July 2026 Updates for Design Engineers
Read the latest semiconductor and electronics news and updates.
In this edition:
UAE Gains Expanded Access to Advanced U.S. AI Technologies Through Export Control Reform
HUMAIN and Cohere Expand Saudi Arabia's Sovereign AI Infrastructure
Scale AI and Dell Technologies Partner to Accelerate Enterprise AI Adoption in Qatar
KERNO Expands UAE Manufacturing with New Enterprise IT Hardware Facility
UAE Gains Expanded Access to Advanced U.S. AI Technologies Through Export Control Reform
The United States has introduced one of the most significant changes to its technology export policy toward the United Arab Emirates in recent years. Effective July 10, 2026, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR), granting the UAE enhanced export treatment and expanding access to selected advanced computing technologies, AI infrastructure and other dual-use products.
The regulatory change removes the UAE from EAR Country Groups D:3 and D:4 and adds it to Country Group A:5, placing the country alongside a limited group of trusted U.S. technology partners. This enables broader use of License Exception Strategic Trade Authorization (STA) for eligible government entities and approved commercial organizations, reducing licensing requirements for a range of controlled exports.
One of the most closely watched aspects of the new rule is its impact on advanced computing hardware. Under the updated regulations, the UAE Government and specifically approved organizations may receive certain advanced AI chips, AI servers and related computing systems without obtaining individual export licenses, provided all conditions defined by BIS are satisfied. The change is consistent with the U.S.-UAE Artificial Intelligence Cooperation Framework, signed in May 2025, which established commitments covering trusted AI infrastructure, technology security and reciprocal investment in AI development.
The initial list of approved UAE organizations includes G42 and Core42, both of which have been authorized to receive advanced computing items under the revised regulations. Under the current rule, these authorizations are valid until April 6, 2027, unless extended by the U.S. Department of Commerce. The rule also permits several U.S.-headquartered technology companies and their subsidiaries operating in the UAE to utilize the new export framework where applicable, including Amazon, Apple, Meta, Google, Microsoft, Oracle, OpenAI and xAI. BIS noted that these authorizations remain subject to strict eligibility requirements, end-use controls and ongoing compliance obligations. Beyond AI processors, the revised export framework expands eligibility for license exceptions covering additional categories of controlled technology. Depending on the applicable product classification, approved UAE recipients may benefit from simplified exports of selected military items, commercial satellites, spacecraft and dual-use technologies supporting sectors such as oil and gas, desalination and civil nuclear energy. The Department of Commerce stated that these measures are intended to strengthen both commercial cooperation and long-term strategic collaboration between the two countries while maintaining safeguards against unauthorized technology diversion.
In announcing the decision, BIS cited the UAE's designation as a Major Defense Partner, its longstanding security cooperation with the United States and its commitments to protecting sensitive technologies. The Department also referenced the UAE's participation in advancing U.S. national security interests and its investment commitments under the bilateral AI cooperation framework as supporting factors for the policy change.
The announcement has attracted considerable attention across the semiconductor and AI industries because access to advanced U.S. processors remains one of the defining constraints for large-scale AI infrastructure worldwide. The revised policy is expected to simplify deployment of AI data centers, cloud computing platforms and high-performance computing infrastructure within the UAE, while creating additional opportunities for U.S. technology suppliers serving the region. Reuters also noted that the decision has generated discussion in Washington regarding technology security and export-control oversight, with U.S. officials emphasizing that the new framework continues to include strict compliance, monitoring and end-user verification requirements.
For organizations operating across the Middle East, the updated regulations reinforce the UAE's position as an increasingly important regional hub for AI infrastructure, advanced computing and digital transformation. While individual transactions remain subject to export classification, end-user approval and applicable EAR provisions, the regulatory changes substantially improve the environment for authorized deployment of advanced U.S. technologies into the UAE market.
