Pakistani Tycoons Flock to Dubai Amid Political Uncertainty

13 Feb, 2024

Pakistani Tycoons Flock to Dubai Amid Political Uncertainty

During the past 20 months, Pakistani businessmen and affluent individuals have significantly increased their investments in Dubai's real estate and established export-import trading entities in the region, as reported by media outlets.

Anwar Khawaja, a Karachi-based investor with business interests in Dubai, remarked on the trend, stating that while Pakistani investments in Dubai's real estate are not surprising, the emergence of trade and business establishments by Pakistanis is noteworthy.

Khawaja highlighted that many prominent business figures in Pakistan have either partially or entirely relocated their operations to Dubai, resulting in a loss of income and job opportunities for the country. However, he acknowledged that some of these individuals have valid justifications for their actions.

The decision to shift businesses to Dubai is often attributed to political and economic uncertainties, coupled with escalating law and order issues in Pakistan, particularly in Karachi, where businesses frequently face extortion demands from various groups, as reported by Dawn.

Many influential business families have permanently settled in Dubai, where they have purchased properties, established international trade networks, and utilized the city as a base for Pakistani goods' trading activities, both exports and imports, as outlined by Dawn.

The conducive business environment in Dubai, characterized by streamlined processes for opening accounts and conducting trade activities, makes it an attractive destination for investment, especially in real estate, which is perceived as lucrative for wealth accumulation, Khawaja noted.

While some analysts advocate for the swift formation of a new government in Islamabad to mitigate uncertainties, others emphasize the urgent need for the incoming government to prioritize economic reforms to stabilize the country's economic indicators, according to Dawn's report.