This qualitative study looks at Surakarta's paradiplomacy with the United Arab Emirates (UAE) and how it influences development in the region. It talks on UAE investments in the Sheikh Zayed Grand Mosque, a $15 million infrastructure grant, and the Emirates-Indonesia Cardiology Hospital. Using Kuznetsov's (2014) paradiplomacy framework, the study looks at how these projects, which were made possible by Mayor Gibran Rakabuming Raka's visit to Abu Dhabi in 2022 and are supported by the Indonesia-UAE Comprehensive Economic Partnership Agreement (IUAE-CEPA), help the economy grow, people from different cultures get to know each other, and people get along with each other. Interviews with the head of Bapenda and local business owners on May 28, 2025, as well as document analysis and participant observation, demonstrate that the mosque brought in three million tourists in 2023, which improved MSME revenues by 30–50%. In 2023, investments also reached Rp 917.7 billion. There are issues with rules, land, and public opinion, but there are also opportunities in religious and medical tourism. The study adds to the body of work on paradiplomacy by showing how subnational agencies perform in unitary nations and making proposals for digital diplomacy, infrastructure, and community involvement. Other Indonesian city can apply the model from Surakarta to help with long-term prosperity and the country's foreign policy goals.