July 10 (Reuters) - The U.S. Department of Commerce loosened

export controls on the United Arab Emirates on Friday, making it

easier to export military items, certain commercial satellites

and spacecraft, according to a U.S. government posting in the

Federal Register.

The UAE government and approved companies also will now be able

to access advanced computing items license-free, the posting

said.

UAE companies G42 and Core42 and U.S. companies operating in the

country, including Amazon ( AMZN ), Apple ( AAPL ), and xAI, are among those that

no longer need licenses for AI chips and servers.

In providing the more favorable treatment for certain exports to

the UAE, the Commerce Department said the U.S. had worked with

the country for decades to counter Iran and its proxies,

including Hamas, Hezbollah and the Houthis.

"More recently, the UAE played a key role advancing U.S.

interests during Operation Epic Fury," the posting said,

referring to the U.S.-Israeli strikes on Iran that began in

February.

Additionally, it noted, the UAE was the largest U.S. trading

partner in the Middle East, and that its foreign direct

investment in the United States was valued at over $1 trillion.

Under the new regulation, the Commerce Department moved the UAE

into a country grouping that allows more license exceptions for

military and dual-use items controlled by the department.

The UAE will be the only country in the group that is not a

member of multilateral export control regimes. Other countries

in the grouping include NATO countries and other allies.

Other countries in the region such as Israel and Saudi Arabia

are not members of that group.