Qatar has joined a US-led initiative to secure global tech supply chains, to enhance bilateral relations and ensure the sustainability of global supply networks. 

Qatar will expand its international partnerships in semiconductors, advanced computing, cybersecurity, and digital technologies via the initiative, according to a news report published by Qatar News Agency. 

The Pax Silicia Declaration is a US-led economic security coalition to protect global tech supply chains, address AI supply chain opportunities and vulnerabilities, and explore joint investment. The initiative marks the first time countries are organizing around compute, silicon, minerals, and energy as shared strategic assets.

Dr. Ahmed bin Mohammed Al Sayed, Qatar’s minister of state for foreign trade affairs said the world is undergoing a profound transformation driven by AI, rising demand for energy and critical minerals, and rapid technological advancement.

“It supports Qatar's transition toward an innovation-driven economy, enhances the resilience of US supply chains, expands opportunities for joint research and technological development, strengthens public-private sector collaboration, and supports the growth of US companies operating in Qatar and across the region.”

US Under Secretary of State for Economic Affairs, Jacob Helberg welcomed Qatar's accession to the Declaration, describing the occasion as a pivotal moment for bilateral relations and for the global economy as a whole.

“If the 20th century ran on oil and steel, the 21st century runs on compute and the minerals that feed it,” said Helberg.

The United States and Qatar will work together on strategic investments, including critical minerals security initiatives and the modernization of global logistics infrastructure, he added. 

Qatar has launched several initiatives to fulfill its AI ambitions, including the Qatar AI Initiative as well as a national company, Qai, to develop and operate AI infrastructure within its borders and beyond. 

The PAX Silicia alliance is defined by capabilities rather than traditional alignments, said Helberg, bringing together countries with the resources and strategic vision to secure a shared technological future. 

Qatar becomes the eighth signatory, joining nations including Australia, Israel, Japan, Republic of Korea, Singapore, and the UK. The UAE is reportedly expected to join later this week.

The Middle East has emerged a hotspot for deal activity in 2025, surpassing Southeast Asia for the first time, and becoming the only emerging venture market to record an annual rise in deal count. 

The Middle East recorded a record 581 deals, up 13% annually, while narrowing the funding gap, with an all-time high of $3.4 billion, up 89% year-on-year. The performance was underpinned by stronger diplomacy ties, major events, and rising investor confidence according to data analytics firm Magnitt. 

The region saw a record $1 billion in deals worth $100 million or more, supported by the return of late-stage liquidity, diplomatic ties, key events, and rising investor confidence.

The GCC region stood out as a powerhouse, positioning itself as a destination of long-term capital, with five deals worth $100 million or more. Saudi Arabia was the most active country by funding, recording 257 deals worth $1.7 billion, with the UAE following at $1.58 billion up 67% year-on-year.   

“Throughout 2025, the region saw international investors from North America, Europe, and Asia continue to deepen their presence in the region across private capital, said Philip Bahoshy, CEO of Magnitt, in its latest report. 

“They were drawn by policy consistency, economic ambition and sustained investment in infrastructure. Global financial institutions and asset managers including Ray Dalio, Brevan Howard, KKR and Brookfield expanded their local footprint."

"Additionally, 9,800 millionaires were set to relocate to Dubai in 2025; 600 multinational companies have regional headquarters in Saudi Arabia and Dubai has passed a milestone of being home to over 100 global hedge funds,” Bahoshy added. 

M&A activity rose 41% year on year across the MENA region, while AI become an active investment theme, with related company funding increasing 204% annually to $817 million. 

Despite an 11% year-on-year decline, Singapore remained the most funded emerging venture market, with $3.08 billion. The Southeast Asia region experienced a 29% year-on-year decline in funding and deal count, with M&A activity falling to 24 deals from 35, its lowest level in seven years.

Egypt has received $3.5 billion from Qatar as part of an investment agreement to develop a residential and tourism project on its northwestern Mediterranean coast.   

