UAE pulls back from Pakistan airport deal. Here's what reports are saying

Pakistan has suffered a setback after the United Arab Emirates reportedly stepped away from talks to operate Islamabad International Airport, discussions that had been ongoing since August 2025. The development surfaced shortly after Sheikh Nahyan’s brief three-hour visit to New Delhi. According to Pakistan’s The Express Tribune, sources said that the proposal stalled because the UAE was unable to secure a suitable local partner to manage airport operations, despite early enthusiasm for the project.

While the report stopped short of assigning political motives, the timing aligns with a period of visible strain between Abu Dhabi and Riyadh. Once tightly aligned, Saudi Arabia and the UAE are now openly backing opposing factions in Yemen, marking a rare public rift between the two Gulf powers. This shift comes as Pakistan has moved closer to Saudi Arabia, signing a defence pact in September 2025 that treats an attack on either country as an attack on both.

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In contrast, the UAE has recently deepened its strategic engagement with India. During the UAE president’s visit to New Delhi earlier this month, both sides endorsed a Letter of Intent aimed at establishing a Strategic Defence Partnership, signaling a significant upgrade in military cooperation. As Saudi Arabia increasingly leans on Pakistan’s defence expertise, Abu Dhabi appears to be recalibrating its priorities toward India through new security agreements and political gestures. Historically, the UAE was one of Pakistan’s key economic partners, employing large numbers of Pakistani workers and maintaining strong ties in trade, defence, and energy.

Over time, however, the relationship has been weighed down by concerns over safety standards, regulatory disputes, and Pakistan’s ageing infrastructure. Experts have also pointed to weak governance and political interference as factors behind mounting losses at Pakistan’s state-owned enterprises, many of which have been pushed toward privatisation. Pakistan International Airlines was sold off last year under this pressure.

India-UAE relations

Meanwhile, India-UAE relations continue to gain momentum. Following the recent New Delhi visit, the UAE president approved the release of 900 Indian prisoners, a move widely interpreted as a goodwill gesture. The joint statement issued after the talks underscored the breadth of cooperation between the two countries and outlined a long-term vision for strategic and economic alignment.