Tech Explained: Here’s a simplified explanation of the latest technology update around Tech Explained: UAE Joins Global AI Tech Bloc, Reshaping Economic Strategies in Simple Termsand what it means for users..
Pax Silica focuses on securing the supply chains behind advanced AI. It targets four pillars: compute, semiconductors, critical minerals, and energy. US officials describe it as “silicon statecraft,” aimed at building a trusted tech ecosystem.
As of January 19, 2026, nine countries have formally signed the declaration. They are the US, the UK, the Netherlands, Israel, Qatar, the UAE, Japan, South Korea, Singapore, and Australia. The coalition has expanded quickly since its first summit in Washington.
Who has joined, why it matters
The bloc now spans North America, Europe, the Middle East, and the Asia-Pacific. It brings together chip designers, equipment hubs, energy producers, and capital-rich states. This mix gives the group control over many of the inputs behind modern AI systems.
US policymakers see Gulf states as critical to the future of AI infrastructure. Large data centres need stable energy and long-term financing. The UAE and Qatar offer both through energy reserves and sovereign wealth.
India, access, the “moving gap”
India was absent from the first summit in December 2025. In January, the US ambassador to India, Sergio Gor, formally invited New Delhi to join. Officials expect India to sign in February 2026, positioning it as a large alternative manufacturing base.
Pax Silica also reinforces a US policy called the “18-month moving gap.” The aim is to keep a permanent technology lead over rivals. Members gain preferred access to advanced chips, frontier AI systems, and high-end manufacturing tools.
Non-members face tighter export controls. Access to the full AI stack, from Nvidia chips to advanced lithography, stays largely inside the bloc. This turns membership into both an economic and strategic advantage.
How it will shape global trade
Not every participant holds full status. The nine signatories have signed the main operational document for economic security. Taiwan, the European Union, Canada, and the OECD have attended summits as observers or special guests.
Taiwan’s role remains limited because of geopolitical sensitivity around its semiconductor dominance. The tiered structure lets the bloc share coordination while restricting sensitive technology. It also gives Washington flexibility in how access is granted.
For global trade, Pax Silica effectively creates a new tech-aligned zone. Members plan to coordinate joint investments, including mega-projects like the proposed $500 billion ‘Stargate’ data centre programme. They also aim to build mineral refining capacity outside Chinese control.
The bloc will align export rules on advanced hardware and frontier AI models. The goal is to prevent technology leakage to countries of concern. For the UAE, membership places it inside the planning of global AI infrastructure, not just as a buyer, but as an energy, capital, and technology partner.
Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence.
Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.