Dubai property no longer safe haven
KARACHI: The Gulf war has curbed the outflow of black money from Pakistan to Dubai, while funds already invested are returning and being diverted into property in the country, according to sources in the property and currency markets. Thousands of Pakistanis have invested hundreds of millions of dollars in Dubai, particularly in property. Pakistan was identified twice as the second-largest…
Karachi: The ongoing Gulf war has significantly impacted the flow of black money from Pakistan to Dubai, causing a shift in the investment landscape. While Pakistanis have historically invested hundreds of millions of dollars in Dubai property, particularly in areas like Defence, where prices surged by 50-60% during the conflict, the situation is now reversing.
Currency dealers report that the $60 million in illegal money created monthly in Pakistan, which had previously been invested in Dubai, has now ceased. The war has tarnished Dubai's reputation as a safe haven for black money, with inflows into the country decreasing. This change in investment patterns has led to a struggle for Pakistanis to recover their investments in Dubai, as property prices in the region have plummeted to a minimum level.
Despite this, property dealers in Karachi report a rebound in property prices, with an increase of 20 to 25 percent in other areas, driven by improved liquidity and government efforts to boost the construction industry.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
