UAE Doubles Down on $1.4 Trillion US Pledge, Faults EU on Trade

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUAE Doubles Down on $1.4 Trillion US Pledge, Faults EU on TradeThe United Arab Emirates says it’s ahead of schedule with a plan to invest $1.4 trillion in the US over the next 10 years, and criticized the European Union for stalling trade talks.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.i9roe2iawrz90lz8p851ifvc_media_dl_1.png Bloomberg(Bloomberg) — The United Arab Emirates says it’s ahead of schedule with a plan to invest $1.4 trillion in the US over the next 10 years, and criticized the European Union for stalling trade talks.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“Things are progressing very well,” Minister of Foreign Trade Thani Al Zeyoudi said in an interview this week, referring to a spending pledge made when President Donald Trump visited the UAE in May of last year. “It was ten years — I think we’re going to do it much quicker.”The comments signal the Gulf Arab state’s commitment to the world’s biggest economy and to investing abroad via its huge sovereign wealth funds, even after the US and Israel attacked Iran in late February and triggered a war that’s roiled the Middle East.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe UAE had to fend off thousands of missiles and drones from the Islamic Republic at the height of the conflict. Hostilities have picked up again the past two weeks, exasperating Gulf Arab states.Al Zeyoudi said reaching the investment target would be helped by the Trump government’s move to ease export restrictions on the UAE. The announcement this month clears the way for Abu Dhabi to buy the most sophisticated AI chips made by American companies such as Nvidia Corp. and Advanced Micro Devices Inc.“It shows the real partnership between us and the current administration when it comes to transparency, trust and commitments regarding the supply-chain sensitivities,” the minister said in Dubai this week.He dismissed arguments from some national security hawks in Washington that exporting high-end semiconductors to the UAE will enable China to access such technology and slow the artificial-intelligence rollout in the US.“You cannot please everyone,” Al Zeyoudi said. “It’s as simple as that. We do understand the concern of those people and the concern of the government itself. But we’re fulfilling all the requirements.”The UAE will start importing such chips for its firms “very soon,” he said, adding they’ll be needed for a project known as Stargate, a data center cluster in Abu Dhabi emirate that’s meant to host the likes of OpenAI.He contrasted Washington’s openness to trade and business with the EU’s stance. The bloc has had roughly seven rounds of talks with the UAE about a Comprehensive Economic Partnership Agreement without a deal being struck. In the past few years, the UAE has signed almost 40 CEPAs, similar to free-trade deals, with countries across the world.“It’s not moving at the same pace as with others,” the minister said of negotiations with Brussels. “It’s because they’re still insisting on bringing to the table non-trade matters, which will not work with us.”The EU has been criticized by many governments, the US included, for bringing ESG and labor standards to the table during trade talks.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.“We still look at the EU as a partner,” Al Zeyoudi said. “But capital will not wait.”He expects plenty of other CEPAs to be announced soon, including with Canada this week. The Canadian deal could be one of the fastest such agreements the UAE has concluded, he said, taking less than 90 days.The talks come after the UAE said last year it would invest $50 billion in Canada, without giving a timeframe.“The relationship with the Canadian government is really good,” Al Zeyoudi said. “Projects we can invest in are under discussion.”A deal with Rwanda is “close,” while talks with Egypt and other African countries such as Ghana, Mozambique and Zambia are progressing. He hopes to conclude a CEPA with Brazil after its elections this year and also with Peru, Sri Lanka and Bangladesh.Al Zeyoudi cited CEPAs as a reason the UAE’s trade grew rapidly in the first half of the year. China and India contributed to the increase and he sees that continuing.The trade increase came despite the war and Iran’s effective closure of the Strait of Hormuz, normally the main conduit for the UAE’s petroleum supplies. The conflict forced the country to reduce exports of oil, liquefied natural gas and other commodities such as aluminum, while making imports through ports like Jebel Ali much more difficult.“The minute the attacks started this year, the whole agenda of the UAE focused on the supply chain, the continuity and availability of goods,” Al Zeyoudi said. “The growth in our trade sends a message that the UAE is very resilient.”The UAE shifted to using more air cargo and ramping up investments in its eastern ports, which sit outside the strait. The highly-ambitious and multi-billion dollar plan to reduce the UAE’s dependence on the chokepoint is dubbed “zero Hormuz.”Al Zeyoudi says it will go ahead even if Hormuz is reopened soon with free passage for ships, something Abu Dhabi is pushing for but which Tehran is resisting.On Tuesday, Dubai’s DP World, which runs Jebel Ali port, said it would develop two new deepwater terminals at Fujairah and Dibba. In addition, the UAE is building a second crude-oil pipeline to Fujairah that Al Zeyoudi says should be finished by early next year, enabling the government to send almost 4 million barrels a day — the vast bulk of its production — to the port city.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.