Pakistan sits at the intersection of a quiet but deep Saudi-UAE rivalry. It is shaped by oil politics, regional influence & economic ambition. Navigating it is key to Pakistan’s stability.
What began as Gulf unity in Yemen & OPEC+ has turned into strategic competition: Riyadh wants regional centrality; Abu Dhabi seeks independent clout as a global finance & logistics hub.The rift shows up in energy policy (OPEC+ fights), economic reforms, HQ-relocation rules, and competing roles in conflicts like Sudan.
Into this mix steps Pakistan, historically tied to both Saudi in security & religion; UAE in trade, jobs, and investment.UAE’s influence in Pakistan is mainly economic: loans, rollovers, big investment pledges. These lifelines create real leverage in Islamabad’s decision-making. Example: UAE’s $2 billion loan rollover in 2025 kept Pakistan’s reserves afloat, but also signaled who Islamabad must keep happy.Another lever: remittances. Millions of Pakistanis work in the UAE; billions in annual inflows sustain households and provinces which is,quiet, but powerful form of influence.The UAE also invests in ports, telecoms, and real estate, linking its capital to Pakistan’s elite business networks and by extension, to key political actors.These connections can, intentionally or not, exploit internal fault lines: civil-military tensions, weak coalitions, and regional disparities.When one party or faction gets disproportionate access to Emirati capital or contracts, politics tilts, fueling rivalries at home.
At the same time, Saudi Arabia remains crucial for defense training, energy aid, and religious legitimacy still anchor the relationship.
To stay balanced, Islamabad must:
– Diversify partners (China, Turkey, Malaysia)
– Increase transparency in Gulf investments
– Shield institutions from patronage politics
– Protect overseas workers’ rights
Pakistan needs to act, not as a pawn, but as a bridge leveraging both Riyadh’s capital & Abu Dhabi’s innovation for national gain. Balanced diplomacy with both the UAE and Saudi Arabia is not just prudent; it is a strategic imperative for Pakistan’s sovereignty, economic stability, and political cohesion. Use both relationships, but don’t let either become the only lifeline.