In the face of uncertainty, Pakistani enterprises choose Dubai
According to market sources, during the last two years, wealthy Pakistani individuals and businesspeople have not only made significant real estate investments in Dubai but have also set up export-import trading houses there.
Anwar Khawaja, an investor from Karachi who also has companies in Dubai, stated, “It is not surprising that Pakistanis have been investing in Dubai real estate, but important is the establishment of trade and business houses by Pakistanis.”
He claimed that “many Pakistani business tycoons have moved their operations, either fully or partially, to Dubai, depriving the nation of revenue and jobs.” He did note that many have a valid reason, though. The corporate community in Karachi, which frequently pays “extortion money” to various groups in the city, was alarmed by the political, economic, and law and order situation, as well as the declining state of affairs.
According to him, wealthy families have made Dubai their permanent home, bought homes, and started doing business internationally. They also serve as a hub for the import and export of Pakistani goods to other nations.
“Trading from Dubai is simple because creating accounts for imports or exports is not difficult. They make money and invest in Dubai, especially in real estate, which he described as the “paradise for making money.”
Pakistanis are the third-largest real estate investors in Dubai, having made $10.6 billion in real estate purchases, according to a report published by the EU Tax Observatory in the middle of 2022. With $29.8 billion invested in Dubai real estate, Indian investors led the way, followed by British investors with $14.7 billion.
The same survey states that there are over 20,000 distinct foreign owners of Dubai real estate from Pakistan, making them the third largest group after approximately 35,000 Indian owners and roughly 23,000 owners from the United Kingdom.
The Dubai real estate market is currently the largest offshore investment market for foreign investors worldwide, with at least $146 billion in foreign money invested. In terms of foreign capital invested through shell firms, it has now doubled in size compared to the London real estate market.
While some observers said that the only way to end uncertainty was to quickly form a new administration in Islamabad, others stated that in order to improve economic indicators, the new government would need to operate like a war machine.
The first battleground for the incoming administration should be inflation and foreign exchange reserves. The system’s true needs, however, are to address low growth, productivity, and revenue; increase exports, entrepreneurship, and infrastructure; and prioritize skills, education, population management, and inequality, according to Tresmark CEO Faisal Mamsa.
Currency traders predict that the rupee would remain range-bound over the next 15 days, despite the business community’s concerns over the split mandate and the continuous political unpredictability.
“We will see more exporters selling forward as forward premiums are attractive, but only in the 15- to 60-day tenors,” Mr. Mamsa stated.
After the elections, the market anticipates increased bilateral and multilateral flows, and even though there might be bumps in the road during the upcoming IMF review, a successful payout is anticipated at the end.
Having said that, there isn’t much room for growth, and any increase above 276 will negatively impact the nation’s exports. This month, the rupee is expected to trade between 278 and 282, according to Mr. Mamsa.
I am a dedicated student currently in my seventh semester, pursuing a degree in International Relations. Alongside my academic pursuits, I am actively engaged in the professional field as a content writer at the Rangeinn website.
