Major setback for Pakistan, Abu Dhabi backs out of Airport deal after UAE President’s India visit, Islamabad now plans to…

Once the closest of Gulf allies, Riyadh and Abu Dhabi are locked in an unusual public confrontation over support to rival groups in Yemen.

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New Delhi: In a significant development, Abu Dhabi has backed out from its plan to operate Islamabad International Airport. The decision comes soon after United Arab Emirates (UAE) President Sheikh Mohammed bin Zayed Al Nahyan made a surprise trip to India. The decision by the UAE authorities is seen as a major embarrassment for Pakistan. The development was confirmed by Pakistani publication The Express Tribune, which reported that the plan was shelved after the UAE lost interest in the project and failed to identify a local partner to outsource operations.

It is important to note that the development comes at a time when UAE and Saudi Arabia are witnessing rising tensions. Once the closest of Gulf allies, Riyadh and Abu Dhabi are locked in an unusual public confrontation over support to rival groups in Yemen.

While Islamabad inked a defence deal with Riyadh and wants to form what is being described as an “Islamic NATO” with Saudi Arabia and Turkey, the UAE has signed new defence deals with India.

Pakistan-UAE ties:

The UAE has been among Pakistan’s largest trading partners for nearly four decades. It has also been a major source of remittances, with thousands of Pakistani workers employed across various sectors. Notably, the two countries cooperated in defence, energy, and investment initiatives. However, in past few years, the bond between the two countries strained by safety issues, licensing disputes, and Pakistan’s ageing infrastructure.

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As per the recent reports, Pakistan’s state-owned enterprises witnessed heavy losses due to weak governance and mismanagement stemming from political interference. Islamabad last year privatised Pakistan International Airlines (PIA).

Despite the UAE’s proven capability in managing airports in difficult environments, including Afghanistan, its decision to withdraw from the Islamabad Airport project highlights a significant loss of confidence.

India-UAE ties grow stronger:

United Arab Emirates (UAE) President Sheikh Mohammed bin Zayed Al Nahyan visited India last week and approved the release of 900 Indian prisoners. The decision is seen as a strong gesture of goodwill towards India. To recall, during Sheikh Mohammed bin Zayed Al Nahyan’s visit to India, PM Modi and UAE president reviewed the entire range of bilateral cooperation and agreed that the India-UAE Comprehensive Strategic Partnership has not only matured but is now moving into a more ambitious and multidimensional phase.