Showing posts with label Dubai. Show all posts
Showing posts with label Dubai. Show all posts

Friday, May 20, 2022

Pakistanis Are Third Largest Foreign Investors in Dubai Real Estate

Pakistanis have invested $10.6 billion in Dubai real estate, ranking them as the third largest investors in the city on the Gulf. Indian investors lead Dubai real estate investments with $29.8 billion, followed by British investors' $14.7 billion investment. 

Wealth From Top 20 Countries Invested in Dubai Real Estate. Source: EU Tax Observatory

With at least $146 billion in foreign wealth invested, the Dubai property market is now the world's largest offshore investment market for foreign investors. It is now twice as large as the London real estate market in terms of wealth invested by foreigners through shell companies. There are nearly 20,000 unique foreign owners of Dubai real estate from Pakistan, the third largest number behind almost 35,000 Indian owners and about 23,000 owners from the United Kingdom, according to the EU Tax Observatory.


Unique Entities From Top 20 Countries Owning Dubai Real Estate. Source: EU Tax Observatory



The record flow of foreign wealth into Dubai real estate has drawn the attention of the FATF (the Financial Action Task Force), the global anti-money-laundering  watchdog. The UAE is now "under increased monitoring” (often referred to as the grey list) by the FATF.  It is widely accepted that real estate is used for money laundering and hiding wealth from tax authorities.

Money Laundering Risk. Source: FATF


Many rich Pakistanis, including top politicians and their family members, own real estate in Dubai, according to press reports. Most of the top politicians from Pakistani political parties like PPP, PML-N, ANP and MQM own Dubai real estate.  A 2020 Transparency International report said the following about Dubai's attraction to foreign unexplained wealth: 

"The UAE’s booming construction and real estate sector emerges as another major weakness. It accounts for a fifth of the Emirates’ GDP, but remains incredibly vulnerable to money laundering. Complex ownership structures can be used to obscure the identity of those buying property, as well as where their money is coming from".

"Despite the UAE’s role as a major international hub for finance and trade, the report concludes that authorities there are not cooperating with international partners. This could make the Emirates an attractive location in which “criminals could operate, maintain their illegal proceeds, or use it as a safe haven.”

"The FATF report confirms what investigative journalists, anti-corruption activists and whistleblowers have been saying for years: the UAE is a key piece in the global money-laundering puzzle. Its susceptibility to money laundering has seen it appear time and again in major cross-border corruption scandals". 

Saturday, October 2, 2021

Dubai Expo: India Prominently Displays Controversial Ayodhya Ram Mandir at Pavilion Entrance

India's pavilion at Dubai Expo 2020 has a large and prominent display of a miniature model of the controversial Ram Mandir at its entrance. Ram Mandir will replace the Mughal-era Babri Masjid that was destroyed by a Hindu mob in 1992.  It represents Prime Minister Narendra Modi's vision of India as a Hindu Rastra built on the ruins of the country's Muslim past. Inaugurating the Indian pavilion,  the country's trade minister Piyush Goyal told the media that "Prime Minister Narendra Modi personally gave us ideas and a lot of guidance on how to showcase India". 


Model of Controversial Ram Mandir at Dubai Expo


“It is a great opportunity to showcase emerging new India to visitors who are coming from all over the world. Prime Minister Narendra Modi personally gave us ideas and a lot of guidance on how to showcase India as a modern vibrant technology driven international economy," trade minister Piyush Goyal, who inaugurated the India pavilion on Friday, told reporters.

World Expos have a long illustrious history going back 170 years. They represent an opportunity for  participating countries to showcase their achievements in arts, sciences and technologies. First mechanical computer was shown at the 1862 London International Exhibition on Industry and Art. Alexander Graham Bell demonstrated the first telephone at Philadelphia in the 1876 Expo in the United States. 
Pakistani Pavilion at Dubai Expo

Pakistan has a large pavilion at Dubai Expo which will remain open for six months. It will highlight opportunities for trade, tourism and investment in the country. The focus on the first month of Expo 2020 Dubai at the Pakistan Pavilion is Balochistan.    