The payment represents the cash portion of the deal, Mohmed El-Homosany, the spokesperson for the Egyptian cabinet, said in a statement. 

The second phase involves an “in-kind consideration” consisting of the project’s residential units, that are expected to fetch about $1.8 billion on sale, he said. 

The New Urban Communities Authority is entitled to a share equal to 15% of the project’s net profits. 

The New Urban Communities Authority and Qatari Diar Company - the real estate arm of Qatar’s sovereign wealth fund – signed an agreement in November to implement an urban tourism project in the Alam El Roum area on the northwestern coast of Egypt's Matrouh Governorate.

The $29.7 billion project spans across 4,900 acres, along a 7.2 kilometer Mediterranean waterfront, featuring residential complexes, tourism and entertainment projects, golf courses and a yacht marina.

The project will also host a service free zone, electricity distribution and water desalination and treatment plants, hospitals, schools, universities, and several government offices. 

Approximately 60% of the total land area will be allocated for residential development, 25% to roads, squares and open green spaces with 15% to service areas. 
 

Pakistan and Indonesia signed seven memoranda of understanding on Tuesday to broaden cooperation in areas including trade, higher education, halal certification and health, during Indonesian President Prabowo Subianto’s two-day visit to Islamabad.

The agreements were finalized after talks between Prime Minister Shehbaz Sharif and President Subianto, whose trip marks his first to Pakistan since taking office and coincides with the 75th anniversary of bilateral relations.

Speaking at a joint media briefing, Sharif said Pakistan was seeking a more balanced trading relationship, noting that palm oil imports currently dominate a bilateral trade volume of $4.5 billion. “More than 90% represents imports from our brotherly country, Indonesia, that is palm oil,” he said. “We have discussed how to take corrective measures to balance this trade through agri-exports from Pakistan, through exports of our IT-led initiatives, and in many other areas where we can fill this gap.”

Sharif also offered Pakistan’s support for Indonesia’s health sector: “I want to assure you that whatever is possible for us in this behalf, we will do it without any delay and with great pleasure and most willingly.”

The MoUs signed include cooperation in higher education, an Indonesian state scholarship program, SME facilitation, archival collaboration, narcotics control, halal trade and certification, and health-sector development, according to state broadcaster Radio Pakistan.

Pakistan and Kyrgyzstan have agreed to raise their bilateral trade volume to $200 million by 2027, setting a clear target to expand economic cooperation following talks in Islamabad between Prime Minister Shehbaz Sharif and President Sadyr Zhaparov.

The two leaders discussed strengthening ties across trade, energy, connectivity, and security, with both sides expressing commitment to building a more structured economic partnership. “Pakistan offers a strategic gateway to global markets through Karachi, Gwadar and Port Qasim,” Prime Minister Sharif told the visiting delegation as he encouraged Kyrgyz businesses to pursue joint ventures in sectors including trade, education and health.

President Zhaparov underscored the importance of the partnership given Kyrgyzstan’s location in the heart of Eurasia. He said the country’s membership in the Eurasian Economic Union and its GSP+ status could help provide Pakistan with broader access to European and regional markets.

The current trade volume stands at roughly*$5 million, but the two sides said they expect to scale this up significantly through improved market access, transport links and investment opportunities. The meeting also reviewed progress on the CASA-1000 electricity project, which would transmit surplus power from Central Asia to Pakistan. Kyrgyzstan has completed its section of the line, while Pakistan’s portion is under way.

Connectivity featured prominently in the discussions, including steps to operationalize the Quadrilateral Traffic in Transit Agreement (QTTA), intended to provide road access between Pakistan and Kyrgyzstan through China. Both sides highlighted the importance of transport corridors and regional infrastructure for supporting trade and supply chains.

Educational cooperation was also addressed. Around 8,500 Pakistani students currently study medicine in Kyrgyzstan, and the two governments agreed to create a joint certification mechanism for medical graduates seeking employment in either country.

