UAE Pulls Back from Major Deal with Pakistan, Strengthens Ties with India Amid Saudi-Pakistan Closeness

Islamabad/Abu Dhabi, January 24, 2026 – The United Arab Emirates (UAE) has withdrawn from a major deal with Pakistan, delivering a diplomatic setback for Islamabad at a time when it is deepening ties with Saudi Arabia. Analysts see the move as a strategic signal by Abu Dhabi, which has recently strengthened its partnership with India.

Pakistan-UAE Airport Deal Falters

According to Pakistani media outlet Express Tribune, the UAE has stepped back from a proposed agreement to manage Islamabad International Airport. The deal, whose framework was agreed upon in August 2025, has reportedly lost momentum, although the precise reasons for the UAE’s disengagement have not been disclosed. The development comes shortly after UAE President Sheikh Zayed bin Al Nahyan made a surprise visit to India this week, underscoring the deepening India-UAE relationship.

Tensions Over Saudi-Pakistan Alignment

Pakistan’s growing closeness with Saudi Arabia has reportedly caused unease in Abu Dhabi. In recent months, Riyadh and Islamabad have signed significant defense agreements, including a historic pact in September 2025, which stipulates that an attack on one country would be considered an attack on both. Turkey has also expressed interest in joining this defense collaboration.

Pakistan has long provided military training to Saudi forces in exchange for financial assistance, including a $6 billion aid package in 2018. The UAE, alarmed by Pakistan’s increasingly close ties with Riyadh and the new defense agreements, appears to be rebalancing its regional strategy in favor of India.

India-UAE Defense and Trade Partnership Strengthens

Amid tensions with Saudi Arabia over Yemen, Somalia, and Sudan, the UAE is increasingly aligning with India. Earlier this week, the two countries signed agreements to deepen defense and trade cooperation. As part of the deal, India secured a $3 billion contract to purchase liquefied natural gas (LNG) from Abu Dhabi, making it the UAE’s largest LNG customer.

Experts view the UAE’s withdrawal from the Islamabad airport project as a calculated move to counterbalance Saudi-Pakistan alignment while bolstering strategic and economic ties with India, highlighting shifting alliances in the Gulf and South Asia.