Pakistani pavilion attracted about 8,000 visitors when it opened yesterday. Speaking on the occasion, Pakistani representative Aftab Abro said: “The response has been outstanding and we have people appreciating all aspects of the pavilion, ranging from the colorful façade to the vibrant bazaar and also our custom-made Pakistani restaurant called ‘Dhaba’ that has been a great crowd-puller…We are grateful to the Expo 2020 Dubai for bringing the world to us so we could show them what Pakistan is all about. After taking their reviews, we were happy to learn that coming to our pavilion dispelled many misconceptions and doubts they had about Pakistan, due to some false information they got from unreliable sources. By physically coming to the Pakistan pavilion they said they experienced the real Pakistan.”



Sunday, January 17, 2021

Obituary of Zarin Musharraf (1919-2021): A Long Life Well-Lived

Obituary By Dr. Naved Musharraf

A Tribute to my mother (Mrs. Zarin Musharraf)

After orbiting the sun 102 times, Ammi’s long and glorious journey of life has come to end. I was fortunate enough to be with her in Dubai, to bid her farewell. She passed away peacefully in her sleep, January 15, 2021 at about 5:30 pm. 

Mrs. Zarin Musharraf with Mr. Musharrafuddin, a career diplomat in Pakistan Foreign Service


Longevity is one thing but quality of life is what really matters. In this respect, she was truly blessed. All through her life she had excellent health and never took any medicines. She had a full life and the means to enjoy all the good things it offered. Much credit goes to my grand father Qazi Fazle Ilahi, a man with a modern outlook on life. He rejected the prevalent societal norms of keeping our womenfolk in purdah (veil). A few that did were rebuked by likes of Akbar Ilahabadi who famously said: 

بے پردہ نظر آئیں جو کل چند بی بی یاں اکبر زمیں میں غیرتِ قومی سے گڑ کیا
 پوچھا جو میں نے آپ کا وہ پردہ کیا ہوا کہنے لگیں کہ عقل پہ مردوں کے پڑ گیا 

On she went to acquire higher education, doing MA previous from Lucknow University. Armed with modern education, she and Nuri Khala were the ‘bold and beautiful’,so to speak, and confident enough to chart their own life. 

After her marriage, ours was a matriarchal household. At least, that’s what I felt as I was growing up. Abba usually was the second fiddle. She ran the household with a firm hand while also being a professional woman and raising three children. Quite a task. But she fulfilled these dual roles admirably. 

She had a strong work ethic and loved working. She taught herself shorthand and typing which were important skills at the time. Our years in Turkey was a life altering event. Travel and a new culture, liberal one that Turkey was, broadened our horizons. She was at her prime of life. 

There was lot of partying, ballroom dancing, hunting trips and picnics and of course music which was her passion. Songs that she loved to sing on the harmonium, which stand out in my mind, are Barso Re from Tan Sen and all the Awara songs. 

The process continued when we came back to Islamabad where the annual New Years party was the event which brought our family together. What great memories of that era in Naghmazar. 

This is a mournful day no doubt. But let us celebrate her life. A life well-lived and all the great memories she left behind. She lived long enough to see her grandchildren growing up and their children too. What a wonderful life. 


Note: This post's author is Dr. Naved Musharraf, MD, Mrs. Zareen Musharraf's son and former Pakistani President General Pervez Musharraf's brother. Dr. Musharraf is a retired anesthesiologist in Chicago, IL. He graduated from King Edward Medical College Lahore in 1972.

Related Links:













Sunday, December 6, 2009

Dubai's Debt Crisis May Hurt Islamic Finance

Dubai's debt woes are bringing the world's attention to the Islamic finance, particularly the Islamic bonds known as sukuk. Sukuk are Sharia-compliant bonds that do not pay interest. Instead, the sukuk sellers pay the debt holders a share of the rent or capital gains from non-cash physical assets or share of the profits earned from businesses purchased with the money raised. Unfortunately for the Nakheel sukuk holders, the real estate bubble in Dubai that promised big gains from rents and sales has collapsed. And the Islamic bond holders are facing the possibility of a major default, resulting in a dramatic sell-off of sukuk in the last few weeks. According to Data Explorers, a company that tracks how much of a company's stock or bonds are out on loan, about 75% of institutions holding the sukuk sold their position between the end of August and the end of November. "It's an extraordinary sell-off in a bond so close to maturity, when there was no indication of a problem refinancing. The data suggests they had some information that it was a good time to sell," said Data Explorers managing director Julian Pittam.