Zhaparov invited Pakistani investors to explore opportunities in Kyrgyzstan’s hydropower, logistics, agriculture, tourism and halal sectors. He also noted recent developments in the country’s digital economy, including the launch of Kyrgyzstan’s national stablecoin, and signalled openness to collaboration on virtual assets.

The visit concluded with the signing of 15 agreements and MoUs spanning energy, agriculture, education, culture and tourism. One of the key outcomes was the establishment of sister-city relations between Islamabad and Bishkek.

Dubai Customs has signed a strategic memorandum of understanding with Binance to expand digital payment capabilities.

The preliminary agreement aims to develop the UAE’s domestic payment ecosystem by integrating digital assets into commercial transactions and enabling the logistics sector to benefit from digital payments, Dubai Customs said in a statement. 

The partnership will improve the efficiency of import–export operations, streamline customs procedures, and attract new investors by offering modern payment options that help expand their businesses and access new global markets.  

“With this MoU, Dubai Customs is establishing a progressive economic model capable of meeting the requirements of the digital economy, creating an innovative business environment that supports Dubai’s ambitions and global competitiveness in fintech and smart payments,” said Sultan Ahmed bin Sulayem, Chairman and CEO of DP World and Chairman of Ports, Customs and Free Zone Corporation. 

“Through this MoU, we will jointly launch innovative solutions capable of making a tangible difference in the customs sector locally and globally,” added Richard Teng, CEO of Binance. 
 

The Middle East is emerging as a critical hub for AI data centre development, benefiting from its structural and geographical merits, amid rising demand for AI infrastructure. 

The region’s strategic location offers a vantage point, placing it within a 2,000-mile radius of over three billion people, enabling it to serve Europe, Asia, Africa, and the Global South, with non-latency-sensitive AI inferencing at scale, according to a Boston Consulting Group report. 

Data centre power needs are forecasted to rise from 86 GW in 2025 to 198 GW by 2030, placing the Middle East at the forefront of supplying scalable, cost-efficient AI compute capacity. 

The Middle East’s competitive cost structures, including up to 50% lower leasing rates, low power tariffs, and advanced cooling systems, pare ownership costs. At the same time, economies such as Saudi Arabia and the UAE continue to press ahead with new data centre launches. 

“The Middle East is undergoing a pivotal transformation as it positions itself to become a global hub for AI infrastructure,” said Thibault Werlé, managing director at Boston Consulting Group.

“With strategic investments, progressive digital policies, and ambitious national visions across Qatar, the UAE, and Saudi Arabia, the region is building the foundation for scalable, next-generation AI compute.” 

Regional economies have undertaken major initiatives to bolster their efforts in reshaping the Middle East’s AI infrastructure landscape. 

Saudi Arabia has launched Humain, a Public Investment Fund company with a targeted 1.9 GW AI data centre capacity, along with partnerships with tech giants including Nvidia and AWS, to develop multi-hundred-megawatt AI campuses. 

Neighbouring UAE plans to host a 5GW AI campus in its capital under the US-UAE AI Acceleration Partnership and is importing 500,000 GPUs for regional and US partners, supported by Microsoft’s USD $15.2 billion investment in AI and cloud infrastructure. 

The Qatar Investment Authority has invested heavily in advancing the country’s AI ambitions, including a $3 billion platform with Blue Owl Capital to accelerate international expansion of AI and cloud infrastructure. Qatar’s sovereign wealth fund has also participated in Anthropic’s $13 billion funding round, aimed at meeting growing demand from enterprises.  

Regional governments must create streamlined, unified investment packages that integrate key inputs such as land, power, water, and connectivity within clear, time-bound frameworks, the report suggested.

“Expanding a diverse ecosystem of business and financing models, including hyperscalers, GPU-as-a-Service providers, equity platforms, and bond-backed investments, will be critical to enabling flexibility for market entrants,” the report added.