From Pax Silica to water security: What was discussed at US-UAE economic policy dialogue

In a significant demonstration of strengthened bilateral relations, the United States and United Arab Emirates convened their eleventh Economic Policy Dialogue in Abu Dhabi on January 15, 2026. The high-level meeting, co-chaired by Saeed Mubarak Al Hajeri, UAE Minister of State, and Jacob Helberg, US Under-Secretary of State for Economic Affairs, yielded substantial advancements across multiple strategic sectors.

The dialogue reaffirmed the UAE’s position as America’s premier trade partner in the Gulf region—a distinction maintained for nearly two decades—while highlighting the substantial US trade surplus with the Emirates. Central to discussions was the UAE’s reaffirmed commitment to channel $1.4 trillion into the US economy over the coming decade, cementing its status as Washington’s most significant regional economic ally.

Trade metrics revealed impressive growth, with total non-oil commerce surpassing $38 billion by 2024. Preliminary 2025 data indicated continued expansion, with first-half bilateral trade reaching $19.3 billion—a 3.4% year-on-year increase—particularly benefiting American energy, aviation, and technology industries.

Strategic technological collaboration featured prominently, with both nations endorsing the US-UAE AI Acceleration Partnership established during President Trump’s May 2025 visit. This framework enables US companies to export advanced AI semiconductors to approved Emirati entities while implementing enhanced security protocols. The partnership has already catalyzed substantial Emirati investment into American AI infrastructure, research centers, and cloud architecture.

Attention focused on the developing five-gigawatt AI campus in the UAE, poised to become the world’s largest such facility outside the United States. Both parties explored additional cooperation in quantum computing, genomics, and space exploration through a proposed Science and Technology Agreement.

Supply chain security emerged as a critical priority, with officials discussing operationalization of the US-led Pax Silica Declaration—which the UAE formally joined on January 14, 2026. This initiative aims to establish secure, innovation-driven supply chains for AI-era technologies. Both nations also reiterated support for the India-Middle East-Europe Economic Corridor (IMEC), emphasizing port and rail capacity enhancements.

The dialogue extended to financial cooperation, including counter-illicit finance measures, sanctions coordination, and the anticipated 2026 launch of the UAE-US Treasury Engagement Framework. UAE representatives welcomed the US Treasury’s Known Investor pilot program for CFIUS processes.

Environmental sustainability gained prominence as Al Hajeri announced UAE’s co-hosting of the 2026 UN Water Conference with Senegal. Both delegations expressed commitment to exploring cooperation among I2U2 nations (India, Israel, UAE, US) in energy security, critical minerals, and water security.

The comprehensive discussions spanned investment, trade, intellectual property, tourism, digital economy, emerging technologies, energy, transportation, and infrastructure, demonstrating the multifaceted nature of the US-UAE economic partnership and their shared commitment to global economic stability.