The UAE, a rival of Saudi Arabia in the Gulf, has dealt Pakistan a blow worth billions of rupees. (Image X @Saudi_Gazette)
Islamabad: Pakistan, which boasts about its defense agreement with Saudi Arabia, is seeing its relations with the United Arab Emirates (UAE) steadily deteriorate. Pakistan had been using its relationship with Saudi Arabia to put pressure on other Gulf countries. However, the UAE, a rival of Saudi Arabia in the Gulf, has dealt Pakistan a blow worth billions of rupees.
In Indian currency, this project was worth 12.36 billion rupees. Struggling with economic difficulties, Pakistan wanted to earn billions of rupees by handing over the management and operation of its largest airport, Islamabad Airport, to the UAE.
But the UAE has directly withdrawn from a project related to the management of Pakistan's Islamabad Airport. In August 2025, amidst Pakistan's ongoing economic crisis, the UAE had agreed to take over the operation of this airport. However, in January 2026, the UAE backed out of this proposal.
In fact, much happened between August 2025 and January 2026 regarding the relations between the UAE, Pakistan, and India. Just a few days ago, UAE President Sheikh Mohammed bin Zayed Al Nahyan visited India for a three-hour trip. This visit was widely discussed in diplomatic circles regarding India-UAE relations. Nahyan came to India on January 19th for only three hours. His visit was announced just one day earlier, on January 18th.
Meanwhile, there was also a conflict between Saudi Arabia and the UAE over Yemen in the Gulf. The situation deteriorated to such an extent that Saudi Arabia even attacked UAE troops, and the UAE had to withdraw from Yemen. During this time, a military agreement was also signed between Saudi Arabia and Pakistan. The UAE was sending a message to Pakistan through this delay.
According to the Pakistani newspaper Tribune Dawn, after Abu Dhabi lost interest in this project, the government has halted the plan to outsource the management and operation of Islamabad International Airport to the United Arab Emirates (UAE).
Pakistan says that this impasse between the two countries arose after repeated delays by the UAE in nominating an organization for the outsourcing of Islamabad International Airport. UAE President Sheikh Mohammed bin Zayed Al Nahyan and Pakistani Prime Minister Shehbaz Sharif.
Following the recent successful privatization of Pakistan International Airlines (PIA), the Pakistani government has now initiated the process of handing over Islamabad International Airport to private companies.
However, before this, Pakistan wanted to discuss the matter with the UAE at the government level. The UAE initially showed interest in the project, but as Pakistan's relations with Saudi Arabia deepened, the UAE's stance also changed.
Tribune Dawn.com reported that Pakistani official sources said the Pakistani side had sent a final letter seeking a clear response from the UAE. In response, the UAE stated that it was still unable to confirm a nominated entity.
The source said that the UAE is no longer interested in continuing the process. Consequently, the government, following the example of the highly successful privatization of Pakistan International Airlines, approved the proposal to include Islamabad International Airport in the active privatization list.
Pakistan's geopolitical policies are clashing with the UAE's interests. Pakistan wants to become the leader of Muslim countries in the region by allegedly providing a security umbrella to Saudi Arabia in the Arab world. For example, Pakistan's defense agreement with Saudi Arabia and plans like the 'Islamic NATO' are angering the UAE, which is a victim of the Saudi-UAE rivalry. The UAE, itself a major power in the Gulf, is certainly unable to accept this. In contrast, the UAE enjoys friendly relations with India, based on mutual respect, trust, and access to India's vast market.
Pakistan's ideological rigidity and domestic political pressures do not align with the UAE's pragmatic, economically focused model, leading to increased distrust.
The estimated value of the Islamabad Airport outsourcing deal was approximately $135 million (12.35 billion Pakistani rupees). The successful bidder would have had to pay approximately $100 million to the Civil Aviation Authority. Pakistani President to visit UAE
Meanwhile, Pakistani President Asif Ali Zardari is embarking on a four-day official visit to the United Arab Emirates on Monday. According to a statement from the Pakistani Foreign Ministry, the President, accompanied by a high-level delegation, will be on the visit from January 26 to 29.
According to the Pakistani government, "During the visit, the President will hold high-level meetings with the UAE leadership to review all aspects of bilateral relations, particularly in the areas of trade and economic cooperation and people-to-people ties." It remains to be seen what strategies Pakistan will employ during this visit.
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