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UAE-Pakistan trade and economic relations gather fresh momentum
More than 15 MoUs and a $10 billion investment commitment are paving the way for deeper economic engagement
- PUBLISHED: Fri 14 Aug 2026, 2:11 PM
The UAE and Pakistan continue to go from strength to strength, building on decades of mutual trust, economic cooperation, and robust people-to-people ties. As both nations set their sights on the future, they are broadening collaboration across a host of high-growth sectors, including infrastructure development, railway modernisation, special economic zones, port logistics, information technology, banking, renewable energy, artificial intelligence, and science and technology.
In an interview with Khaleej Times, Pakistan’s Ambassador to the UAE, Shafqat Ali Khan, said the partnership rests on a solid foundation of more than 15 memorandums of understanding signed in recent years across sectors ranging from ports and logistics to food security, banking, minerals, and energy.
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“The UAE’s commitment to invest $10 billion in Pakistan is a strong vote of confidence in the country’s economic potential and the enduring strength of bilateral ties,” Khan said.
He noted that both countries are working hand in hand to identify commercially viable, high-impact projects that can unlock sustainable growth, create jobs, and sharpen economic competitiveness in an increasingly dynamic global landscape.
According to Khan, the focus remains on translating shared vision into tangible outcomes, ensuring that the UAE-Pakistan partnership remains ahead of the curve as new economic opportunities emerge.
Strengthening Bilateral Ties
The ambassador said Pakistan and the UAE share an enduring and trusted partnerships. “Rooted in a legacy of mutual respect and reinforced by decades of close cooperation, our relationship has today evolved into a comprehensive partnership, driven by a shared vision for peace, prosperity, and sustainable economic growth.
He said the enduring affection of the late His Highness Sheikh Zayed bin Sultan Al Nahyan, the Founding Father of the UAE, for Pakistan laid the foundation for this relationship. His regard for Pakistan as his second home remains a lasting symbol of the warmth and goodwill that continue to define our ties.
“Today, our cooperation spans virtually every area of mutual interest. Alongside our close political and defence collaboration, we are witnessing unprecedented momentum in trade, investment, energy, technology, food security, logistics, and infrastructure development.
“Our two countries have concluded a series of MoUs in recent years in sectors such as ports and logistics, banking, energy, minerals, agriculture, and food security. These initiatives reflect the UAE’s confidence in Pakistan’s economic outlook and our shared commitment to building long-term, mutually beneficial partnerships. Our defence and security cooperation remains a cornerstone of the relationship, reflecting decades of institutional collaboration, mutual trust, and a common commitment to regional peace, security, and stability.
He said the UAE is one of Pakistan’s most important economic partners, a leading source of investment, remittance, a major trading partner, and home to a vibrant 2.2 million Pakistani diaspora that serves as a bridge between our two nations.
Growing Community
Khan said the Pakistani community in the UAE is one of the strongest pillars of our bilateral relationship.
“Today, more than 2.2 million Pakistanis live and work in the UAE, making them the country’s second-largest expatriate community. The community has continued to grow steadily over the years, with around 40,000 new arrivals last year alone. Record remittance flows are another reflection of the community’s continued contribution and success.
“The welfare of Pakistanis in the UAE remains one of the government’s highest priorities. We are in regular and constructive engagement with the UAE authorities on all matters affecting our community. Our dialogue is open, positive, and focused on ensuring that legitimate travellers, professionals, investors, and workers continue to have opportunities in the UAE.”
It is important to recognise that visa decisions are the sovereign prerogative of a country, and occasionally, individual cases can arise with any large expatriate community. “Whenever genuine issues are brought to our attention, our Embassy in Abu Dhabi and Consulate General in Dubai engage the relevant Emirati authorities through established channels to facilitate their resolution wherever possible.”
“At the same time, we encourage Pakistani nationals to ensure that their documentation, qualifications, and employment arrangements fully comply with UAE laws and regulations. We also advise community members to rely on official information from the Embassy and our Consulates rather than unverified reports circulating on social media,” the ambassador said.
UAE — A Major Source of Remittances to Pakistan
Khan said the UAE remains one of Pakistan’s most important sources of remittances, consistently ranking among the top two and recently recording its highest monthly inflow, crossing the one-billion-dollar mark in a single month.
“This underscores the vital contribution of the Pakistani diaspora in UAE to national economic stability. The government continues to prioritise formal banking channels through close coordination between the State Bank of Pakistan, Pakistani banks operating in the UAE, particularly the National Bank of Pakistan, and the Embassy and Consulate,” he said.
The ambassador said joint outreach efforts, community engagement programmes, and partnerships with financial institutions and exchange houses are actively promoting secure, faster, and more convenient formal transfers.
