Pax Silica and the Gulf: Qatar and the UAE Join a US-Led AI Supply Chain
The formal entry of Qatar and the United Arab Emirates into the Pax Silica agreement marks a clear pivot in Middle Eastern economic strategy and global AI supply chains. Their sign-up moves them from energy-export roles toward being active players in compute, semiconductors and data infrastructure. This shift ties Gulf capital and capacity directly into an allied technology network led by the United States.
Both nations now align with a “coalition of capabilities” that includes the UK, the US, Australia, Israel, Japan, Singapore and South Korea. Pax Silica, also known as the “Silicon Declaration,” was launched under the previous administration to shore up supply chains for advanced chips and AI compute power. The name borrows from Pax Romana, swapping in “Silica” to spotlight silicon’s role in modern strategic power.
“the third pillar of the report extends the domestic technocratic agenda to the world. By exporting American AI frameworks, hardware standards, and regulatory templates to allies, the Plan seeks to cement a global regime of expert rule.”
A sharp critique has circulated that frames the agreement as more than cooperation: “Any nation that signs the Pax Silica Declaration will receive all the state-of-the-art AI technology developed by Silicon Valley, BUT in doing so, they will be colonized by the United States.” This line captures the fear that access may come with strategic strings attached, even as Gulf states count the commercial upside.
Qatar signed on 12 January and the UAE was due to follow on 15 January, cementing the Gulf’s practical commitment to the pact. The coalition is explicitly focused on semiconductors, data infrastructure and artificial intelligence, aiming to create resilient supply networks that are not critically dependent on rival powers. That intent underpins many of the pact’s specific projects and financial commitments.
Jacob Helberg, US Under-Secretary of State for Economic Affairs, put the rationale bluntly: “If the 20th century ran on oil and steel, the 21st century is going to run on compute and minerals.” That line frames Pax Silica as an effort to transform natural-resource wealth into technological leverage.
Policy architects describe this shift as “silicon statecraft,” a model that trades pure resource rent for control over digital supply chains and infrastructure. Pax Silica focuses on three pressure points in AI infrastructure: critical minerals, energy and compute, and sovereign capital. Each point is meant to reduce chokepoints and bolster allied capacity.
First is critical minerals. Around 90% of rare earth processing currently sits under Chinese control, and the pact seeks alternative sources and processing chains aligned with Western partners. Building that network reduces a major single-point vulnerability in chip and hardware production.
Second is energy and compute. Large AI models demand enormous, steady electricity and cooling, which the Gulf can supply thanks to gas and solar reserves. The UAE and Qatar are positioning to host large-scale data centres or “compute farms” where models are trained and maintained.
Third is capital. The Qatar Investment Authority controls approximately US$524bn, while UAE sovereign wealth funds hold more than US$1tn, and that money is being channeled into tech infrastructure. Notable projects tied to these flows include “Stargate,” a US$500bn data centre initiative involving major industry players, and a US$100bn AI investment venture linking Abu Dhabi’s MGX with global asset managers and cloud providers.
Gulf states become direct stakeholders in AI innovation through these arrangements, using sovereign funding to pivot national economies toward high-value tech assets. Infrastructure upgrades are also part of the plan, with an emphasis on the India-Middle East-Europe Corridor to tie ports, rail and undersea cables into a more integrated logistics and data network.
The pact deepens regional ties through shared industrial projects and cross-border investments, from Israeli foundry initiatives to a proposed 5 gigawatt AI hub in Abu Dhabi. Participation isn’t enforced by treaty, but it carries practical conditions: one Gulf AI firm had to end certain Chinese partnerships to complete a major deal with a US cloud provider. Jacob Helberg summed up the strategic aim: “Our strategy is to create a competitive edge so steep, so insurmountable that no adversary or competitor can scale it.”
By combining rare earth access, sovereign funding and data infrastructure, Pax Silica maps a soft alignment around compute power. The ports and data centres of Doha and Abu Dhabi have moved to the center of a new global equation in technology and influence.