UAE expands economic ties with US by joining AI program

Where Diplomacy Meets News

UAE expands economic ties with US by joining AI supply chain program

January 15, 2026

ABU DHABI,— The United Arab Emirates has joined a U.S.-led initiative to protect artificial intelligence AI and semiconductor supply chains, known as Pax Silica, signaling deeper economic cooperation with Washington.

The program, described as a cornerstone of U.S. economic strategy under the Trump administration, aims to reduce reliance on rival nations while promoting collaboration among allied partners.

Alongside the UAE, participating countries include Australia, Britain, Israel, Japan, Qatar, Singapore, and South Korea.

Jacob Helberg, U.S. Undersecretary of State for Economic Affairs, told Reuters that the initiative focuses on three main aspects of supply chains: logistics, industrial capacity, and capital and energy.

He said the UAE is seen as a “comprehensive partner” capable of contributing to all three areas.

Helberg invited UAE officials to a ministerial-level meeting in Washington next month on critical minerals, which he said would feature a broad group of countries.

He extended the invitation on behalf of President Donald Trump and Secretary of State Marco Rubio.

The UAE has invested billions of dollars to develop itself as a global hub for artificial intelligence and aims to leverage its close ties with the United States to access advanced technologies, including some of the world’s most sophisticated computer chips.

The country is also involved in a multibillion-dollar project to build one of the largest data center hubs in Abu Dhabi using U.S. technology.

When asked about potential impacts of Trump’s 25% tariff threat on countries trading with Iran, including the UAE, Helberg expressed confidence in the strength and depth of the U.S.-UAE relationship.

While Qatar is also participating in Pax Silica, Saudi Arabia, a regional heavyweight with its own AI ambitions, is not part of the initiative.

Helberg noted that U.S. officials had held initial discussions with Riyadh and that Washington and Saudi Arabia had already negotiated a substantial bilateral AI agreement.

(With files from Reuters)