UAE Drops Islamabad Airport Plan After Delhi Stopover, Signalling Shift in South Asia Ties
New Delhi | January 26, 2026 The United Arab Emirates has reportedly withdrawn its proposal to operate Islamabad International Airport, dealing a blow to Pakistan’s plans for foreign investment and management in its aviation sector. The deal, which had been under discussion since August 2025, was reportedly abandoned after UAE officials failed to identify a local partner to handle airport operations. The news was first reported by Pakistani daily The Express Tribune, which said the plan appears to have been quietly dropped. The timing of this development has raised questions about its wider political implications, especially after UAE President Sheikh Mohamed bin Zayed Al Nahyan’s three-hour stopover in New Delhi. The visit made headlines and has been seen as a sign of shifting priorities in the region. While Pakistani media reports did not directly link the airport decision to politics, the move comes amid growing strategic tensions in the Gulf and evolving alliances in South Asia. One key factor may be the changing dynamics between the UAE and Saudi Arabia. The two Gulf powers, once close allies, are now in an increasingly public disagreement over support for rival groups in Yemen. This rift has influenced regional alignments, and Pakistan’s closer defence ties with Saudi Arabia such as the 2025 defence agreement that treats an attack on one country as an attack on both may have further complicated the UAE’s engagement with Islamabad. Meanwhile, the UAE has strengthened its ties with India. During the recent Delhi visit, the UAE President and Indian Prime Minister Narendra Modi signed a Letter of Intent to move towards a Strategic Defence Partnership. The visit also saw the UAE approve the release of 900 Indian prisoners, a gesture seen as a strong sign of goodwill. The joint statement issued after the meeting highlighted the deepening cooperation between the two nations, and indicated that their partnership is entering a more ambitious and strategic phase. This shift highlights how geopolitical choices are reshaping alliances and investment decisions across South Asia. UAE Drops Islamabad Airport Deal After Delhi Visit, Pakistan Faces Another Setback In a major diplomatic development, the United Arab Emirates (UAE) has reportedly dropped its proposal to operate Islamabad International Airport. The plan, which had been discussed since August 2025, was suddenly abandoned after the UAE failed to find a local partner to manage the airport operations. The decision was confirmed by Pakistani daily The Express Tribune, citing sources close to the matter. The timing of this decision has raised many questions, especially after UAE President Sheikh Mohamed bin Zayed Al Nahyan’s brief three-hour stopover in New Delhi. Many analysts believe the visit had a ripple effect across South Asia, indirectly affecting Pakistan’s plans. Although the Pakistani report did not directly link politics to the collapse of the deal, the timing cannot be ignored. Another reason for the shift could be the growing tension between the UAE and Saudi Arabia. The two Gulf nations, once close allies, are now involved in a public standoff over support for rival groups in Yemen. Pakistan, meanwhile, has strengthened ties with Saudi Arabia, including a defence agreement signed in September 2025. At the same time, the UAE has moved closer to India by signing new defence agreements and boosting strategic cooperation. The UAE’s growing relationship with India is clearly visible. During the Delhi visit, Prime Minister Narendra Modi and the UAE President signed a Letter of Intent to move forward with a “Strategic Defence Partnership.” The UAE also approved the release of 900 Indian prisoners, seen as a strong gesture of goodwill. The joint statement from the meeting highlighted that the India-UAE partnership is entering a more ambitious phase, making the future of Pakistan-UAE ties uncertain.
