Dubai property no longer safe haven for Pakistani investors

KARACHI: The ongoing war in the Gulf has significantly impacted the flow of black money from Pakistan to Dubai, according to sources within the property and currency markets. Despite thousands of Pakistanis investing hundreds of millions of dollars in Dubai, particularly in property, the situation has reversed. Currency dealers revealed that illegal or black money creation has ceased in Pakistan due to the war, leaving Dubai with stuck funds.

This shift in black money has led to a property rally in Karachi, with higher remittances from Dubai reflecting the return of liquid assets to Pakistan. The Gulf war has altered Dubai's appeal as an investment and tourism destination, causing a reversal of funds invested in property. Property prices in Defence have jumped by 50-60 percent following the start of the war, as the property title remains safe from double filing or fake dealing.

Many tech companies also shifted to Dubai due to its business-friendly environment before the war, but are now also moving abroad due to connectivity issues and tax authority interference. The situation is forcing thousands of Pakistanis to try and recover their investments in Dubai, as the war situation persists. Currency dealers predict that once stability returns, hundreds of millions of dollars will return to Pakistan from the Gulf, as Dubai's confidence among foreign investors has been shaken.