UAE Bolsters Economic Ties With the US by Joining AI Supply Chain Program

Introduction

The United Arab Emirates (UAE) has taken a decisive step to strengthen its position in the global artificial intelligence ecosystem by joining a U.S.-led initiative aimed at securing AI and semiconductor supply chains. The programme, known as Pax Silica, underscores deepening economic and technological ties between the UAE and the United States at a time when AI infrastructure has become a strategic geopolitical asset.

The move signals the UAE’s growing ambition to emerge as a global AI and data infrastructure hub while aligning itself with Western efforts amid global AI power shifts and geopolitics.

What Is Pax Silica and Why It Matters

Pax Silica is a U.S.-backed framework designed to secure critical AI and semiconductor supply chains among trusted partners, as Reuters reported earlier this week. The initiative focuses on three core pillars of the modern AI economy:

  • Logistics – ensuring resilient global movement of chips, equipment, and materials

  • Industrial capacity – expanding manufacturing and data centre infrastructure

  • Capital and energy – financing and powering AI at scale

According to Jacob Helberg, the UAE is viewed as a “comprehensive partner” capable of contributing across all three dimensions. This positioning places the UAE alongside countries such as Australia, Britain, Japan, Israel, Qatar, Singapore, and South Korea.

UAE’s Strategy to Become a Global AI Hub

The UAE has invested billions of dollars in AI-related infrastructure, talent acquisition, and advanced computing capacity as part of the broader AI-driven global economic competition. Its strategy relies heavily on access to U.S. technology, including some of the world’s most advanced semiconductor chips.

A major pillar of this strategy is the development of large-scale data centre hubs in Abu Dhabi, built using U.S. technology. These facilities are designed to support generative AI models, cloud services, and high-performance computing—capabilities essential for national AI competitiveness.

This ambition aligns closely with the UAE’s broader economic diversification agenda, reducing long-term dependence on hydrocarbons.

AI Supply Chains as Economic Statecraft

The inclusion of the UAE in Pax Silica reflects a broader shift in how AI is treated by governments—not merely as a technology sector, but as a strategic economic and national security asset.

The programme is part of the economic statecraft approach associated with Donald Trump’s administration, which prioritizes allied cooperation in critical technologies. The goal is to ensure that AI systems, chips, and data infrastructure are built within trusted geopolitical networks.

This approach mirrors patterns already seen in energy security and rare-earth supply chains.

Regional Dynamics: Why Saudi Arabia Is Not Included

While Qatar is a member of Pax Silica, Saudi Arabia—another regional heavyweight with strong AI ambitions—is not currently part of the programme. According to U.S. officials, Washington and Riyadh have instead pursued a separate bilateral AI agreement, reflecting different strategic calculations.

This divergence highlights how AI partnerships are becoming increasingly selective, shaped by trust, alignment, and supply chain security rather than geography alone.

Conclusion

By joining Pax Silica, the UAE is not just participating in a supply chain initiative—it is positioning itself at the center of the next phase of global AI competition. As artificial intelligence becomes inseparable from economic power, energy security, and geopolitics, partnerships like these will define which nations shape the future of technology.

For the UAE, alignment with U.S.-led AI infrastructure strategies may prove decisive in transforming the country into a long-term global AI powerhouse.

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