“Initiatives such as the Roshan Digital Account have further facilitated seamless digital access for overseas Pakistanis, reinforcing confidence in formal channels. These measures aim to make formal transfers the preferred and most reliable option while strengthening the overall remittance ecosystem.”
Regional Security and Diplomacy
To a question about Pakistan’s potential role in promoting dialogue and reducing geopolitical tensions in the Middle East and the wider GCC region, Khan said Pakistan remains firmly committed to the principles of dialogue and diplomacy as the most effective means for the peaceful settlement of disputes and the reduction of ongoing tensions in the Middle East and the GCC region.
“As an honest and sincere facilitator, Pakistan played a constructive mediation role that helped create the space for direct engagement between the parties and culminated in the Islamabad Memorandum of Understanding. This effort reflected sustained diplomatic engagement, close coordination with our GCC partners, and a consistent emphasis on restraint and de-escalation.”
He said Pakistan continues to support the implementation of the understandings reached and stands ready to facilitate further dialogue wherever it can contribute to lasting stability. Such efforts underscore both Pakistan’s commitment to regional harmony and the international recognition of its positive role in promoting peace.
The ambassador strongly believes that Pakistan can play a constructive role in supporting regional peace and security efforts. “Yes. Pakistan continues to play a constructive role in supporting regional peace and security efforts, in full alignment with the UAE’s strong emphasis on stability,” he said.
As a mediator, he said Pakistan has already demonstrated its capacity to contribute meaningfully through sustained diplomatic engagement that helped create space for dialogue and culminated in the Islamabad Memorandum of Understanding. “This experience reinforces our conviction that principled mediation and close coordination with trusted partners remain essential tools for de-escalation.”
Pakistan stands ready to work alongside the UAE and other GCC partners in promoting restraint, encouraging dialogue, and reinforcing the conditions necessary for lasting security and stability across the Middle East and the wider GCC region. Our shared interest in a peaceful neighbourhood underpins this constructive approach, the ambassador said.
Role of Pakistani Diaspora
Khan said the Pakistani community in the UAE has consistently demonstrated maturity, responsibility, and respect for the laws and loyalty to the host country. During periods of regional uncertainty and military escalation our diaspora remained peaceful, resilient, and focused on their professional and personal responsibilities.
“Unfortunately, four of our nationals lost their lives and 26 others were injured due to falling debris from the interception of missiles and drones during the early days of the conflict. However, our community remained disciplined, showed remarkable composure, and continued with their daily routines without panic.
“I also want to place on record our deepest gratitude to the UAE government for the exceptional care and treatment extended to our injured nationals, including the top-tier medical attention provided by hospitals across the Emirates. We are also profoundly thankful that the UAE government took care of the boarding and lodging expenses of a large number of Pakistanis who were stranded at the airport during the initial weeks of the war. This was an unprecedented gesture of generosity.
“My message to our community in the UAE is clear: remain calm, stay informed only through official sources, and continue to fully comply with all local laws and regulations. They should refrain from circulating unverified information on social media and maintain close contact with the Embassy and Consulates for any guidance or assistance. Pakistan deeply values the contributions of its expatriate community and remains fully committed to safeguarding their welfare and supporting them whenever needed.”
E-passport Issuance
Khan said the government of Pakistan is actively expanding the availability of modern passport services, including e-passports, for overseas Pakistanis. The introduction of these services is being implemented in phases, taking into account technical infrastructure, security requirements, and operational readiness at our diplomatic missions.
“We understand the strong demand for e-passports among the Pakistani community in the UAE and are working closely with the relevant authorities in Islamabad to operationalise the issuance of e-passports as early as possible. We encourage applicants to follow updates issued by the Embassy and Consulates regarding the rollout of these services.”
The ambassador said the Pakistani community in the UAE is not only one of our largest overseas communities but also a cornerstone of the enduring partnership between our two brotherly nations. While their contribution through remittances (accounting for around 20 per cent of Pakistan’s total) is deeply valued, their role extends far beyond financial support. They are trusted partners in advancing economic cooperation and powerful ambassadors of Pakistan’s values, talent, and entrepreneurial spirit.
“We see our vibrant UAE diaspora as catalysts for the next phase of this relationship, driving trade, investment, entrepreneurship, innovation, tourism, education, and technology transfer. Their professional expertise, skills, and business acumen can help unlock new opportunities for investment, innovation, and sustainable economic growth in both countries.
“Equally important is their role in strengthening the human dimension of our bilateral relationship. Through community engagement, cultural exchange, educational collaboration, and people-to-people contacts, they continue to reinforce the deep bonds of friendship and mutual understanding between Pakistan and the UAE,” Khan said.