The revised export framework strengthens the UAE's position as a destination for advanced AI infrastructure and high-performance computing by reducing regulatory barriers for eligible organizations while maintaining strict export-control oversight. As additional AI platforms, cloud infrastructure and advanced computing projects move from planning into deployment, requirements are expected to grow for technologies supporting compute acceleration, high-speed networking, memory, storage, power delivery and thermal management.
While the policy change applies specifically to the UAE, it could strengthen the wider technology ecosystem across the Middle East and Africa by encouraging further investment in advanced computing infrastructure. Through its regional engineering network and close engagement with industrial and technology customers, McKinsey Electronics helps semiconductor manufacturers identify where new technology adoption is emerging and align their solutions with evolving regional requirements.
Sovereign AI Infrastructure Arrives in Ras Al Khaimah
The United Arab Emirates has taken another step in strengthening its artificial intelligence infrastructure with the launch of a sovereign AI data center inside Innovation City, the AI-focused free zone in Ras Al Khaimah. The facility, operated by Siada, an IOPn enterprise, became operational in early July 2026 and is designed to provide organizations with in-country AI computing while ensuring that both data and processing remain entirely under UAE jurisdiction.
Unlike traditional cloud services that may distribute workloads across multiple countries or regions, sovereign AI infrastructure is designed around a single jurisdiction. This allows governments, regulated industries and enterprises to maintain greater control over where sensitive information is processed and stored, helping them comply with evolving data residency, cybersecurity and regulatory requirements. As AI adoption accelerates across sectors such as financial services, healthcare, government and critical infrastructure, sovereign compute is becoming an increasingly important consideration for organizations deploying large-scale AI workloads.
The Ras Al Khaimah deployment is powered by NVIDIA Blackwell B200 GPUs, among the industry's most advanced AI accelerators for training and inference. Global demand for these processors has significantly exceeded supply, making access to high-performance AI computing a strategic advantage for organizations building foundation models, generative AI applications and enterprise AI platforms. Through Siada, companies operating within Innovation City can access GPU resources on an hourly basis, reserve dedicated capacity or deploy fully managed on-premises environments while keeping every workload inside the UAE.
The project also highlights the distinct roles of the two partners. Siada is responsible for building, owning and operating the sovereign AI computing infrastructure, while Innovation City provides the technology ecosystem where companies can immediately utilize these capabilities. Rather than functioning solely as a business licensing hub, the free zone is expanding its value proposition by integrating advanced computing infrastructure directly into its technology ecosystem, enabling AI startups and enterprises to develop, train and deploy applications without relying on overseas cloud regions.
The launch reflects a broader trend across the Gulf region, where governments and technology ecosystems are investing heavily in local AI infrastructure. While cloud computing has traditionally relied on globally distributed data centers, increasing attention is being placed on sovereign AI environments that provide stronger control over data location, infrastructure governance and compliance. This shift is being driven by growing AI adoption, stricter regulation of cross-border data flows and increasing demand for trusted computing environments capable of supporting mission-critical workloads.
The Ras Al Khaimah deployment reflects the growing importance of sovereign AI infrastructure as organizations seek greater control over data residency, security and regulatory compliance. As additional sovereign computing projects are developed across the UAE, demand is expected to increase for technologies supporting AI acceleration, high-bandwidth memory, high-speed interconnects, power delivery and thermal management.
While this project is specific to the UAE, it could contribute to a broader regional shift toward locally hosted AI infrastructure and encourage further investment in advanced computing capabilities across the Middle East and Africa. For semiconductor manufacturers, these developments may create opportunities to engage with technology providers, infrastructure developers and system integrators as future AI platforms are designed and deployed.
HUMAIN and Cohere Expand Saudi Arabia's Sovereign AI Infrastructure
Saudi Arabia's HUMAIN and Canadian enterprise AI company Cohere have announced a strategic collaboration focused on large-scale AI computing infrastructure, sovereign AI models and enterprise AI applications.
The agreement was announced on July 9, 2026, during Canadian Prime Minister Mark Carney's visit to Saudi Arabia. It combines HUMAIN's expanding AI infrastructure platform with Cohere's expertise in enterprise-focused foundation models.
