The main reason they have backed off for now is there is no need after peace with Iran.
According to a UAE source close to the negotiations, the interim deal with Iran along with the direct diplomatic engagements the UAE has conducted have relaxed tensions between the gulf neighbors and contributed to the deal’s breakdown.
“At this point in time there is no need to acquire the weapons as our diplomatic efforts have succeeded,” the source said.
One industry source said the two sides had been unable to agree on price or close the gap on other aspects of the negotiations, including the industrial collaboration package.
UAE Backs out of Typhoon Discussions | Defense News | defensenews.com