In a last-minute setback for Pakistan, United Arab Emirates (UAE) has reportedly abandoned its proposal to operate Islamabad International Airport – an arrangement that had been under discussion since August 2025.
This comes after Sheikh Nahyan’s three-hour stopover in New Delhi, indicating a ripple effect the visit, that made headlines, possibly triggered across South Asia’s geopolitical landscape, indirectly disadvantaging Pakistan.
The decision was confirmed by Pakistani daily The Express Tribune, which cited sources as saying that the plan appeared to have been dropped as UAE did not identify a local partner to whom operations could be outsourced despite showing initial interest.
Deteriorating UAE-Saudi ties have a role?
Although the Pakistani media report did not explicitly attribute the collapse of the deal to political reasons, the timing coincides with widening strains between the UAE and Saudi Arabia. Once among the closest Gulf allies, Riyadh and Abu Dhabi are now engaged in an unusually public standoff over backing rival factions in Yemen.
At a time when Islamabad has signed a defence agreement with Riyadh and is seeking to establish what has been described in reports as an “Islamic NATO” alongside Saudi Arabia and Turkey, the UAE has moved in a different direction by concluding new defence agreements with India.
In September 2025, Saudi Arabia signed the defence agreement with Pakistan which considers an attack on one as an aggression against both.
Meanwhile, Indian Prime Minister Narendra Modi and UAE President earlier this month welcomed the signing of Letter of Intent towards the conclusion of a Strategic Defence Partnership during the latter’s New Delhi visit.
Saudi Arabia is increasingly relying on Pakistan’s military expertise, while the UAE has signed new defence deals with India.
Pak-UAE ties
Nearly four decades ago, the UAE was among Pakistan’s largest trading partners and a major source of remittances, with thousands of Pakistani workers employed across multiple sectors. The two countries also cooperated in defence, energy, and investment initiatives. Over time, however, the relationship has been strained by safety issues, licensing disputes, and Pakistan’s ageing infrastructure.
A recent report noted that weak governance and mismanagement stemming from political interference have resulted in heavy losses at Pakistan’s state-owned enterprises, which are then offered for distress sale at throwaway prices. Islamabad last year privatised Pakistan International Airlines (PIA).
Despite the UAE’s proven capability in managing airports in difficult environments, including Afghanistan, its decision to withdraw from the Islamabad Airport project highlights a significant loss of confidence.
Growing India-UAE ties
By contrast to the above, following his visit to Delhi last week, the UAE leader approved the release of 900 Indian prisoners-an action widely seen as a strong gesture of goodwill towards New Delhi.
During the visit, Prime Minister Modi and President Mohamed bin Zayed reviewed the entire range of bilateral cooperation and agreed that the India-UAE Comprehensive Strategic Partnership has not only matured but is now moving into a more ambitious and multidimensional phase.
The joint statement issued after the meeting resembled a roadmap for long-term geopolitical and geo-economic alignment. Arguably the most politically significant outcome was the decision to advance towards a full-fledged Strategic Defence Partnership.
