Will UAE Investment Spark Pakistan's Commercial Aviation Sector Growth?

December 24, 2025 at 07:39 AM•2 min read

Pakistan's Prime Minister Shehbaz Sharif invited increased UAE investment in the aviation sector, aiming to boost economic stability and strengthen

Key Points

1Prime Minister Shehbaz Sharif invited increased UAE investment in the aviation sector and other key industries.
2The move aims to boost commercial aviation sector growth and support Pakistan economic stability.
3Ongoing discussions include the privatization of Pakistan International Airlines (PIA) and the transfer of operations for Islamabad International Airport to the UAE.
4The UAE is Pakistan's third-largest trading partner, with bilateral trade exceeding $10.9 billion in FY 2023-24.

Prime Minister Muhammad Shehbaz Sharif has formally invited the United Arab Emirates (UAE) to increase its UAE investment in Pakistan across key sectors. The invitation specifically highlighted the need for collaboration in energy, minerals, IT, railways, and aviation. The goal is to support Pakistan’s economic growth and stability.

This invitation was extended during a meeting with UAE Ambassador Salem Al Zaabi in Islamabad. The Prime Minister stressed the strong, long-standing Pakistan-UAE bilateral ties. He noted the high volume of bilateral trade, which exceeded $10.9 billion in FY 2023-24. The UAE remains Pakistan's third-largest trading partner.

Focus on Aviation Investment

The appeal for Pakistan UAE aviation investment aligns with ongoing government plans. Pakistan is actively seeking foreign partners for its state-owned assets. This includes the potential privatization of Pakistan International Airlines (PIA).

Furthermore, negotiations are underway to transfer the operations of Islamabad International Airport to the UAE. Such a move would be part of a government-to-government framework agreement. Previous high-level talks have already explored investment in maritime, railways, and aviation infrastructure development.

Impact on Commercial Aviation Sector Growth

Pakistan's aviation sector is often called a "large sleeping giant". It faces significant challenges, including inadequate infrastructure and inconsistent state policy. The sector needs substantial investment to realize its full potential.

Increased UAE investment in Pakistan could catalyze commercial aviation sector growth. This would improve regional connectivity and foreign exchange earnings. Currently, 85% of Pakistan's international departure seats go to the Middle East. Major UAE carriers like Emirates, Etihad Airways, flydubai, and Air Arabia already operate extensive routes. Air Arabia also has a local joint venture, Fly Jinnah.

Opportunity: UAE expertise could modernize Pakistan's air traffic management systems.
Risk: Political instability and regulatory hurdles remain key challenges for foreign investors.

This renewed focus on economic ties, including aviation, signals a deeper strategic partnership. Stakeholders await the upcoming visit of UAE President Sheikh Mohamed bin Zayed Al Nahyan. The visit is expected to finalize new avenues for bilateral trade and cooperation and accelerate investment deals. For more commercial aviation news on regional developments, visit flying.flights.