Gulf states move towards US-led AI supply chain pact

Qatar and the United Arab Emirates are set to join a United States–led initiative aimed at securing global artificial intelligence and semiconductor supply chains, signalling a widening of Washington’s technology diplomacy into the Gulf and underlining the strategic importance of advanced computing hardware to future economic and security policy.

The planned inclusion of the two Gulf states was outlined by Jacob Helberg, the US undersecretary of state for economic affairs, who said the move reflected growing alignment between Washington and key Middle Eastern partners on safeguarding critical technologies. The initiative focuses on ensuring trusted production, secure logistics, and shared standards for AI chips and related infrastructure at a time when global supply chains remain vulnerable to geopolitical shocks.

For the United States, bringing Qatar and United Arab Emirates into the framework serves both economic and strategic objectives. AI accelerators and advanced semiconductors underpin sectors ranging from defence systems and cloud computing to energy optimisation and financial services. Ensuring that friendly states participate in coordinated oversight of these technologies reduces exposure to supply disruptions and limits the risk of sensitive components being diverted to hostile actors.

The decision is also notable for its regional implications. The Middle East has long been shaped by political divisions that have complicated multilateral cooperation. A technology-focused framework backed by Washington offers a platform where Gulf states and Israel can collaborate pragmatically on shared economic interests, even as broader diplomatic tensions persist. US officials have increasingly framed technology partnerships as a neutral, forward-looking area where cooperation can advance without reopening entrenched political disputes.

Qatar and the UAE arrive at the table with distinct but complementary strengths. The UAE has invested heavily in digital infrastructure, data centres and AI research, positioning itself as a regional hub for advanced technology deployment. Abu Dhabi and Dubai have pursued partnerships with global chipmakers and cloud providers, while regulators have sought to balance innovation with security controls. Qatar, meanwhile, has focused on integrating advanced computing into energy management, smart cities and national research institutions, leveraging its gas wealth to fund long-term digital transformation.

Washington’s initiative is understood to emphasise common standards for export controls, supply chain transparency and responsible AI development. Participants are expected to share information on procurement and logistics, coordinate responses to shortages, and align on safeguards that prevent advanced chips from being used in ways that undermine international security. Such coordination has gained urgency as AI models become more compute-intensive and as competition over chip manufacturing capacity intensifies.

The broader context includes a global race to secure semiconductor fabrication and packaging capabilities. While East Asia remains central to chip manufacturing, policymakers in the US and allied economies have sought to diversify supply chains and build trusted networks. Gulf states, with their capital resources and strategic locations, are increasingly viewed as valuable partners in financing, hosting and operating elements of this ecosystem, even if they are not primary manufacturing centres.

Analysts note that the initiative reflects a shift in US engagement with the Middle East, placing technology and economic integration alongside traditional security ties. Rather than focusing solely on arms sales or energy markets, Washington is using AI and semiconductors as anchors for longer-term partnerships that bind regional economies into US-aligned standards and governance frameworks.

At the same time, the move raises questions about how Gulf states will balance participation in a US-led framework with their extensive economic links to Asia, particularly China, which is a major trading partner and technology supplier for the region. Both Qatar and the UAE have sought to position themselves as open, globally connected economies, and will need to navigate export control regimes and data governance rules carefully to avoid constraining their broader commercial relationships.