Qatar, a close US ally, has called for more dialogue to settle the standoff over a 2015 nuclear deal between Iran and major powers.
President Biden says he will notify US Congress about the designation that he says reflects "the importance of our relationship" with the Gulf country.
Press Secretary Jen Psaki said both leaders would be discussing "the stability of global energy supplies."
Visiting Qatar Emir Tamim and US President Biden will discuss a range of issues, White House says, amid concerns about Moscow's gas supplies to Europe in the event of an invasion of Ukraine.
The memorandum of understanding was signed on the second leg of US Secretary of State Rex Tillerson's visit to the region in a bid to break the deadlock between Qatar and a Saudi-led block of four nations.
UAE says it will not back down from the dispute if Qatar declines to cooperate on the demands. Meanwhile, Doha asks International Civil Aviation Organisation to help reopen Gulf airspace closed to its flights.
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