UAE continues attracting foreign investment, Pakistani nationals among beneficiaries
Business
People from Pakistan are opening more companies in Dubai as economy is crippled back home
LAHORE (Web Desk) – The United Arab Emirates is an economic miracle – a collection of tiny states turning into an economic power – with Dubai being the main attraction. It has been attracting foreign investors for over three decades now as they saw an opportunity to profit from the business-friendly environment.
With relaxed social environment, it became even more attractive and is now diversifying its economy even more. The latest example is of establishing a federal entity to regulate gaming and hired veterans of the US gambling industry to lead it.
Read more: Welcome to Ras Al Khaimah: UAE sets up gaming regulator, led by US industry veterans
Years-long speculation that the UAE would allow gambling – illegal across the conservative Gulf region – was put to rest when it was announced earlier this year that Ras Al Khaimah, one of the UAE's seven emirates, was set to open a roughly $3.9 billion Wynn Resort featuring a casino.
As far as Pakistan is concerned, Dubai has been one of the top destination as workers – mainly unskilled – started to flock to the Gulf State in 1970s as it started executing an ambitious plan to modernise the economy. This phenomenon was known as “Dubai Chalo” that can be translated as “Let’s Go to Dubai”.
But things started changing in 1990s when relaxed foreign exchange rules meant that those with resources were able to transfer money abroad easily at a time when Dubai [and UAE as a whole] had entered the second phase of development after developing the basic infrastructure by that time.
Hence, the Dubai Chalo slogan encompassed more and diverse people – this time the affluent classes and skilled labour.
The latest figures show that 3,395 new companies were registered by Pakistan nationals during the first half of 2023, representing an 59 per cent increase when compared with the same period of 2022. As a result, the total companies owned by Pakistanis has reached 40,315.
This spike has come at a time when cost of doing business in Pakistan has reached unsustainable levels while also showing why the country is witnessing shortage of dollar – world’s top currency.
Earlier, the United Nations Conference on Trade and Development (UNCTAD) had said in a report that Foreign direct investment (FDI) flows into the UAE rose 10 per cent in 2022 from the previous year to a record $23 billion at a time when FDI fell 12pc globally.
Read more: FDI shrinks globally but is up 10pc to $23bn in UAE during 2022: UN report
The UAE, the Arab world's second-biggest economy, attracted around 60pc of total FDI into the six-member Gulf Cooperation Council (GCC) bloc, which more than doubled to $37bn, UNCTAD said.
At the same time, the UAE is also a source of investment, with $25bn in outward investments last year, up 10pc on the previous year as the country is expanding its political clout at regional and global levels.
No wonder, passenger traffic at Dubai international airport leapt 50pc in the first half of the year, surpassing pre-pandemic levels.
Dubai, the world's busiest airport for international passengers before Covid-19, had 41.6 million visits in the six months to June, just over the number recorded in the first half of 2019, Dubai Airports had earlier said in a statement.
