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Turning trade crisis into strategic advantage — A story of Pakistan-UAE ties
The UAE-Pakistan partnerships reflect decades of mutual trust built between governments, institutions and people
- PUBLISHED: Fri 14 Aug 2026, 11:56 AM
- By:
- Ali Zeb Khan
After blockade of the Strait of Hormuz in March this year, the region faced severe challenges with suspension of shipping operations, sporadic airspace restrictions and disruption in logistics with escalating freight costs. This was the time when we also saw something commendable.
The UAE transformed these critical times into a strategic advantage where the supply chains emerged more resilient. The immediate reinforcement from the government that the market conditions are stable with steady flow of goods injected a real confidence to withstand the pressures. The redirection of trade routes through alternative ports like Khorfakkan and Fujairah along with overland corridors further implied of pro-active adaptation to bypass maritime choke points and ensured an uninterrupted supply owing to diverse import sources.
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Since the terminal and logistics operators kept the ports running besides availability of feeder vessels and fleet of bonded trucks, a seamless supply chain solution was delivered to maintain market continuity. On Pakistan side, some maritime traffic also shifted towards Pakistan’s own transshipment terminals like Karachi Port and Gwadar as alternatives when the traditional hub like Jabel Ali came under stress. This did not happen by chance. It was result of both the governments and the private sector refusing to surrender before any prolonged paralysis.
It is heartening to refer to the UAE’s non-oil foreign trade which surpassed $528 billion in the first half of 2026, marking a 13 per cent year-on-year increase. This highlights the success of national resilience and global trade integration. Knowing that the Pakistan-UAE have firm and deep-rooted relations, both countries maintained a nonstop momentum for the continuous flow of trade. It is evident from the data of the State Bank of Pakistan that a total merchandise bilateral trade crossed $10.5 billion during financial year 2025-26 with our exports to the UAE topping over $2.1 billion despite geopolitical unrest. However, the disruptions slowed down the pace of exports, and these were not the minor obstacles. For the business community with predictable schedules across the year, this was a real shock.
Maintaining its presence at the global stage, the vibrant participation of Pakistani exporters has always remained remarkable over the years in multi-sector exhibitions held in the UAE. The contribution of different Trade Missions, Pakistani and other multinational Business Councils in Dubai acted as a vital catalyst in exploring and expanding Pakistani exports. However, the ongoing regional situation posed delays which might take some time to fully converting exhibition-driven business leads into long-term market share.
With a focus to enhance regional connectivity during these disturbances, the adoption of multimodal means of transport to avoid the hindered flow of trade was need of the hour. Positioning Pakistan as a dependable agricultural supplier to the UAE, the institutional linkages were actively strengthened with the host government, Business Chambers and other trade–related departments to evaluate demand of essential items and to connect UAE-based importers and distributors with Pakistani exporters. Accordingly, the Mission in coordination with the Ministry of Commerce, Trade Development Authority of Pakistan and the UAE entities organised virtual business-to-business (B2B) meetings and different webinars on the use of alternative routes, real-time information on demand and supply besides handling of freight costs. Resultantly, food and agricultural products in particular, textiles and other manufactured goods from our export basket sustained to anchor in the UAE market.
Undoubtedly, the UAE’s economic diversification is also driven by robust digital, financial, and tech partnerships besides huge investments in artificial intelligence (AI) and smart infrastructure. Pakistan’s emerging IT ecosystem supports this vision by providing specialised services in AI, cloud, fintech, data centre, and cyber security. The dynamic participation of Pakistani IT companies facilitated by Pakistan Software Exports Board (PSEB), Ministry of IT & Telecom at the Gitex Global indicates Pakistan’s full preparation for international partnerships, investment and integration with major technology markets. It is augmented by the fact that Pakistan’s global IT exports soared to a record-breaking $4.6 billion in fiscal year 2025–26, marking a 21 per cent year-on-year growth. None of this is to suggest the work is done.
The workers’ remittances tell another story of a stronger economic relations with its distinct reality. Remittances from the UAE to Pakistan rose 13 per cent to $8.8 billion in financial year 2025-26, sent by the 2.2 million Pakistanis living in the UAE. The Mission continues to work with banks and exchange companies to encourage the use of legal channels and to utilise digital product like the Pakistan Roshan Digital Account for investments.
Despite regional volatility, the UAE would continue investing globally while concurrently scaling up domestic funds to strengthen national supply chains and trade infrastructure. The Mission maintains a close liaison with the Ministry of Investment in the UAE and Special Investment Facilitation Council in Pakistan to continuing joint efforts to identify new opportunities, resolve challenges, and translate goodwill into tangible outcomes. The investment cooperation in areas of port infrastructure, special zones, banking, logistics, information technology and mining remains a real work in progress.
As the region charts a path toward greater stability, the Missions from both sides will continue to serve as a bridge for a stronger foundation towards shared prosperity. This partnership is not accidental, it reflects decades of mutual trust built between governments, institutions and people.
— Ali Zeb Khan is Trade and Investment Counsellor at Pakistan Consulate Dubai.