The United Arab Emirates and the United States have established a joint framework aimed at enhancing the mining and processing of critical minerals and rare earth elements. This agreement was signed during the ministerial meeting on critical minerals held in Washington, D.C.
The signing was officiated by His Excellency Mohamed Hassan Al Suwaidi, Minister of Investment, and His Excellency Jacob Helber, U.S. Deputy Secretary of State for Economic Affairs. This event was part of a broader gathering organized by the U.S. Department of State, where over 50 international entities met to explore collaborative strategies for creating robust and flexible supply chains for critical minerals.
His Excellency Mohamed Hassan Al Suwaidi stated that the supply chains for critical minerals represent an interconnected global system. He emphasized the need for unified efforts and sustainable investments to fully capitalize on these resources. With projections predicting a threefold increase in demand for these minerals by 2030 and a fourfold increase by 2040, maintaining investment momentum will be crucial for meeting future needs and supporting sustainable industrial growth. He also noted that as the second-largest source of foreign investment in the UAE, the partnership with the United States serves as a cornerstone in addressing global challenges, facilitating joint investment, and developing impactful projects throughout the critical minerals value chain.
UAE’s Commitment
His Excellency Jacob Helber remarked that the UAE is a key partner for the United States, exemplified by its commitment to invest $1.4 trillion in the U.S. over the next ten years. He highlighted that this partnership encompasses essential sectors, laying the foundation for widely impactful collaboration, particularly in the critical minerals sphere, which enhances both economic and national security.
This framework reflects the depth of the bilateral partnership and the shared commitment to developing diverse and resilient supply chains, ensuring a steady provision of vital materials for defense and advanced technology sectors while promoting sustainable industrial growth. The agreement establishes a common methodology to expedite the securing of critical mineral supplies by leveraging existing policy tools, including U.S. industrial demand and storage infrastructure, along with the UAE’s strategic reserves. It also provides a platform to increase both public and private investments across the value chain, from mining and processing to recycling and subsequent activities.
Financing and Assurances
The two parties are dedicated to fostering investment through various mechanisms, including financing, guarantees, capital investments, purchase agreements, insurance, and streamlining regulatory processes.
Furthermore, the UAE and the U.S. plan to identify priority projects that address supply chain gaps and take concrete steps within six months of signing the agreement to secure funding for initiatives in both countries, aiming to result in marketable products for buyers in each market. The framework supports the expediting and simplification of licensing procedures in accordance with existing laws, and outlines collaborative measures that enhance market resilience. These measures will include addressing unfair trade policies and practices, exploring high-standard market mechanisms to improve transparency in business operations, and engaging with international partners to tackle global pricing challenges.
Additional areas of collaboration encompass investment in recycling technologies, improving the management of critical metal scrap and rare earth elements, geological mapping projects in the UAE, the U.S., and other agreed sites, as well as reviewing asset sale procedures for national security concerns, and partnering with third parties to bolster supply chain security.
The UAE reaffirms its commitment to international cooperation in developing shared solutions through its participation in the ministerial meeting and the signing of this framework, along with investment partnerships that support secure, flexible, and diverse supply chains for critical minerals, contributing to long-term global economic stability.