Under the collaboration, HUMAIN will allocate at least 50 megawatts of dedicated AI computing capacity to support Cohere's next generation of foundation models. The initial deployment is expected to become operational in the fourth quarter of 2027, with the infrastructure intended to scale over the following five years as computing requirements evolve.
The planned deployment is intended to provide accelerated computing infrastructure for model research and development. Planned workloads include reinforcement learning, inference optimization and future AI research programs. Cohere said the collaboration is designed to provide the scale and flexibility required to support future generations of its enterprise AI models.
The project extends beyond computing capacity. HUMAIN and Cohere also plan to collaborate on sovereign AI models developed for regional requirements, including Arabic-language foundation models, domain-adapted models and specialized systems for enterprise and sector-specific applications.
Sovereign AI generally refers to the ability of a country or organization to develop and operate artificial intelligence systems within its own legal, operational and data-governance framework. This can include local computing infrastructure, controlled access to data, domestic model development and greater authority over how AI systems are deployed.
For Saudi Arabia, the collaboration is intended to support the development of locally relevant AI capabilities rather than relying exclusively on imported general-purpose models. Arabic-language systems and models trained for specific industries have the potential to improve performance in applications where language, local data and sector knowledge influence the quality of AI outputs.
The companies also plan to develop enterprise AI solutions for productivity, knowledge management, customer engagement and operational efficiency. Cohere will contribute its enterprise AI and model-development capabilities, while HUMAIN will provide infrastructure and full-stack deployment capacity within Saudi Arabia.
HUMAIN was established under Saudi Arabia's Public Investment Fund in May 2025. Its mandate spans the AI value chain, including data centers, cloud infrastructure, foundation models and AI applications. The company is also developing large-scale computing facilities and establishing partnerships with international semiconductor, cloud and technology companies.
Cohere, founded in Toronto in 2019, develops foundation models and enterprise AI technologies designed for business applications requiring secure access to organizational data, advanced retrieval capabilities and controlled deployment environments.
The 50-megawatt commitment illustrates the scale of infrastructure required to support advanced AI model development. Large AI computing platforms rely on dense clusters of accelerators supported by high-speed networking, large memory capacity, enterprise storage and efficient power delivery and thermal management. If deployed as planned, the overall performance of the platform will depend on how these technologies operate together to deliver reliable, large-scale AI computing.
The partnership combines enterprise AI software development with planned investment in dedicated computing infrastructure. Cohere is expected to gain access to AI computing capacity outside North America, while HUMAIN aims to strengthen Saudi Arabia's capabilities in AI model development, enterprise deployment and sovereign AI infrastructure. According to HUMAIN, the project represents Cohere's first significant international AI computing deployment outside North America.
For Saudi Arabia, the collaboration aligns with the Kingdom's broader objective of developing a knowledge-based economy, attracting international technology companies and expanding local AI capabilities. It also supports national efforts to strengthen the country's role in AI infrastructure and enterprise technology development.
The HUMAIN–Cohere collaboration highlights Saudi Arabia's longer-term strategy to combine AI infrastructure with locally developed enterprise AI capabilities. If the planned computing platform is deployed at the announced scale, it is likely to increase requirements for technologies supporting AI acceleration, high-bandwidth memory, high-speed interconnects, power delivery and thermal management.
While the project remains in its planned deployment phase, it reflects growing investment in sovereign AI platforms that integrate computing infrastructure, model development and enterprise applications. As sovereign AI initiatives evolve, semiconductor innovation will increasingly depend on close collaboration between infrastructure providers, platform developers and component manufacturers. Through its regional engineering presence, McKinsey Electronics helps global semiconductor companies engage with organizations shaping the Middle East's emerging AI ecosystem.
