UAE Boosts AI Tech with Pax Silica

The UAE Joins Pax Silica: Advancing AI and Chip Supply Chain

The United Arab Emirates has once again become part of a significant global alliance, this time joining the Pax Silica initiative led by the United States, aimed at securing the supply chain for artificial intelligence and semiconductors. The decision not only reflects the country's technological ambitions but is also a strategic move to deepen economic ties with Washington.

What is Pax Silica?

Pax Silica is a multilateral program aimed at ensuring the security of semiconductors and supply systems serving artificial intelligence (AI). Initiated by the USA, the initiative is part of an economic strategy that seeks to reduce the technological dependence of the USA and its allies on rival countries and promote cooperation among reliable partners.

Countries such as Australia, Japan, Singapore, the United Kingdom, South Korea, Israel, and Qatar have already joined the program. Now, the UAE has officially become a member, further elevating the country's weight in international technological participation.

The Three Pillars of the Supply Chain: Logistics, Industrial Capacity, and Energy

According to the US Under Secretary of State for Economic Affairs, Pax Silica is not just about who manufactures the most advanced chips, but also about securing and optimizing every stage of the entire supply chain, the "arteries." The focus is on three key elements:

1. Logistics – the pulse of the supply chain.

2. Industrial Capacity – the physical strength enabling manufacturing and processing.

3. Capital and Energy – the fuel driving it all.

The United Arab Emirates can make significant contributions in all three areas. Through Dubai, they own one of the world's most crucial logistics hubs, while Abu Dhabi is becoming a strategic manufacturing and innovation node in the region through increasing industrial investments and energy supply projects.

The UAE's Vision Based on Artificial Intelligence

The UAE has previously made it clear that it intends to take a leading role in the AI field in the long term. To this end, the country has invested billions of dollars in AI-related developments, research centers, and technological infrastructure.

Strengthening relations with the United States is part of a strategy that positions the country as a bridge between Western technology and the Middle Eastern economic regions. This is particularly important as high-tech chips supporting artificial intelligence – such as products from NVIDIA and other American manufacturers – are increasingly subject to regulations, especially concerning exports to China.

Data Center Investments in Abu Dhabi

A tangible example of the cooperation is a multi-billion dollar project aimed at building one of the largest data center networks in Abu Dhabi with the involvement of American technology partners. Such investments not only invigorate the local economy but also provide opportunities for the regional deployment and scalability of global AI systems.

Data is the new oil, as the saying goes, and the UAE is eager to maximize this advantage. The new generation of data centers will serve not only the public sector but also finance, healthcare, commerce, and government systems—with AI-driven solutions.

Challenges: Iran, Tariff Threats, and Geopolitics

While the cooperation is progressing spectacularly, it is not without tensions. It has been raised that the USA is considering imposing a 25 percent tariff on countries conducting business with Iran—and the UAE could potentially be involved. The American side, however, emphasized that the relations with the Emirates are so deep and stable that these sanction threats are unlikely to disrupt shared goals.

Why Hasn't Saudi Arabia Joined?

Interestingly, while Qatar is participating in the Pax Silica program, Saudi Arabia—which also harbors significant AI ambitions—has not yet joined the initiative. Although the USA has started negotiations with Riyadh, the two countries are mainly moving toward a bilateral AI agreement.

This indicates that countries in the region are approaching the issue of technological sovereignty and partnership in different ways—the UAE, however, continues to take a multilateral approach on the global tech diplomacy stage.

Summary

The United Arab Emirates' accession to the Pax Silica program is not merely a diplomatic gesture but a strategic advancement in the areas of AI and technological supply chain security. Through Dubai and Abu Dhabi, the country further strengthens its position on the global technological map while elevating its relations with Washington to a new level.

The future clearly points towards digitalization, artificial intelligence, and geopolitically-based technological cooperation—and the UAE is once again at the forefront of this path.

(Source based on Pax Silica membership.)