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UAE set to run Kabul airport in deal with IEA: sources

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The Islamic Emirate of Afghanistan (IEA), and the United Arab Emirates are poised to strike a deal for the Gulf nation to run Kabul airport and several others in Afghanistan that could be announced within weeks, according to sources familiar with the negotiations, Reuters reported.

According to the report the IEA, whose government remains an international pariah without formal recognition, have courted regional powers, including Qatar and Turkey, to operate Kabul airport, landlocked Afghanistan’s main air link with the world, and others.

But after months of back-and-forth talks, and at one point raising the possibility of a joint UAE-Turkey-Qatar deal, the IEA is set to hand the operations in their entirety to the UAE, who had previously run Afghan airports, the sources said.

An agreement would help the IEA ease their isolation from the outside world as they govern an impoverished country beset by drought, widespread hunger and economic crisis. It would also hand Abu Dhabi a win in its diplomatic tussle with Qatar for influence, Reuter’s story read.

Under the deal with the UAE, Afghans will be employed at the airports, including in security roles, crucial for the IEA who want toshow they can create jobs but also because they staunchly oppose the presence of foreign forces, sources said.

According to Reuters an Emirati state-linked contractor had been contracted to provide security services, which should be announced soon, while negotiations over airspace management are ongoing, they said.

The IEA in May awarded the ground services contract to UAE state-linked GAAC, which was involved in running security and ground handling services at Afghan airports before the IEA takeover, shortly after IEA officials had visited Abu Dhabi.

Meanwhile, Qatar and Turkey’s joint negotiations with the IEA broke down around the same time, sources said.

Emirati officials had no immediate comment when contacted by Reuters. GAAC did not respond to a request for comment.

An IEA transport ministry spokesman confirmed an aviation security contract had already been signed with the UAE but said the air traffic contract was not finalised or confirmed yet, Reuters reported.

There is little direct commercial benefit in the airport operations, but Kabul airport would provide a key source of intelligence on movements in and out of the country, Western officials say.

The sources said UAE airlines, which have not flown to Afghanistan since the IEA takeover last year, were expected to resume flights to Kabul and possibly other Afghan airports after the deal was finalized, read the report.

Other airlines, who too have stayed away, could also again operate flights if the UAE deal can address substantial security concerns, including the threat posed by the Afghan branch of the Islamic State whose targets have included the IEA.

In the months leading up to the ground services being awarded to the UAE, the IEA repeatedly made unexplained changes to its team negotiating with Qatar and Turkey, the sources said.

Then the IEA sought to alter agreed terms by upping airport fees and taxes and weaken Qatar and Turkey’s control over revenue collection, they added.

A Qatari official had no immediate comment when contacted by Reuters. A Turkish official, speaking on condition of anonymity, confirmed talks with the IEA had stopped “some time ago”.

The UAE’S efforts are part of a quiet but assertive push by Abu Dhabi to expand longstanding ties with the IEA that have included government aid and diplomatic efforts in the months since the IEA took power in August.

Western officials say Abu Dhabi sees Afghanistan, which shares a large land border with UAE’s Gulf neighbour Iran, as part of its wider backyard and so believes it has legitimate interests in the country’s political and economic stability, Reuters reported.

But those officials also say the UAE is keen to counter the influence in Afghanistan of Qatar, a Gulf state lauded by Western nations for serving as gateway to the IEA but a rival of Abu Dhabi’s in a contest for regional influence.

Western officials worry that rivalry is now playing out in Afghanistan. The UAE, along with Saudi Arabia, Egypt and Bahrain, cut ties with Qatar from 2017 until 2021 as part of a long-running, bitter dispute between the two rich Gulf states that was largely resolved last year.

Qatar has hosted the IEA’s political office in Doha, long one of few places to meet the IEA and where the United States negotiated with the IEA to withdraw from Afghanistan.

Qatar also helped run Kabul’s Hamid Karzai International Airport after the collapse of the Western-backed government last year. Its state-owned Qatar Airways operated charter flights and Qatari special forces provided security on the ground.

But Qatar’s relationship with the IEA now appears strained, according to Western officials who say the IEA have become wary of being too dependent on any one nation.

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Afghanistan eyes direct Basmati rice imports from India amid tensions with Pakistan

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Afghanistan is exploring direct imports of Basmati rice from India as it seeks to diversify its supply sources amid ongoing tensions with Pakistan, according to a report by The Hindu.

The report said Indian exporters and Afghan importers are expected to meet next month to discuss expanding direct trade in Basmati rice, following preliminary talks between officials from both countries held last week with the facilitation of the PHD Chamber of Commerce and Industry.

Afghanistan consumes nearly 500,000 tonnes of Basmati rice annually and has traditionally relied on imports from neighboring Pakistan. However, industry sources told The Hindu that recent strains in Afghanistan-Pakistan relations have encouraged Kabul to seek alternative suppliers, including India.

Representatives of Afghanistan’s diplomatic mission in New Delhi reportedly took part in the discussions and expressed interest in increasing purchases of Indian Basmati rice. At present, some Indian rice reaches Afghanistan indirectly through traders in Iran and Dubai, a route that adds to transportation and transaction costs.

One proposal under consideration is to transport rice through Iran’s Bandar Abbas Port, subject to agreements between the two governments. The discussions are also expected to cover logistics, payment mechanisms, and the possibility of barter trade, with Afghanistan’s dried fruit exports to India seen as a potential component of future trade arrangements.

According to The Hindu, a direct trade arrangement could help India expand its share of Afghanistan’s Basmati market, which has historically been dominated by Pakistani suppliers.

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Afghanistan, Kyrgyzstan establish trade council to boost economic cooperation

The two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council.

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The Embassy of the Islamic Emirate of Afghanistan in Kyrgyzstan says the Afghanistan-Kyrgyzstan Business Forum has been held with the participation of officials from both countries.

According to a statement issued by the embassy, Acting Ambassador Abdul Shakoor Haqqani said Afghanistan supports strengthening bilateral trade relations and promoting joint economic initiatives between the two countries.

The statement added that the two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council. The council aims to strengthen ties between business communities, coordinate joint initiatives, and expand and support economic projects.

Meanwhile, Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment, arrived in Kyrgyzstan on Saturday at the head of a trade delegation to participate in the forum.

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Afghanistan invites Turkish investors to expand joint investments

Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.

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A high-level Afghan business delegation, led by the Chairman of the Balkh Chamber of Commerce and Investment, Mohammad Ibrahim Ghazanfar, participated in the Afghanistan–Türkiye Joint Business Council meeting in Istanbul, calling for expanded joint investment and stronger economic cooperation between the two countries.

According to a statement from the Balkh Chamber of Commerce and Investment, Ghazanfar invited Turkish investors and industrialists to explore investment opportunities across various sectors in Afghanistan, emphasizing the country’s potential for mutually beneficial partnerships.

The meeting brought together business leaders, investors, and private sector representatives from both Afghanistan and Türkiye to discuss ways to strengthen bilateral trade and economic ties.

During the event, several cooperation agreements were signed between Afghan and Turkish economic institutions. The agreements are aimed at expanding commercial relations, promoting joint investment projects, and enhancing economic cooperation between the two countries.

The meeting was chaired by Süleyman Güllü, Chairman of the Türkiye–Afghanistan Joint Business Council, and was attended by Mohammad Akbar Azimi, the Islamic Emirate of Afghanistan’s Consul General in Istanbul, along with a number of businessmen and investors from both countries.

Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.

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