Scale AI and Dell Technologies Partner to Accelerate Enterprise AI Adoption in Qatar
Qatar has taken another step in advancing its national artificial intelligence strategy through a new partnership between Scale AI and Dell Technologies. The two companies signed a Memorandum of Understanding (MoU) to support AI adoption across government entities and enterprise organizations while contributing to Qatar's broader digital transformation objectives.
Rather than focusing on a single technology platform, the collaboration covers the infrastructure required to deploy AI at scale. The agreement includes AI computing platforms, networking, enterprise storage and integrated infrastructure designed to support organizations as they develop, deploy and manage AI workloads.
The partnership combines Dell Technologies' expertise in enterprise infrastructure with Scale AI's experience in developing and deploying artificial intelligence solutions. Together, the companies aim to provide organizations with the computing resources and implementation capabilities needed to integrate AI into day-to-day operations rather than limiting adoption to pilot projects.
A significant aspect of the agreement is its emphasis on practical AI deployment. Government agencies and enterprises increasingly require infrastructure capable of supporting large language models, computer vision, analytics and automation while maintaining performance, security and scalability. Delivering these capabilities depends on tightly integrated computing, storage and networking platforms rather than isolated hardware investments.
The announcement also aligns with Qatar National Vision 2030, which identifies digital transformation, knowledge-based industries and innovation as priorities for long-term economic development. AI has become a central element of this strategy, with investment extending across cloud infrastructure, smart cities, energy, healthcare, education and public services.
As organizations begin deploying AI across multiple business functions, infrastructure requirements also become more sophisticated. Enterprise AI environments require accelerated computing, high-performance storage, low-latency networking and resilient data center infrastructure capable of supporting continuous model training and inference. These systems also depend on advanced semiconductors, high-bandwidth memory, power management and thermal technologies working together to deliver reliable performance.
The Scale AI–Dell Technologies partnership reflects Qatar's objective of building the partnerships and infrastructure framework needed to support broader enterprise AI adoption. As future projects progress from planning into implementation, they are likely to increase requirements for enterprise AI infrastructure, including computing platforms, networking, storage and supporting semiconductor technologies.
While the timing and scale of future deployments will depend on individual projects and investment decisions, initiatives of this kind could strengthen the wider technology ecosystem across the Middle East and support future opportunities for enterprise AI adoption. As organizations move from evaluating AI strategies to implementing enterprise applications, semiconductor technologies will continue to play an important role in enabling secure, scalable and high-performance computing platforms.
Kuwait Outlines 5G-Advanced and AI Connectivity Roadmap
Kuwait's Communication and Information Technology Regulatory Authority (CITRA), in collaboration with Huawei, has released the Kuwait in the Era of 5G-Advanced and Artificial Intelligence Whitepaper, outlining a long-term vision for the evolution of the country's communications infrastructure. The document explores the transition toward 5G-Advanced (5.5G), the integration of artificial intelligence into mobile networks and a longer-term pathway toward future 6G technologies.
Rather than announcing new infrastructure deployments, the whitepaper establishes a strategic framework for the technologies and capabilities expected to support Kuwait's next phase of digital development. It examines how advances in connectivity, network intelligence and AI could improve network performance while enabling new applications across government, industry and enterprise sectors.
Among its key themes are the evolution of 5G-Advanced networks, enhanced indoor wireless coverage, AI-assisted network management, intelligent connectivity and industry digitalization. The document also considers how these technologies could provide a foundation for future communications services requiring greater reliability, lower latency and increased network capacity.
The whitepaper aligns with Kuwait's broader digital transformation objectives by highlighting the role of advanced communications infrastructure in supporting smart cities, industrial modernization, digital public services and emerging enterprise applications. While the document does not announce specific deployment timelines or procurement programs, it provides a roadmap for how future network evolution may support these national priorities.
As communications networks become increasingly intelligent, they rely on the integration of advanced hardware and software throughout the network architecture. The transition toward 5G-Advanced is expected to increase the importance of technologies such as RF front-end components, network processors, timing and synchronization devices, optical interconnects, edge computing platforms and power-management solutions that enable higher-performance and more efficient networks.
