UAE president wraps first official Pakistan visit with talks on trade and regional issues

President of the United Arab Emirates, Sheikh Mohamed bin Zayed Al Nahyan, meets Prime Minister Shehbaz Sharif (right) in Islmabad, Pakistan, on December 26, 2025. (PID)
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Updated 26 December 2025
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UAE president wraps first official Pakistan visit with talks on trade and regional issues

  • Pakistan’s JF-17 fighter jets escort Sheikh Mohamed bin Zayed’s aircraft as it enters the country’s airspace
  • The two countries discuss cooperation in energy, investment, technology and people-to-people exchanges

ISLAMABAD: Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, on Friday paid his first official visit to Pakistan since assuming office, holding talks with Prime Minister Shehbaz Sharif that focused on deepening economic cooperation and regional coordination, the Prime Minister’s Office said.

The visit, undertaken at Sharif’s invitation, comes as Pakistan seeks to strengthen ties with Gulf partners and attract foreign investment to support its economy.

The visiting leader arrived at Nur Khan Airbase in Rawalpindi, where he was received by Sharif, Deputy Prime Minister Ishaq Dar, Chief of Army Staff Field Marshal Asim Munir and senior members of the federal cabinet. His aircraft was escorted by a formation of JF-17 fighter jets as it entered Pakistani airspace, and he was accorded a 21-gun salute.

“Sheikh Mohamed bin Zayed held substantive talks with the Prime Minister,” the official statement circulated at the end of his visit said. “Both sides underscored the importance of expanding collaboration in economic cooperation, investment, energy, infrastructure development, IT, technology and people-to-people exchanges.”

“They also agreed on the need to enhance bilateral trade, which had great potential for mutually beneficial growth,” it added.

The statement said the two leaders also exchanged views on important regional and international developments and reaffirmed their shared commitment to continue close coordination on matters of mutual interest.

Islamabad was decorated with Pakistani and Emirati flags and large billboards ahead of the visit, while the capital observed a public holiday as authorities rolled out traffic restrictions.

State-run broadcasters and private television channels aired footage of the UAE president’s arrival and ceremonial reception.

Pakistan considers the UAE one of its closest regional and economic partners. The Gulf state is Islamabad’s third-largest trading partner after China and the United States and a major source of foreign investment, with Emirati investment in Pakistan exceeding $10 billion over the past two decades, according to the UAE’s foreign ministry.

Pakistani policymakers also view the UAE as an important export destination due to its geographical proximity, which reduces transportation and freight costs.


73% of foreign firms in Pakistan see it as a viable investment destination — survey

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73% of foreign firms in Pakistan see it as a viable investment destination — survey

  • OICCI survey highlights improved investor optimism since 2023, when it stood at 61%
  • Regulatory unpredictability, high costs continue to keep foreign investors cautious

ISLAMABAD: Seventy-three percent of overseas investors operating in Pakistan now recommend the country as a viable destination for direct investment, up from 61% in 2023, according to a survey of more than 200 multinational companies released on Friday, signaling a measurable improvement in investor sentiment following Pakistan’s 2022–23 foreign exchange crisis.

The 2025 Perception and Investment Survey, conducted by the Overseas Investors Chamber of Commerce and Industry (OICCI), which represents multinational firms in the country, found that improving macroeconomic indicators and recent policy reforms have begun to restore confidence, though investors remain cautious about regulatory unpredictability and rising business costs.

“The 2025 Perception and Investment Survey ... provides a cautiously optimistic snapshot of investor sentiment in

Pakistan,” the report said, noting that “improvements in macroeconomic indicators and recent policy reform initiatives have begun to rebuild confidence among foreign investors.”

The survey pointed to relative exchange-rate stability after a period of steep rupee depreciation, alongside credit rating upgrades by international agencies.

“73% of OICCI members now recommend Pakistan as a viable FDI destination, compared to 61 percent two years earlier,” it added.

Despite the improved macro picture, the survey warned that structural and regulatory challenges continue to weigh on investment decisions. 

“The broader regulatory landscape remains complex and unpredictable,” it said, highlighting delays in tax refunds, inconsistent enforcement and weak coordination between federal and provincial authorities.

Foreign direct investment, while showing some positive movement, “remains concentrated in cautious brackets,” with most investors opting for modest commitments despite a decline in the proportion of firms planning no future investment.

Rising costs were a major concern, with nearly all respondents reporting increases in energy prices, wages and raw material costs. Political instability, sudden regulatory changes and an unclear fiscal roadmap were listed among the top investor apprehensions.

The survey warned that despite the positive outlook among multinationals operating in Pakistan, international perception of the country has improved only marginally, adding that “negative global coverage continues to influence investment decisions significantly,” and underscoring the need for a more proactive international communication strategy.