UAE commits $1.4 trillion to US economy

UAE commits $1.4 trillion to US economy - Trade Treasury Payments

23 March 2025

The United Arab Emirates (UAE) has announced plans to invest $1.4 trillion in the United States over the next decade. The announcement follows a series of meetings between Emirati officials and US President Trump.

According to a statement from the US Embassy in the UAE, the investment, one of the largest foreign investment pledges in American history, will be across several sectors, including artificial intelligence infrastructure, semiconductor manufacturing, energy transition initiatives, and large-scale industrial production.

A complete breakdown of the investment plan has yet to be been made public.

A smelter signal

As part of the broader commitment, Emirates Global Aluminium (EGA), a producer of the metal, will construct an aluminium smelter in the United States, the first new facility of its kind on American soil in 35 years. Analysts expect the investment to nearly double US domestic aluminium output, a shift likely to resonate across defence, construction, and renewable energy sectors, all of which rely heavily on aluminium inputs.

The smelter is the only completely new project disclosed in the UAE’s investment framework so far. It also reinforces EGA’s international expansion strategy and reflects growing Emirati interest in bolstering industrial capacity in key allied economies.

EGA is jointly owned by Mubadala Investment Company, which manages over $330 billion in assets, and the Investment Corporation of Dubai.

While the dollar amount is eye-catching, analysts note that many of the individual investment initiatives within the $1.4 trillion plan are extensions of previously announced deals. Still, the formal packaging of these into a singular framework carries diplomatic weight.

The timing is also notable. With global supply chains still rebalancing after recent disruptions, the announcement may help boost consumer confidence in the resilience and competitiveness of the American industrial base.

Legacy and leverage

For President Trump, the deal reflects years of back-channel diplomacy and personal relationships with Gulf leadership, a region where Trump and his family maintain long-standing business connections.

Much of the investment plan’s credibility will hinge on its execution and with minimal details included in the initial announcement, stakeholders will be watching closely for subsequent releases, including information on groundbreakings, and timelines.

Yet, if realised at scale, this could mark a turning point for US-Emirati relations and the role of Gulf capital in shaping global production ecosystems.