UAE withdraws from Pakistan airport deal following President Al Nahyan's surprise India visit

The United Arab Emirates has withdrawn from a proposed agreement to operate Islamabad International Airport, dealing a setback to Pakistan’s efforts to attract foreign partners in key infrastructure projects, shortly after UAE President Mohammed bin Zayed Al Nahyan’s visit to India.

According to Pakistan’s The Express Tribune, Abu Dhabi has abandoned plans, under discussion since August 2025, to take over operations of the capital’s main airport. The report said the UAE lost interest in the project and failed to nominate a local partner to manage the outsourcing arrangement.

While the Pakistani publication did not link the collapse of the deal to political developments, the timing has attracted attention amid evolving geopolitical equations in the Gulf and South Asia. Relations between the UAE and Saudi Arabia, once close allies, have become strained, with both countries publicly supporting rival factions in Yemen.

In recent months, Pakistan has moved to deepen defence cooperation with Saudi Arabia and has expressed interest in forming what some officials describe as an “Islamic NATO” alongside Riyadh and Turkey. Meanwhile, the UAE has continued to expand its strategic and defence engagement with India, a trend that has accelerated in recent years.

Saudi Arabia remains heavily dependent on Pakistan’s military expertise, while Abu Dhabi has signed new defence agreements with New Delhi, signalling a shift in its regional priorities.

Pak-UAE ties face challenges

For nearly four decades, the UAE was among Pakistan’s leading trading partners and a major source of remittances, supported by a large Pakistani workforce in the Emirates. Cooperation between the two countries extended to defence, energy and investment.

However, bilateral relations have increasingly been affected by security concerns, regulatory disputes and ageing infrastructure in Pakistan. Recent assessments have highlighted chronic mismanagement and political interference in state-owned enterprises, resulting in mounting losses and privatisation at discounted valuations. Pakistan last year sold Pakistan International Airlines as part of this process.

Against this background, the UAE’s decision to withdraw from the Islamabad airport project is seen as significant. Given Abu Dhabi’s experience in managing airports in challenging environments, including Afghanistan, the move has been viewed as reflecting declining confidence rather than technical limitations.

India-UAE partnership gathers momentum

In contrast, relations between India and the UAE have continued to strengthen. Following Sheikh Mohammed bin Zayed’s visit to New Delhi last week, Abu Dhabi approved the release of 900 Indian prisoners, a move widely regarded as a major goodwill gesture.

During the visit, Prime Minister Narendra Modi and the UAE President reviewed bilateral ties and agreed that the Comprehensive Strategic Partnership had become broader and more ambitious.

A joint statement issued after the meeting outlined a long-term roadmap for geopolitical and geo-economic cooperation. One of the key outcomes was an agreement to work towards a full-fledged Strategic Defence Partnership.

A Letter of Intent was also signed, laying the foundation for a future Framework Agreement on Defence Cooperation.