UAE Backs Out Of Pak Airport Deal

Islamabad, Jan 26: United Arab Emirates (UAE) President Sheikh Mohammed bin Zayed Al Nahyan’s surprise India trip seemed to have a ripple effect on South Asian geopolitical equations, bringing an indirect setback for Pakistan. Soon after Sheikh Nahyan’s three-hour visit, Abu Dhabi scrapped its plan to operate Islamabad International Airport– an agreement in talks since August 2025.

The development was confirmed by Pakistani publication The Express Tribune, which reported that the plan was shelved after the UAE lost interest in the project and failed to name a local partner to outsource operations.

The Pakistani media report did not link the collapse of the deal to any political motivations, but it comes amid a growing rift between the UAE and Saudi Arabia. Once the closest of Gulf allies, Riyadh and Abu Dhabi are locked in an unusual public confrontation over support to rival groups in Yemen.

While Islamabad inked a defence deal with Riyadh and wants to form what is being described as an “Islamic NATO” with Saudi Arabia and Turkey, the UAE has signed new defence deals with India.

Saudi Arabia is also leaning on Pakistan’s military know-how, while the UAE has signed new defence deals with India.

Pak-UAE Ties

Nearly 4 decades ago, the UAE had remained one of Pakistan’s largest trading partners and a key source of remittances, with thousands of Pakistanis working in various sectors. Both countries had collaborated on defence, energy, and investment projects. But, over the years, the relations have been plagued by safety concerns, licensing controversies and ageing infrastructure in Pakistan.

A recent report said that poor governance and mismanagement due to political interference are leading to huge losses in Pakistan’s state-owned enterprises, after which they are put up for distress sale at throwaway prices. Islamabad last year privatised its Pakistan International Airlines (PIA).

Despite the UAE’s experience in managing airports in challenging environments, including Afghanistan, its move to step away from Islamabad Airport underscores a clear erosion of confidence.

Growing India-UAE Ties

In contrast, after his Delhi visit last week, the UAE leader has approved the release of 900 Indian prisoners, a move widely interpreted as a significant gesture of goodwill towards New Delhi. In their talks during the UAE leader’s visit, Prime Minister Modi and President Mohamed bin Zayed also reviewed the full spectrum of bilateral cooperation and agreed that the India-UAE Comprehensive Strategic Partnership has not only matured but is now entering a more ambitious and multidimensional phase.

The joint statement released after the meeting read like a blueprint for a long-term geopolitical and geo-economic alignment. Perhaps the most politically consequential outcome was the decision to move towards a full-fledged Strategic Defence Partnership. A Letter of Intent was signed during the visit, paving the way for a Framework Agreement on Defence Cooperation.