Relationships between Pakistan and the United Arab Emirates (UAE) are deteriorating after Pakistan's defense agreement with Saudi Arabia. Pakistan used its Saudi ties to exert pressure on other Gulf countries, but UAE struck back by withdrawing from a significant agreement. The deal, valued at 12.36 billion Indian Rupees, involved handing over the management of Islamabad's biggest airport to UAE.
UAE has withdrawn from the airport management project amidst Pakistan's ongoing economic crisis, showing initial interest to take over operations by August 2025 but backing out by January 2026.
The period between August 2025 and January 2026 witnessed significant geopolitical shifts. Recently, UAE's President Sheikh Mohammed bin Zayed Al Nahyan visited India for a diplomatically significant three-hour trip on January 19, 2026, which was announced a day earlier.
In the Gulf region, Saudi Arabia and UAE clashed over Yemen, leading to military conflict, with Saudi forces attacking UAE troops and forcing their exit. Meanwhile, Saudi Arabia and Pakistan forged military agreements.
UAE Sends a Deliberate Message to Pakistan
According to Pakistan's Tribune Dawn, Abu Dhabi's diminishing interest prompted the government to halt plans to outsource Islamabad International Airport's management to UAE.
Pakistan claims delays in UAE nominating an organization for the airport's outsourcing led to the current impasse.
Source: aajtak
After the successful privatization of Pakistan International Airlines (PIA), the government sought to privatize Islamabad International Airport, initially negotiating with UAE. However, fluctuating relations with Saudi Arabia shifted UAE's stance.
The Tribune reports Pakistani officials sent a letter seeking a definitive response from UAE, which replied it couldn't confirm any nominated entity yet.
Pakistan aims to privatize the airport following PIA's successful privatization, as UAE expressed no interest in continuing the process.
Why Are UAE and Pakistan at Odds?
Pakistan's geopolitics are clashing with UAE's interests, aspiring to lead Arab regions under Saudi protection. Plans like the defense pact with Saudi Arabia irritate UAE amid its competition with Saudi Arabia. Conversely, UAE values friendship with India, benefiting from mutual respect, trust, and India's vast market.
Pakistan's ideological rigidity and domestic politics clash with UAE's pragmatic, economic focus, increasing distrust.
The Financial Blow for Pakistan
The outsourcing deal was valued at around $135 million (12.35 billion INR), with the successful bidder expected to pay approximately $100 million to the Civil Aviation Authority.
Pakistani President Visits UAE
Pakistan's President Asif Ali Zardari is set for an official four-day tour to UAE starting January 26. The Pakistani Foreign Ministry indicates high-level meetings will focus on reviewing bilateral relations, emphasizing trade, economy, and people-to-people ties.
The tour will test Pakistan's diplomatic strategies and outcomes.