hydrabadi_arab
Trusted Member
The Gulf war has slowed the movement of illicit funds from Pakistan to Dubai, while some Pakistani investors are bringing money back from the UAE and redirecting it into local property, Dawn reported, citing sources in the property and currency markets.
Around $60 million in illegal or “black” money is estimated to be generated in Pakistan each month and invested in Dubai, but this flow has now largely stopped, according to market sources.
Pakistanis have invested hundreds of millions of dollars in Dubai, particularly in property, with Pakistan having been identified twice as the second-largest foreign investor in Dubai’s real estate market.
Dubai had been widely viewed as a destination for funds generated outside Pakistan’s formal economy.
Currency dealers said the trend has reversed as the conflict has made it difficult for investors to recover funds held in Dubai. Higher remittances from Dubai indicate that Pakistani investors are sending liquid assets back to the country, they said.
The return of funds is also affecting Pakistan’s property market. Property prices in Karachi’s Defence area have increased by 50–60% since the Gulf war began, while prices in other parts of Karachi have risen by 20–25%, according to property dealers.
Trading activity has also increased, with both buying and selling gaining as liquidity improves.
Market sources said Pakistani investors were now trying to recover their investments from Dubai, where property prices have weakened amid the conflict.
Currency dealers expect hundreds of millions of dollars could return to Pakistan from the Gulf once the situation stabilises, arguing that the conflict has reduced foreign investors’ confidence in Dubai.
Around $60 million in illegal or “black” money is estimated to be generated in Pakistan each month and invested in Dubai, but this flow has now largely stopped, according to market sources.
Pakistanis have invested hundreds of millions of dollars in Dubai, particularly in property, with Pakistan having been identified twice as the second-largest foreign investor in Dubai’s real estate market.
Dubai had been widely viewed as a destination for funds generated outside Pakistan’s formal economy.
Currency dealers said the trend has reversed as the conflict has made it difficult for investors to recover funds held in Dubai. Higher remittances from Dubai indicate that Pakistani investors are sending liquid assets back to the country, they said.
The return of funds is also affecting Pakistan’s property market. Property prices in Karachi’s Defence area have increased by 50–60% since the Gulf war began, while prices in other parts of Karachi have risen by 20–25%, according to property dealers.
Trading activity has also increased, with both buying and selling gaining as liquidity improves.
Market sources said Pakistani investors were now trying to recover their investments from Dubai, where property prices have weakened amid the conflict.
Currency dealers expect hundreds of millions of dollars could return to Pakistan from the Gulf once the situation stabilises, arguing that the conflict has reduced foreign investors’ confidence in Dubai.
