- Pakistan and the UAE expand cooperation across labour mobility, food security, logistics and sustainable development
Pakistan and the United Arab Emirates share one of the most dynamic and multidimensional economic relationships in the region. What began decades ago as a traditional trading partnership has evolved into a deeper economic corridor shaped by trade, investment, labor mobility, logistics, and increasingly, sustainable development. Today, as global markets shift toward green transitions and climate-smart growth, both countries are exploring new opportunities to strengthen their partnership; not only through expanding trade volumes but through cooperation in sectors that align with the priorities of future economies. With its strategic location, expanding logistics capabilities, and commitment to diversified growth, the UAE has become Pakistan’s most important gateway to the Gulf and beyond, while Pakistan offers the UAE a young workforce, large consumer market, and untapped potential in renewable energy, agriculture, maritime development, and the blue economy.
Source: Compiled by author using data from UN COMTRADE (2024), Pakistan Bureau of Statistics (FY2023–24), State Bank of Pakistan (Workers’ Remittances 2024), and Government of Pakistan / SIFC investment announcements (2024).
The Pakistan–UAE trade relationship has maintained consistent momentum over the past decade. Bilateral trade surpassed an estimated USD 10–11 billion in FY 2023–24, reflecting strong demand for energy products, re-exports, food items, textiles, and services. While the majority of this trade favors the UAE due to oil imports and Dubai’s vast re-export networks, Pakistan’s export basket to the Emirates has gradually broadened. Exports valued at USD 1.7–2 billion annually include textiles, rice, meat, fruits, vegetables, minerals, and manufactured goods. Yet many experts argue that Pakistan has not fully tapped the UAE’s role as a global logistics and re-export center. With world-class ports, free zones, competitive shipping routes, and integrated supply chains, the UAE provides Pakistan access to not just the Gulf but also African, European, and Southeast Asian markets. For Pakistani exporters, aligning with Dubai and Abu Dhabi’s logistics strengths can reduce transaction costs, shorten delivery times, and diversify market access. The UAE is also a pivotal market for Pakistan’s halal food and agribusiness sectors. As demand for high-quality, traceable, and sustainably produced food rises in Gulf markets, Pakistan is well positioned to increase its share by providing it strengthens value-chain compliance, standardization, and packaging. The UAE’s stringent import requirements can serve as benchmarks that drive improvements in Pakistan’s agricultural sector and enhance long-term export competitiveness.
Labor mobility forms the human backbone of this partnership. The Emirates hosts more than 1.5 million Pakistanis who work across construction, retail, logistics, healthcare, and professional services. These workers play a significant role in the UAE’s rapid transformation and, in return, provide crucial financial inflows to Pakistan. Remittances from the UAE reached approximately USD 6.7 billion in 2024, making it one of Pakistan’s largest remittance sources. These inflows not only support millions of households but also stabilize Pakistan’s foreign-exchange reserves and domestic purchasing power. As the UAE diversifies into technology, green energy, advanced manufacturing, and tourism, Pakistan’s skilled workforce stands to benefit even more through new employment avenues and professional development. Investment is another growing pillar. High-level engagements in 2024 and 2025 resulted in announcements of UAE commitments estimated at USD 10 billion, targeting infrastructure, energy, agriculture, ports, and technology. While these commitments often require policy reforms and structured project pipelines to materialize, they reflect confidence in Pakistan’s long-term economic prospects. Emirati investors have expressed strong interest in renewable energy, especially large-scale solar and wind projects. Other sectors of interest include cold-chain logistics, food security projects, urban development, digital transformation, and port modernization. With improved regulatory clarity, simplified procedures, and macroeconomic stability, Pakistan can convert these expressions of interest into meaningful and long-lasting economic partnerships.
A transformative area of future cooperation is the rise of green growth partnerships. The UAE has positioned itself as a global leader in renewable energy, sustainable city planning, and climate diplomacy, and Pakistan’s growing climate vulnerability makes it a natural partner for such initiatives. The UAE’s experience in solar energy, green hydrogen, sustainable construction, and water desalination offers valuable models for Pakistan, which struggles with energy shortages, rising fuel costs, and water scarcity. Collaboration could result in large-scale solar parks, wind energy corridors, and urban renewables integration that reduce Pakistan’s dependence on imported fuels. Water security is another promising domain. The UAE’s expertise in desalination, especially when linked to renewable energy, can support coastal cities like Karachi and Gwadar, improving water supply reliability and enhancing climate resilience. Agriculture and food security offer additional synergies. The UAE’s growing reliance on food imports creates opportunities for Pakistan to modernize its agriculture sector through climate-smart techniques, precision farming, hydroponics, and improved supply-chain management. By partnering with UAE investors and adopting Gulf market standards, Pakistan can expand its exports while addressing domestic food security challenges. The blue economy is another frontier, with Pakistan’s long coastline offering potential in fisheries, marine logistics, aquaculture, and coastal tourism. The UAE’s advanced maritime infrastructure and experience in port development can help Pakistan unlock this underutilized resource.
Despite strong prospects, several challenges need to be addressed to fully realize the potential of Pakistan–UAE economic cooperation. Pakistan faces issues such as regulatory unpredictability, slow project approvals, inconsistent policies, and currency volatility, all of which raise investor concerns. Meanwhile, UAE investors seek assurance on financial transparency, governance, risk mitigation, and project bankability. These gaps can be bridged through policy consistency, transparent procurement systems, one-window facilitation for foreign investors, and well-prepared feasibility studies for large-scale projects. Establishing clear legal frameworks for public–private partnerships and improving dispute resolution mechanisms will also strengthen investor confidence.
As both nations navigate a rapidly evolving global landscape, their partnership is poised for a new chapter that is defined not only by traditional trade and labor flows but by sustainability, technology, and long-term strategic investment. The UAE provides Pakistan with a gateway to global markets, world-class logistics, and access to Gulf capital, while Pakistan offers human capital, agricultural potential, energy opportunities, and a growing consumer market. By aligning their economic visions and embracing green growth diplomacy, Pakistan and the UAE can build a future-oriented partnership that promotes resilience, prosperity, and shared progress for decades to come.
The Author is MD IRP /Faculty department of H&SS- Bahria University Karachi