On July 10, 2026, the US Department of Commerce’s Bureau of Industry and Security (“BIS”) issued a final rule (the “Final Rule”), providing enhanced favorable treatment to the United Arab Emirates (“UAE”) under the Export Administration Regulations (“EAR”). BIS indicates the change is a recognition of the UAE’s status as a US Major Defense Partner, its key role in advancing US national security interests including during Operation Epic Fury, its commitment to implementing effective export controls to protect sensitive technology, and the close commercial ties between the United States and the UAE. In particular, the Final Rule removes the UAE from Country Groups D:3 (Chemical & Biological) and D:4 (Missile Technology) and adds the UAE to Country Group A:5, effectively expanding the license exceptions available for exports, reexports, and in-country transfers to or within the UAE.
Key changes to the EAR include:
- Removal from Country Groups D:3 and D:4 and Additional License Exceptions. The removal of the UAE from Country Groups D:3 and D:4 makes additional license exceptions available for certain items controlled to the UAE for chemical and biological (“CB”) or missile technology (“MT”) reasons, including License Exceptions TMP, GOV, TSU, AVS, and APR. It also makes additional provisions of License Exceptions ACE and BAG available for the UAE.
- Addition to Country Group A:5 and License Exception STA. Adding the UAE to Country Group A:5 makes License Exception STA available for exports, reexports, and transfers (in-country) of eligible items to or within the UAE, provided the ultimate consignee and all end users are approved entities listed in the newly added Supplement No. 8 to Part 740 of the EAR (“Approved Entities in Supp. No. 8”) and all requirements of License Exception STA are otherwise met. Only a subset of the Approved Entities in Supp. No. 8 are eligible to receive items under License Exception STA. These include the UAE government agencies, certain US-headquartered AI companies (e.g., Amazon, Apple, Google, Meta, Microsoft, OpenAI) and their UAE-based subsidiaries. Notably, two UAE-based AI companies in Supp. No. 8 remain ineligible to receive items under License Exception STA but are eligible to receive advanced computing items without a license, pursuant to EAR § 742.6(a)(6)(iii)(A) and (B) (as discussed below).
- Removal of Certain Missile-Related End Uses. The removal also lifts the missile-related end use restrictions in EAR §§ 744.3(a)(1) and (3) and the restrictions on US Persons providing support for missile-related activities in EAR § 744.6(b)(2).
- License Requirements for Advanced Computing Items to or within the UAE. Notwithstanding the UAE’s removal from Country Group D:4 and addition to Country Group A:5, license requirements will continue to apply for advanced computing items destined to or within the UAE under EAR § 742.6(a)(6)(iii)(A) and (B), except where the ultimate consignee and all end users are Approved Entities in Supp. No. 8. These requirements were implemented through explanatory comments in the preamble of the Final Rule for items described in subparagraph (A) and through amendments to EAR § 742.6(a)(6)(iii)(B) for items in subparagraph (B). In the preamble to the Final Rule, BIS also stated a favorable licensing review policy for applications to export semiconductors and servers to a UAE-headquartered company.
Companies with UAE-facing business should reassess licensing determinations for controlled products in light of the UAE’s new Country Group A:5 status and the additional license exceptions now available. While these present expanded opportunities, companies should continue to conduct appropriate due diligence and monitor for red flags indicating potential diversion of sensitive US goods and technology, e.g., “to ensure illicit procurement networks do not take advantage of the UAE’s favorable status under the EAR,” as expressed by BIS in the preamble to the Final Rule.