Although the whitepaper represents a strategic vision rather than an implementation program, it reflects growing regional interest in combining advanced connectivity with artificial intelligence to support future digital infrastructure. As operators, technology providers and government organizations evaluate the roadmap, future investment decisions may shape the next generation of communications infrastructure in Kuwait.
The publication of the Kuwait in the Era of 5G-Advanced and Artificial Intelligence Whitepaper highlights the importance of early planning as communications technologies continue to evolve. As Kuwait's 5G-Advanced roadmap progresses toward procurement and deployment, opportunities are likely to emerge for semiconductor technologies supporting next-generation wireless infrastructure, intelligent networking and edge computing. Through its regional engineering network and established customer relationships across the Middle East and Africa, McKinsey Electronics helps global semiconductor manufacturers engage with telecommunications, industrial and technology organizations as advanced connectivity ecosystems continue to develop.
KERNO Expands UAE Manufacturing with New Enterprise IT Hardware Facility
The United Arab Emirates continues to strengthen its position in advanced technology manufacturing with the opening of KERNO's new enterprise IT hardware production facility at Dubai Silicon Oasis (DSO). The facility, which officially opened in late June 2026 and was highlighted by the company again in July, marks another step in the UAE's efforts to expand local capabilities for enterprise computing and digital infrastructure.
The new manufacturing site has an annual production capacity exceeding 60,000 enterprise IT systems, including AI servers, edge computing platforms, x86 servers and enterprise storage solutions. The facility is designed to serve organizations deploying AI, cloud computing, cybersecurity and digital transformation projects across the region.
Unlike traditional electronics assembly operations focused on consumer products, KERNO's facility specializes in enterprise-grade computing systems. These platforms form the foundation of modern data centers, AI infrastructure and enterprise environments that require high processing performance, scalability and reliability.
The new manufacturing site has an annual production capacity exceeding 60,000 enterprise IT systems, including AI servers, edge computing platforms, x86 servers and enterprise storage solutions. The facility is designed to serve organizations deploying AI, cloud computing, cybersecurity and digital transformation projects across the region.
The investment reflects growing interest in locally assembled computing infrastructure. As governments and enterprises continue investing in AI and digital transformation, organizations are placing greater emphasis on shorter lead times, supply-chain resilience and systems configured for regional requirements. Manufacturing these platforms within the UAE supports faster deployment while contributing to the country's broader industrial development objectives.
The product portfolio also highlights the increasing convergence of artificial intelligence and enterprise computing. AI servers, high-performance storage and edge computing systems rely on tightly integrated architectures combining advanced processors, high-bandwidth memory, accelerators, networking technologies and sophisticated thermal management. As enterprise AI deployments continue to develop, demand is expected to grow for optimized computing platforms across sectors including government, financial services, healthcare, telecommunications and industrial automation.
Dubai Silicon Oasis has become an important technology ecosystem supporting semiconductor, electronics and advanced manufacturing companies. By combining manufacturing capabilities with research, technology development and digital infrastructure, the free zone continues to attract organizations involved in next-generation computing technologies and intelligent systems.
The KERNO facility also reflects a broader trend within the UAE toward expanding local capabilities in the manufacturing and integration of enterprise computing platforms. Producing these systems locally supports the development of regional supply chains while providing organizations with greater flexibility in deploying AI and enterprise infrastructure.
The expansion of enterprise hardware manufacturing creates opportunities beyond final system assembly, increasing requirements for processor and memory qualification, high-speed interconnects, enterprise storage, power conversion and thermal-management technologies as manufacturers validate and integrate complete computing platforms. While this investment is specific to the UAE, it reflects the country's continued focus on strengthening advanced manufacturing capabilities and could contribute to the broader evolution of enterprise technology across the Middle East. Through its relationships with OEMs, design teams and manufacturing partners across the Middle East and Africa, McKinsey Electronics helps semiconductor manufacturers engage earlier in regional product development, platform qualification and local integration activities.