In a significant stride toward bolstering bilateral relations, Pakistan and the United Arab Emirates (UAE) on Monday signed a series of agreements aimed at enhancing cooperation in trade, culture, and consular affairs.
The signing ceremony was held during the official visit of UAE Deputy Prime Minister and Minister of Foreign Affairs, Sheikh Abdullah bin Zayed Al Nahyan, to Islamabad on April 21, 2025.
High-Level Diplomatic Engagements in Islamabad
Sheikh Abdullah’s two-day visit, which began on Sunday, was marked by high-level diplomatic meetings, including talks with Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar. The meetings underscored a shared commitment to expanding cooperation across vital sectors such as energy, trade, investment, and regional security.
During a joint press briefing at the Ministry of Foreign Affairs, Sheikh Abdullah remarked: “I must say that our relationship has been growing on a good pace. I think both our leaders, the people of Pakistan and the UAE do want to see more development in the relationship.”
He further noted, “I really look forward that the good spirit that has been moving the relationship in the last few months would continue on so many different cycles, if it’s trade, investment, aviation.”
New Agreements signal stronger economic & cultural ties
Three key documents were signed during the visit:
- A Memorandum of Understanding (MoU) to establish a Joint Consular Affairs Committee,
- An agreement to strengthen cultural cooperation between the two nations, and
- An MoU to establish the UAE-Pakistan Joint Business Council, signed between the Federation of UAE Chambers of Commerce and Industry and the Federation of Pakistan Chambers of Commerce and Industry.
The signing ceremony was attended by senior UAE officials, including Minister of State Ahmed Bin Ali Al Sayegh; Assistant Minister for Economic and Trade Affairs Saeed Mubarak Al Hajeri; and Assistant Minister of Foreign Affairs for Energy and Sustainability Abdulla Balalaa. The UAE Ambassador to Pakistan, Hamad Obaid Al Zaabi, was also present.
Strategic Economic Partnership and $10B Investment Commitment
The UAE remains Pakistan’s third-largest trading partner, following China and the United States. Over the past two decades, the UAE has invested more than $10 billion in Pakistan, a figure expected to rise with new pledges including a $10 billion commitment announced in May 2024 targeting key sectors such as energy and infrastructure.
Bilateral trade exceeded $10.9 billion in the 2023–24 fiscal year. Major agreements signed in earlier visits—particularly those in January and February 2024—include deals worth over $3 billion, covering railways, economic zones, and ports.
Furthermore, the UAE is home to approximately 1.8 million Pakistani expatriates, forming the second-largest overseas Pakistani community globally. Remittances from the UAE reached $6.7 billion in 2024 and are projected to exceed $7 billion in 2025.
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Prime Minister Shehbaz Sharif welcomes deepening Ties
Later on Monday, Sheikh Abdullah held a separate meeting with Prime Minister Shehbaz Sharif. Chief of Army Staff Gen Asim Munir and ISI Director General Lt Gen Asim Malik were also in attendance.
PM Sharif expressed appreciation for the “positive trajectory” of UAE-Pakistan relations and called for intensified collaboration in trade, energy, and people-to-people exchanges.
Sheikh Abdullah reaffirmed the UAE’s resolve to strengthen the relationship, emphasizing that “both countries share a deep-rooted friendship and a joint commitment to mutual prosperity.”
Pakistan-UAE Trade soars past $10.9B as new Agreements cement Strategic ties
Earlier, Pakistan’s envoy to the UAE, Ambassador Faisal Tirmizi, shared detailed trade figures in a statement to the Emirates News Agency (WAM). “These figures reflect not only the strength of our economic partnership, but also the vital role played by the Pakistani diaspora in supporting the national economy,” said Ambassador Tirmizi.
According to Tirmizi:
- From July 2024 to January 2025, goods trade rose by 21.63%, with Pakistani exports up 7.53%.
- Total bilateral trade in FY 2023–24 surpassed $10.9 billion,
- Goods trade reached $8.41 billion, with Pakistani exports increasing 41.06% to $2.08 billion,
- Imports from the UAE declined 14.45% to $6.33 billion, significantly reducing the trade deficit by 28.28%,
- Trade in services stood at $2.56 billion, marking a 20.54% year-on-year increase.
Addressing the 1.5 million-strong Pakistani diaspora in the UAE, Ambassador Tirmizi encouraged full compliance with UAE laws and digital regulations. He also introduced a 14-minute video guide to help expatriates understand their rights, responsibilities, and legal remittance channels.
Ambassador Tirmizi also highlighted that nearly 19 Emirati companies currently operate in Pakistan, with substantial UAE investments in key sectors including telecommunications, banking, energy, tourism, real estate, and IT. He cited landmark investments such as:
- The Abu Dhabi Group’s acquisition of Bank Alfalah and UBL,
- UAE firms like Etihad Airways, Emaar, Emirates, and Dubai Islamic Bank establishing operations in Pakistan,
- A major stake in Pakistan Telecommunication Company Limited (PTCL) acquired for over $2 billion,
- Recent port and logistics agreements involving Abu Dhabi Ports Company and DP World.
“These investments demonstrate the UAE’s deep and long-term commitment to Pakistan’s growth and connectivity,” the ambassador said. He praised the role of the Special Investment Facilitation Council (SIFC) in streamlining investment through a “one-window operation” that enhances transparency and eliminates bureaucratic delays. “SIFC is proving instrumental in making Pakistan more accessible and attractive to foreign investors, including those from the UAE,” he added.