The prospect of strong capital and above-average rental returns has seen investment flow from Pakistan to Dubai for almost two decades now.
Given Dubai’s growth prospects and the existing ties between the two nations, cross-boarder investment is set to continue for many years to come too.
For many years, Pakistan has been a powerhouse in the Dubai real estate market, consistently ranking as one of the top sources of overseas investment. Pakistan, alongside India, the UK, Saudi Arabia, and Iran, has deep historical, cultural, and economic ties with Dubai, making it a natural partner in the city’s booming property sector.
These five nations collectively own nearly half of all offshore residential real estate in Dubai, underscoring the magnitude of their investment. The value of foreign-owned real estate in Dubai surged by almost 25% between 2020 and 2022. In particular, Pakistani investors now hold close to USD 9 billion worth of property in Dubai, a testament to their robust and growing presence.
The enduring interest of Pakistani investors in Dubai’s property market is not just about numbers; it reflects a strategic move to capitalise on Dubai’s dynamic and lucrative real estate environment.
Sultan Butti bin Mejren, director-general of Dubai Land Department stated: “This positions Pakistani investors among the highest investing foreign nationalities in Dubai’s real estate sector. This underscores the attractiveness of the investment options that Dubai offers Pakistani investors, especially when it comes to high return on investment and the preservation of real estate rights.”
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While Pakistan’s real estate market shows promising growth, it’s understandable why investors seek to diversify into Dubai’s dynamic and robust property market, which offers higher returns and stability.
As well as the obvious appetite for real estate, Pakistan and Dubai share a strong history of economic co-operation and a blossoming bilateral trading relationship.
Pakistan and the UAE have a strong trade relationship, with the UAE being one of Pakistan’s largest trading partners. In 2022, Pakistan exported USD 2.58 billion to the UAE, and the UAE exported US 5.8 billion to Pakistan. The main exports from Pakistan to the UAE were refined petroleum, rice, and bovine meat, while the main exports from the UAE to Pakistan were crude petroleum, refined petroleum, and propylene polymers.
The UAE is one of the largest countries in terms of investment in Pakistan and in terms of trade in the Middle East and Africa. The UAE Foreign Trade Report showed that the public and private sectors invested more than USD 10 billion in Pakistan during the past two decades.
Dubai’s real estate market has witnessed tremendous growth in 2022, 23 and 24, building on the momentum from the early pandemic recovery.
Investor sentiment from Pakistan remains strong, with population growth in Dubai sounded as the main reason to expect above global prime returns to continue.
The Dubai 2040 Urban Master Plan serves as a government-endorsed roadmap, shaping the emirates development over the next 20 years. Emphasising sustainability and quality of life, the plan aims to fulfill the government’s vision of transforming Dubai into the world’s premier city to live in. As the seventh plan since 1960, it aligns with Dubai’s strategic economic goals and future requirements, incorporating detailed strategies, guiding principles, policy directives, and initiatives. The implementation of this plan is phased to accommodate the anticipated population growth, which is projected to increase from 3.3 million to 7.8 million by 2040.
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