Pakistan has been ranked among top three non-Arab foreign investors in United Arab Emirates (UAE). A leading property builder associated with Association of Builders and Developers (ABAD) informed that Pakistanis invested Dh30.64 billion in the real estate market of Dubai in the past five years. Pakistanis’ big investment in UAE resulted in increase of remittances received from UAE by 9.4 percent to $2.1 billion on year-on-year basis. According to the State Bank of Pakistan, UAE is the major remittance-sending country to Pakistan in 2014-2015 as it recorded the largest increase by 26.1 percent and Pakistan received $4.1 billion from overseas Pakistanis in UAE.
ABAD reported that positive investment trend was seen in Pakistan not only in big cities of country (Lahore, Islamabad and Karachi) but also in developing industrial towns like Sialkot, Hyderabad, Faisalabad and Gujranwala. As security situation has been improved in Pakistan after the military operation against terrorists, overseas Pakistanis took interest in making investment in real estate sector of Pakistan. However, Pakistani emigrants in the UAE and Gulf regions in large numbers are preferably making investment in Dubai as it returns good rental product.
Although the real estate industry of Pakistan has improved a lot basically due to investments made by overseas Pakistanis, the trend of investment in Dubai is said to be continued because it gives a healthy output. According to the real estate experts, this trend is in favor of Pakistan as more investment in Dubai will add extra income to overseas Pakistanis which will later return to Pakistan in the form of remittances. So the money will indirectly come to Pakistan at the end and will help the current account balance of Pakistan. For this reason, such investments by overseas Pakistanis should be appreciated as they are in the favor of Pakistan by other means.
No doubt investment in UAE is expensive and costlier than in Pakistan but as said above, the outstanding result of investment is the only thing that matters the most. So Pakistani investors in Dubai get the brilliant output and forget the preliminary sufferings. As dirham of UAE is attached with the US dollar, the increase in the value of dollar automatically improves the value of dirham. This is the reason that inspires majority of Pakistanis to invest in UAE real estate market as value of dirham is far better than one in rupees.