UAE Pulls Back From Islamabad Airport Deal After Nahyan's India Visit

The move follows strained UAE-Pakistan relations due to governance issues and closer Pakistani ties with Saudi Arabia, while the UAE strengthens alliances with India, reflecting a regional realignment.

Prime Minister Narendra Modi with UAE President Sheikh Mohamed bin Zayed Al Nahyan during a meeting, at PMs residence in New Delhi.

Source : PTI

The surprise visit of United Arab Emirates President Sheikh Mohammed bin Zayed Al Nahyan to India appears to have had significant implications for South Asian geopolitics, indirectly affecting Pakistan.

Shortly after UAE President Sheikh Mohammed bin Zayed Al Nahyan’s sudden three-hour visit to India, Abu Dhabi decided to abandon plans to operate Islamabad International Airport, a deal that had been under discussion since August 2025. After leaving India, Nahyan also made a gesture of goodwill by deciding to release 900 Indians from prison. 

Pakistani media outlet The Express Tribune reported that the airport project was scrapped after the UAE lost interest and was unable to identify a local partner to manage operations. While the report did not cite political reasons for the withdrawal, the move comes amid a widening rift between the UAE and Saudi Arabia.

Once close Gulf allies, Riyadh and Abu Dhabi are now engaged in a rare public confrontation over support for rival factions in Yemen. Pakistan, meanwhile, has strengthened its defence ties with Saudi Arabia and is exploring an “Islamic NATO” with Saudi Arabia and Turkey. The UAE, on the other hand, has signed new defence agreements with India, signaling a shift in regional alliances.

About four decades ago, the UAE was one of Pakistan’s largest trading partners and a major source of remittances, employing thousands of Pakistani workers. Both countries collaborated extensively in defence, energy, and investment projects. However, bilateral relations have faced growing challenges over safety issues, licensing disputes, and outdated infrastructure in Pakistan.

Analysts note that poor governance and political interference have led to mismanagement and significant losses in Pakistan’s state-owned enterprises, many of which are subsequently sold at undervalued prices.

Last year, Pakistan privatised its national carrier, Pakistan International Airlines (PIA). Despite the UAE’s proven experience managing airports in complex environments, including Afghanistan, its withdrawal from Islamabad Airport reflects a waning confidence in Pakistan’s administrative and operational capabilities.