The UAE has decided to withdraw from its plan to operate Islamabad International Airport, which was a project under discussion since August 2025. UAE President Sheikh Mohammed bin Zayed Al Nahyan’s visit to India is now being linked to this surprise shift in priorities.
Pakistan’s leading daily, The Express Tribune reported that the UAE could not finalize a local partner and had lost interest in moving ahead. The airport deal was considered necessary for Pakistan, which is struggling with a weak economy and looking for foreign investment.
Officially, the UAE has said there was no political reason behind the decision and described it as a commercial call. The timing has drawn attention, especially amid rising tensions in the Gulf region. The development has caused concern in Islamabad, including for Prime Minister Shehbaz Sharif and Army Chief Asim Munir.
Sheikh Mohammed approved the release of around 900 Indian nationals from prisons in the UAE, calling it a goodwill gesture. At the same time, Pakistan received confirmation that Abu Dhabi was no longer interested in the Islamabad airport project.
Both leaders also strongly condemned terrorism, such as cross-border terrorism, and agreed on several outcomes that would typically take much longer to finalize.
Prime Minister Narendra Modi and the UAE President set an annual trade target of AED 734.5 billion by 2032. The two nations have also laid out a broad agenda to shore up the ties. Abu Dhabi state firm ADNOC Gas will supply 0.5 million metric tons of LNG a year to India's Hindustan Petroleum Corp for 10 years, the companies said.
The UAE will develop an international airport, smart township, and port in Gujarat’s Dholera Special Investment Region. These are direct investments, rather than credit or loan-based arrangements.
India’s IN-SPACe and the UAE Space Agency will jointly establish a satellite factory and launch complex. Agreements were also signed in nuclear energy and Artificial Intelligence. It highlights a focus on future-ready sectors.
Relations between the United Arab Emirates and Saudi Arabia have cooled in recent years, over differences related to Yemen. Pakistan has moved closer to Riyadh, signing a defence agreement in September 2025.
At the same time, ties between India and the UAE have continued to grow stronger. The contrast between India’s rising partnership with Abu Dhabi and Pakistan’s weakening ties has become increasingly clear over the past few months.
While no official link has been stated, the timing has sent a clear message across the region. For Pakistan, the developments highlight how fast regional equations are changing.