UAE lost interest in key Pakistan airport deal? Report says project shelved after President’s 3-hour India trip

UAE has reportedly lost interest in Pakistan’s plans of outsourcing the management and operations of Islamabad International Airport to the United Arab Emirates, and shelved the plans aside.

Scrapping of the agreement which has been in talks since August 2025 – came after UAE President Sheikh Nahyan’s three-hour surprise-visit to India, mentioned a report by Hindustan Times.

Now, with no progress on the outsourcing front, the Pakistan government has decided to place Islamabad International Airport on the active privatization list. The move comes close on the heels of the successful privatization of Pakistan International Airlines (PIA), reported Tthe Express Tribune.

Sources told The Express Tribune that the UAE’s failure to name a nominated entity ultimately signaled its lack of interest, prompting Islamabad to change course.

‘UAE not interested’

The Pakistani media outlet’s report said that officials sought a definitive answer from the UAE with respect to the deal by issuing a final call letter. The Arab nation, however, reportedly responded by saying it was still unable to name a nominated entity and indicated it was no longer interested in pursuing the process.

It further said the UAE was not interested in continuing the process. Consequently, the government approved a proposal to include Islamabad International Airport in the active privatization list, following the example of the highly successful privatization of Pakistan International Airlines.

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