The diplomatic relationship between Pakistan and the United Arab Emirates (UAE) is facing significant challenges, indicating a lasting impact on their partnership. The UAE, a longtime supporter of Pakistan during economic hardships and a key destination for Pakistani workers, demanded the repayment of a USD 3.5 billion loan. This loan was eventually settled with assistance from Saudi Arabia.
Following the loan repayment, the UAE took actions such as deporting around 15,000 Pakistani nationals and terminating employees at Etihad Airways, signaling a notable decline in relations. The historical ties between the two nations, characterized by mutual support during crises and significant economic cooperation, have been strained by recent events.
The rift between Pakistan and the UAE escalated after Pakistan entered a mutual defense agreement with Saudi Arabia in 2025, leading to tensions with Abu Dhabi. Additionally, the UAE perceived Pakistan’s stance on Iran during recent conflicts as unsupportive, further straining their relationship. The UAE expected stronger diplomatic alignment from Pakistan, especially regarding Iranian activities in the region.
The growing tensions between the Gulf Arab states and Iran have exacerbated the situation, with the UAE feeling that Pakistan did not adequately address their concerns during peace talks. Pakistan’s decision to open land routes to Iran while Gulf countries faced Iranian blockades added to the strain. These developments have led to a noticeable shift in the strategic dynamics between the UAE and Pakistan.
