UAE Backs Away from Pakistan Airport Deal Following Surprise Trip to India
UAE cancels Islamabad airport deal after president’s surprise India visit.
Abu Dhabi has abruptly withdrawn from a deal to operate Islamabad International Airport, a project in negotiation since August 2025, Pakistani media reported. The move follows UAE President Sheikh Mohammed bin Zayed Al Nahyan’s unexpected three-hour visit to India, where he met Prime Minister Narendra Modi to discuss expanded bilateral ties. The UAE reportedly cited an inability to identify a local partner as the reason for shelving the project.
While Pakistani outlets did not explicitly link the cancellation to political considerations, analysts note the development reflects shifting Gulf dynamics. Once closely allied with Saudi Arabia, the UAE has increasingly pursued independent defense and economic deals, including recent agreements with India, contrasting with Pakistan’s growing defense collaboration with Riyadh.
The UAE and Pakistan share nearly four decades of strong economic and labor ties, with the Gulf nation historically serving as a top source of remittances and trade. However, governance concerns and political interference in Pakistan’s state enterprises, including the recent privatization of Pakistan International Airlines, have eroded investor confidence, making large infrastructure projects riskier for international partners.
Also Read: Seattle Hosts Invest India Forum as Washington's Largest Trade Mission Heads to India
In contrast, Sheikh Nahyan’s visit to India has been marked by strategic gestures, including approval for the release of 900 Indian prisoners. The trip also reinforced the India-UAE Comprehensive Strategic Partnership, with leaders agreeing to expand collaboration across defense, trade, and technology. A Letter of Intent on Defense Cooperation was signed, signaling the move toward a full-fledged Strategic Defense Partnership.
Observers see the UAE’s withdrawal from Pakistan as a clear indication of confidence shifting toward India, highlighting the increasingly complex interplay of geopolitics in South Asia and the Gulf. Pakistan’s inability to secure the airport deal underscores challenges in governance and international investment climate, while India-UAE relations continue to deepen.
