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Dubai Property Loses Its Safe-Haven Appeal
🇵🇰 Pakistan /Economy & Trade

Dubai Property Loses Its Safe-Haven Appeal

From Dawn · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Property and currency market sources say the Gulf war has curbed the movement of suspected illicit funds from Pakistan to Dubai.
  • Money already invested in Dubai is reportedly becoming difficult to recover, while some funds are returning to Pakistan and flowing into Karachi property.
  • Builders’ association chairman Hassan Bakhshi said about $60 million in illegal or black money was previously generated in Pakistan each month and invested in Dubai.

Dubai’s reputation as a safe haven for Pakistani black money is under pressure, with the Gulf war disrupting the flow of funds and leaving some existing investments stuck, according to property and currency market sources.

Thousands of Pakistanis have invested hundreds of millions of dollars in Dubai, particularly in real estate. Pakistan was identified twice as the second-largest foreign investor in Dubai property, and illicit money from Pakistan was widely believed to have helped drive prices higher.

Hassan Bakhshi, chairman of the All Pakistan Builders Association, said, “About $60 million in illegal (or black) money is created in Pakistan per month and has been invested in Dubai, but this has now stopped.”

Currency dealers said the direction of money flows has reversed. Funds held in Dubai are difficult to recover during the ongoing war, while money returning to Pakistan is being diverted into property in the country, contributing to a rise in Karachi’s real-estate market.

About $60 million in illegal (or black) money is created in Pakistan per month and has been invested in Dubai, but this has now stopped.

— Hassan BakhshiThe All Pakistan Builders Association chairman described the reported halt in Pakistani illicit-money flows into Dubai.
About this summary

Originally published by Dawn in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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