports from the United States reached $25.9 billion, up from $21.3 billion in 2022. Meanwhile, UAE exports to the U.S. increased from $3.2 billion in 2022 to $3.9 billion in 2023. Additionally, UAE re-exports to the U.S. rose to $9.6 billion in 2023, compared to $8.2 billion the previous year.

Investment dynamics

Between 2018 and 2023, UAE investments in the U.S. totaled $3.7 billion, while U.S. investments in the UAE amounted to $9.5 billion. Key sectors for UAE investment in the U.S. include renewable energy, telecommunications, energy, real estate, software services, and information technology.

Advancements in technology and AI

This year, several collaborative agreements in technology and artificial intelligence have been formed. In June, World Wide Technology (WWT), a prominent U.S. technology integration firm, partnered with NXT Global to establish the UAE’s first AI Integration Centre in Masdar City, Abu Dhabi, which is set to be one of the most sustainable urban developments globally.

Continued investment in innovation

In April, Microsoft revealed a strategic investment of $1.5 billion in G42, further enhancing cooperation in artificial intelligence and technology.

Space exploration collaboration

The launch of the UAE’s Hope Probe in 2021 significantly strengthened scientific cooperation in space exploration between the UAE and the U.S.. This partnership was further demonstrated by the UAE’s recent mission to the asteroid belt in collaboration with the University of Colorado Boulder.

Contributions to lunar exploration

Additionally, the UAE is playing a crucial role in NASA’s Lunar Gateway project, where it will create a specialized airlock module for astronauts and scientists. The UAE also plans to send its first astronaut to lunar orbit, as announced in June, with the airlock module expected to launch by 2030.

Climate action initiatives

Climate action stands as a vital pillar of the productive partnership between the two nations, exemplified by the Partnership for Accelerating Clean Energy (PACE), which aims to mobilize $100 billion to generate 100 gigawatts of renewable energy by 2035.

Promoting sustainable agriculture

Furthermore, the UAE is co-leading the Agriculture Innovation Mission for Climate (AIM for Climate) alongside the U.S., encompassing over 50 nations and 500 partners to promote sustainable agricultural practices. Masdar has also funded 11 clean energy initiatives in the U.S., including the Big Beau project located near Los Angeles.

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