Over the past 20 months, Pakistani businessmen and wealthy individuals have been heavily investing in Dubai’s real estate and setting up export-import trading houses there, according to industry sources. This trend is not surprising, as many Pakistanis have been investing in Dubai’s real estate for some time. However, what is noteworthy is the establishment of trade and business houses by Pakistanis in Dubai. Many prominent Pakistani business families have shifted their businesses to Dubai, which has impacted the country’s income and job opportunities. Political and economic uncertainties, as well as the deteriorating law and order situation in Pakistan, have driven these businessmen to invest and operate in Dubai. They find it easier to conduct trade in Dubai as there are no issues with opening accounts for exports or imports. Additionally, Dubai’s real estate market is seen as a lucrative opportunity to make money.
Pakistanis have invested $10.6 billion in Dubai real estate, making them the third-largest investors in the Gulf city after Indians and British investors. The Dubai property market has become the world’s largest offshore investment market for foreign investors, with at least $146 billion in foreign wealth invested. As the new government comes into power, it is expected to focus on restoring economic confidence and improving economic indicators. This includes tackling inflation, increasing foreign exchange reserves, boosting exports, promoting entrepreneurship, investing in infrastructure, improving education and skillsets, controlling population growth, and addressing inequality. The business community is concerned about the ongoing political uncertainty, while currency traders anticipate the Pakistani rupee to remain range-bound in the next 15 days.
It is expected that more bilateral and multilateral flows will come in, and the next International Monetary Fund (IMF) review may face some challenges but is likely to conclude with a successful disbursement. However, the rupee’s appreciation above a certain level could adversely affect exports. The market expects the rupee to trade in the range of 278-282 this month.