UAE ‘Lost Interest’ In Pakistan? Abu Dhabi Exits Islamabad Airport Deal After Nahyan’s India Visit

Last Updated:January 25, 2026, 20:19 IST

The collapse of the Pakistan deal comes at a time when relations between the UAE and India are reaching new heights.

Prime Minister Narendra Modi with UAE President Mohamed bin Zayed Al Nahyan. (PTI file photo)

UAE President Sheikh Mohammed bin Zayed Al Nahyan’s sudden three-hour visit to India now appears to be more than a routine diplomatic courtesy. The brief meeting has rattled the geopolitical landscape of South Asia. After leaving India, he made a strong gesture of goodwill by deciding to release 900 Indians from prison. 

At the same time, Pakistan has faced a major indirect setback, with the UAE cancelling its deal to operate Islamabad Airport. Pakistan’s news outlet The Express Tribune confirmed the development, saying the UAE has lost interest in the process. This move has caused serious concern for Pakistan Prime Minister Shehbaz Sharif and Army Chief Asim Munir.

UAE deal with Pakistan cancelled

Amid Pakistan’s worsening economic situation, the UAE had agreed in August 2025 to take over the operation of Islamabad Airport. The UAE has now withdrawn from the deal and has not named any local partner either. Officially, the decision has been described as a “loss of interest". 

However, the timing and circumstances suggest a different story. The report does not directly link political reasons to the cancellation. Still, the decision has come at a time when tensions between the UAE and Saudi Arabia are beginning to affect South Asia.

Saudi ties and rising tensions

Pakistan has entered into a defence deal with Saudi Arabia and wants to include Turkey to form what is being described as an “Islamic NATO". This move has been enough to upset the UAE. The cancellation of the airport deal has come as these regional tensions are becoming more visible.

Growing UAE-India ties

The collapse of the Pakistan deal comes at a time when relations between the UAE and India are reaching new heights. On January 19, Sheikh Mohammed bin Zayed paid a surprise visit to Delhi. The visit lasted only three hours, but its impact is being seen as long-term. Pakistan has long-standing economic ties with both Gulf nations, but it has traditionally leaned more towards Saudi Arabia. In September 2025, Pakistan and Saudi Arabia signed a mutual defence agreement, with discussions now under way about Turkey joining it.

Changing relationship with Pakistan

Pakistan and the UAE once shared very strong ties, especially in the aviation sector. In the 1980s, Pakistan played a key role in setting up Emirates Airlines. It provided technical support and staff in the early days, and Emirates’ first flight was from Dubai to Karachi. Over time, Pakistan’s own airline and aviation system weakened. Frequent accidents, problems with pilots’ licences and outdated technology have become common concerns. In such conditions, fixing the system is not easy for any investor.

The UAE has experience working in difficult environments, and its company operates several airports in Afghanistan. Even so, the decision to pull back from Pakistan shows clearly that trust between the two sides is no longer what it once was.

News world UAE ‘Lost Interest’ In Pakistan? Abu Dhabi Exits Islamabad Airport Deal After Nahyan’s India Visit

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