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Setback for Pak as UAE exits airport deal after Mohammed bin’s India visit
Setback for Pakistan as UAE exits airport deal after Mohammed bin Zayed’s surprise India visit
UAE shelves Pakistan airport project as India-UAE defence and strategic ties deepen; Pakistan faces setback amid shifting Gulf alliances.
The United Arab Emirates' decision to step away from a proposed agreement to operate Islamabad International Airport has delivered a quiet setback to Pakistan, coming shortly after the UAE President
Mohammed bin Zayed Al Nahyan's surprise visit to India.
According to Pakistan's The Express Tribune, Abu Dhabi has dropped plans that had been 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 attribute the collapse of the deal to political factors, the timing has drawn attention amid shifting alignments in the Gulf and South Asia. Relations between the UAE and Saudi Arabia, once close allies, have become strained, with both countries publicly backing rival factions in Yemen.
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Pakistan, for its part, has recently strengthened defence ties with Saudi Arabia and has expressed interest in forming what some officials describe as an “Islamic NATO” alongside Riyadh and Turkey. At the same time, the UAE has moved to deepen its strategic and defence engagement with India, a trend that has gathered pace in recent years.
Saudi Arabia continues to rely heavily on Pakistan's military expertise, while Abu Dhabi has signed new defence agreements with New Delhi, signalling a recalibration of its regional priorities.
For nearly four decades, the UAE was among Pakistan's most important trading partners and a major source of remittances, with a large Pakistani workforce employed across the Emirates. Cooperation between the two countries extended to defence, energy and investment. However, bilateral ties have increasingly been affected by concerns over security, regulatory disputes and ageing infrastructure in Pakistan.
Recent assessments have pointed to chronic mismanagement and political interference in Pakistan's state-owned enterprises, leading to mounting losses and eventual privatisation at heavily discounted valuations. Islamabad last year sold off Pakistan International Airlines as part of this broader push.
Against this backdrop, the UAE's decision to walk away from Islamabad Airport is notable. Given Abu Dhabi's track record in running airports in difficult environments, including Afghanistan, the move has been widely seen as reflecting a decline in confidence rather than a lack of technical capacity.
In sharp contrast, 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 viewed as a significant goodwill gesture.
During talks, Prime Minister Narendra Modi and the UAE President reviewed the entire spectrum of bilateral relations and agreed that the Comprehensive Strategic Partnership had not only matured but was becoming broader and more ambitious.
The joint statement issued after the meeting outlined a long-term vision for geopolitical and geo-economic cooperation. Among the most consequential outcomes was an agreement to move towards a full-fledged Strategic Defence Partnership. A Letter of Intent was signed during the visit, laying the groundwork for a future Framework Agreement on Defence Cooperation.
Source: ZeeNews
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