Setback for Pakistan as UAE exits airport deal after Mohammed bin Zayed’s surprise India visit | India News

The United Arab Emirates’ decision to withdraw from the proposed agreement to operate the Islamabad International Airport has dealt a quiet blow to Pakistan, shortly after UAE President Sheikh Mohammed bin Zayed Al Nahyan’s surprise visit to India.

Abu Dhabi has abandoned plans that have been discussed since August 2025 to take over operations of the capital’s main airport, according to Pakistan’s The Express Tribune newspaper. The report stated that 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 attribute the collapse of the agreement to political factors, its timing drew attention due to changing alliances in the Gulf and South Asia. Relations between the UAE and Saudi Arabia, once close allies, have become strained, with both countries openly supporting rival groups in Yemen.

Pakistan, for its part, recently strengthened defense ties with Saudi Arabia and has expressed interest in forming what some officials describe as an “Islamic NATO” with Riyadh and Türkiye. At the same time, the UAE has moved to deepen its strategic and defense relations with India, a trend that has accelerated in recent years.

While Saudi Arabia continues to rely heavily on Pakistan’s military expertise, Abu Dhabi has signaled a recalibration of its regional priorities by signing new defense agreements with New Delhi.

Pakistan-UAE relations are tense

For nearly four decades, the UAE has been among Pakistan’s most important trading partners and a major source of remittances, with a large Pakistani workforce employed in the Emirates. Cooperation between the two countries has extended to defence, energy and investment. But bilateral relations are increasingly affected by security concerns, regulatory disputes and aging infrastructure in Pakistan.

Recent assessments have pointed to chronic mismanagement and political interference in Pakistan’s state-owned enterprises; This led to mounting losses and eventually privatization at greatly discounted valuations. Islamabad sold Pakistan International Airlines last year as part of this broader move.

In this context, the UAE’s decision to move away from Islamabad Airport is noteworthy. This move is widely viewed as reflecting a decline in confidence rather than a lack of technical capacity, given Abu Dhabi’s track record of operating airports in challenging environments, including Afghanistan.

Deepening India-UAE partnership

On the contrary, ties between India and the UAE appear to be entering a new phase. Following Sheikh Mohammed bin Zayed’s visit to New Delhi last week, Abu Dhabi approved the release of 900 Indian prisoners, a step widely seen as a significant goodwill gesture.

During the talks, Prime Minister Narendra Modi and the UAE President reviewed the entire spectrum of bilateral relations and agreed that the Comprehensive Strategic Partnership has not only matured but also become broader and more ambitious.

In the joint statement published after the meeting, a long-term vision for geopolitical and geoeconomic cooperation was put forward. One of the most important results was an agreement to move towards a full-fledged Strategic Defense Partnership. During the visit, a Letter of Intent was signed, which formed the basis of the future Defense Cooperation Framework Agreement.