India-UAE Relations: After the recent visit of United Arab Emirates (UAE) President Sheikh Mohammed bin Zayed Al Nahyan to India, its diplomatic effects are now clearly visible. The historic defense agreement signed between India and UAE during this visit is being considered a major development in regional politics.

In this series, UAE has given a big blow to Pakistan and distanced itself from the plan to operate Islamabad International Airport. This agreement was signed in August 2025, but now it has been put on hold for now.

UAE withdraws from Islamabad airport project

According to the report of Pakistani newspaper The Express Tribune, UAE has stepped back from this airport project. Neither the UAE selected any local partner nor took the process forward. Due to this, the deal related to the operation of Islamabad International Airport has stopped at the moment. This decision has come at a time when relations between UAE and Saudi Arabia are increasing and Pakistan seems to be getting closer to Saudi Arabia.

Why did UAE distance itself from Pakistan?

Till about four decades ago, UAE was among Pakistan’s biggest trading partners. Remittances coming from millions of Pakistani citizens working in UAE have been considered the backbone of Pakistan’s economy. Apart from this, both the countries also worked together in areas like defence, energy and investment.
However, over time, UAE’s confidence weakened due to security concerns, license disputes and Pakistan’s policies. Recent reports have revealed poor administration, political interference and huge losses being incurred by government undertakings. This was the reason why Pakistan had to sell many government institutions to private hands at cheap prices. Last year, the Shahbaz Sharif government also privatized Pakistan International Airlines (PIA). In these circumstances, it became difficult for UAE to maintain trust in Pakistan.

India-UAE relations further strengthened

In contrast to the distance from Pakistan, after the India tour, there has been a new strength in the relations between UAE and India. UAE approved the release of 900 Indian prisoners, which is being considered a major goodwill step towards India. During his visit to India, Prime Minister Narendra Modi and President Sheikh Mohammed bin Zayed Al Nahyan reviewed all aspects of bilateral cooperation. Both countries agreed on many important partnerships in areas like trade, investment, energy and defence.

Target of $200 billion trade by 2032

Prime Minister Narendra Modi and President Nahyan have set a target of increasing the annual trade between India and UAE to US $ 200 billion by 2032. Along with this, both the countries have also presented the outline of a strategic defense partnership, which is considered very important from the point of view of regional security and global balance.