Tech Explained: Qatar, UAE Join US Tech Supply Chain Initiative in Simple Terms

Qatar and the United Arab Emirates will soon join a U.S.-led initiative aimed at securing AI and semiconductor supply chains, a move that underscores Washington’s push to reshape global technology cooperation and reduce reliance on rival powers.

Undersecretary of State for Economic Affairs Jacob Helberg said the inclusion of the two Gulf states reflects a deliberate U.S. effort to bring Israel and Arab partners into a shared, technology-focused economic framework, despite the Middle East’s long history of political divisions.

The initiative, known as Pax Silica, is designed to safeguard the entire technology supply chain, spanning critical minerals, advanced manufacturing, computing capacity, and data infrastructure. It has emerged as a central component of the Trump administration’s economic statecraft strategy, which seeks to align trusted partners around sensitive technologies while limiting exposure to geopolitical competitors.

“The Silicon Declaration isn’t just a diplomatic communiqué,” Helberg told Reuters. “It’s meant to be an operational document for a new economic security consensus.”

From energy security to technology security

The planned entry of Qatar and the UAE marks a significant shift for two countries whose strategic importance has historically been tied to oil and gas production. Both governments have invested heavily in technology, AI, and advanced manufacturing in recent years as part of broader economic diversification drives.

Helberg said Pax Silica could help accelerate the Middle East’s transition away from energy dependence toward a more technology-driven growth model.

“For the UAE and Qatar, this marks a shift from a hydrocarbon-centric security architecture to one focused on silicon statecraft,” he said.

The two countries are expected to formally join the initiative in mid-January, with Qatar slated to sign the Pax Silica declaration on Jan. 12, followed by the UAE on Jan. 15.

They will join an existing group that includes Israel, Japan, South Korea, Singapore, the UK, and Australia, all of which bring distinct industrial and technological strengths to the table.

A “coalition of capabilities”

Unlike traditional military or political alliances, Pax Silica is structured around economic and industrial capacity rather than shared defense commitments, Helberg said. Membership is determined by what each country can contribute across the technology value chain, from raw materials and manufacturing expertise to research, data infrastructure, and market access.

Helberg described the initiative as a “coalition of capabilities,” signaling a more flexible approach to international cooperation that prioritizes resilience and interoperability over formal treaty structures.

This model reflects growing concern in Washington and allied capitals about the vulnerability of global technology supply chains, particularly for semiconductors and AI-related infrastructure, which are increasingly seen as strategic assets with national security implications.

U.S. officials have warned that disruptions in these supply chains—whether from geopolitical tensions, export controls or physical chokepoints—could have far-reaching consequences for economic growth, defense readiness, and technological leadership.

Timing and regional backdrop

The announcement comes as regional and global attention turns to the Future Minerals Forum, a Saudi government-led conference focused on minerals and supply chains, scheduled to take place in Riyadh from Jan. 13 to Jan. 15. The event is expected to draw senior officials, industry executives and investors from around the world.

Critical minerals, such as lithium and rare earth elements, are a key input for semiconductors, batteries, and other advanced technologies, making them a central concern for Pax Silica’s agenda.

Helberg said the initiative will focus this year on expanding its membership, developing strategic projects to secure supply chains and coordinating policies to protect critical infrastructure and sensitive technologies. The group met in Washington last month and is expected to convene several times over the course of the year.

Trade corridors and industrial projects

Among the ideas under discussion are projects to modernize trade and logistics routes using advanced U.S. technology, including the India-Middle East-Europe Corridor, which has been promoted by Washington as a way to boost regional integration and expand America’s economic footprint.

Helberg said such efforts could help link manufacturing hubs, data infrastructure, and transportation networks across regions that have traditionally been weakly connected, while offering an alternative to rival-led infrastructure initiatives.

U.S. and Israeli officials also plan to launch a Pax Silica-linked Strategic Framework, which will include “Fort Foundry One,” an industrial park in Israel intended to accelerate technology and manufacturing projects aligned with the initiative’s goals.

AI cooperation is another area of focus. Helberg said discussions are under way on closer collaboration in AI, with a memorandum of understanding tentatively planned for Jan. 16.

Taken together, the expansion of Pax Silica into the Gulf highlights how technology supply chains are increasingly shaping diplomacy and alliances, as countries reposition themselves in a global economy where control over silicon, data, and computing power is becoming as strategically important as control over oil once was.

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