Has UAE abandoned Pakistan airport deal after president's India visit?
What's the story
The United Arab Emirates (UAE) has reportedly canceled its plan to operate Islamabad International Airport. The decision comes soon after UAE President Sheikh Mohammed bin Zayed Al Nahyan's visit to India. The deal, which was under consideration since August 2025, fell through as the UAE lost interest and failed to appoint a local partner for outsourcing operations, The Express Tribune reported.
Meeting
UAE president and Modi meeting
While the report did not attribute political motivations to the collapsed deal, it surfaced after a recent visit by UAE President Zayed to India. After the visit, Abu Dhabi announced plans to release 900 Indian prisoners as a goodwill gesture. The nations also took steps toward a Strategic Defense Partnership during talks between Prime Minister Narendra Modi and Zayed, with a Letter of Intent signed to pave the way for a Framework Agreement on Defense Cooperation.
Privatization plans
Pakistan's privatization program includes Islamabad airport
The Pakistan government this week included Islamabad International Airport in its active privatization program. This is part of a larger strategy to outsource operations at the country's major airports, including Karachi's Jinnah International Airport and Lahore's Allama Iqbal International Airport. The aim is to improve efficiency, upgrade infrastructure, enhance passenger services, and maximize revenue generation through management contracts or long-term commercial concessions.
Diplomatic strains
UAE's withdrawal from Pakistan airport deal amid tensions
The Privatisation Commission of Pakistan also rejected reports of canceling a proposed agreement with the UAE. It clarified that no lease or concession agreement was ever signed for any of the three airports, including Islamabad International Airport. Officials said the decision to move toward open and competitive bidding in November 2025 was purely economic and procedural, without any political implications.
Bidding process
Competitive bidding process for Pakistan's airports
In November of last year, the government opted to switch from a government-to-government framework to an open and competitive bidding process for all three airports. The new approach to privatization will allow all eligible local and foreign investors to participate in the bidding process. "This inclusive process is designed to deliver the best value for Pakistan and reinforce long-standing partnerships with international stakeholders," the Pakistani government said.