Dubai's recent request for a debt standstill for Nakheel, one of its biggest state-owned companies, has raised the possibility of the largest Islamic bond or "sukuk" default on record, raising alarms in the global Islamic debt markets.

Nakheel, the Dubai developer behind many of the Emirate's high-profile projects, has to find $4bn to repay sukuk by the middle of this month, according to a report in Financial Times.

If Nakheel doesn't get creditors to agree to a stay on their claims, the Dubai company could be declared in default after Dec. 14, 2009. A group of the sukuk holders, including New York-based hedge-fund firm QVT Financial LP, have appointed London-based law firm Ashurst to represent them in the matter, says the Wall Street Journal.

A December 2006 report on the Nakheel sukuk sale in Euroweek, a trade publication for capital markets, said about 100 accounts bought the notes. Of those, more than half were banks. By geography, about 40% of the issue was placed in the Middle East and 40% in Europe.


Beginning modestly in 2000 with three sukuk issuers collectively worth US$336 million, the Sukuk bonds exceeded $75 billion last year. Issuance of sukuk - both in domestic and foreign currencies - has been quite common in some countries. The most active issuers of sukuk in the past year include Malaysia, the UAE, Saudi Arabia, Pakistan, Kuwait and Bahrain.

The potential Dubai default is likely to negatively affect nations in Asia and the Pacific region planning to raise money by offering sukuk. Indonesia, Pakistan and South Korea are planning to sell Islamic bonds offshore in separate offerings. Jakarta plans to sell up to $1 billion of global sukuk by the second quarter of 2010, according to people familiar with the situation. Pakistan, the only other Asian nation to have issued offshore Islamic bonds, has just $600 million outstanding from its 2005 sale. It is looking to raise $500 million in Islamic bonds next year.

The Karachi city government is preparing to issue $500 million in municipal sukuk by February, 2010, a Pakistan finance ministry official said in September this year.

South Korea is looking to sell what would be its first ever sukuk as it continues to refine its tax laws to facilitate issuance. It wants to attract capital from Islamic nations to diversify its funding sources and reduce its refinancing risks. The Korean government has been planning a road show in Malaysia and the United Arab Emirates.

Since the start of this year, $8.1 billion of Islamic bonds out of the Asian-Pacific region have priced, exceeding the $6.4 billion volume in the same period last year, according to data provider Dealogic.

Last year's global economic crisis brought attention to Islamic finance as an alternative for both Muslim and non-Muslim customers. In an article, the Vatican newspaper Osservatore Romano voiced its approval of Islamic finance. The Vatican paper wrote that banks should look at the rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis. “The ethical principles on which Islamic finance is based may bring banks closer to their clients and to the true spirit which should mark every financial service,” the Osservatore Romano said. “Western banks could use tools such as the Islamic bonds, known as sukuk, as collateral”. Sukuk may be used to fund the "car industry or the next Olympic Games in London,” the article said.

Investors have been attracted by Islamic banking's more conservative approach: Islamic law forbids banks from charging interest (though customers pay fees) and many scholars discourage investment in excessively leveraged companies. Though it currently accounts for just 1% of the global market, the Islamic finance industry's value is growing at around 15% a year, and could reach $4 trillion in five years, up from $500 billion today, according to a 2008 report from Moody's Investors Service.

The unfolding debt crisis in Dubai is the severest test yet of the short life of the Islamic debt markets. The process and the outcome of the ultimate resolution of the debt crisis in the tiny Gulf Emirate will have a lasting impact on the future of the entire global Islamic finance.

Related Links:

Trillion Dollar Halal Business

Sukuk.me

South Asians Flee Dubai

Nakheel Saw Unusual Selling

Islamic Finance Structures 101: Mudarabah

Pessimism is the Ultimate Kufr

Nakheel Sukuk Saw Unusual Selling

July in Dubai

Saturday, August 1, 2009

July in Dubai


My family and I stopped in Dubai for a three-day vacation in July on our way to Pakistan from the United States. As I was planning the Dubai stopover, a friend of mine who maintains an apartment in Dubai for his frequent business trips there heard about it, and offered to me the use of his apartment and his driver for the duration of our stay. This friendly gesture proved to be extremely convenient and valuable for us. Not only did the driver meet us at the airport upon arrival, he stayed with us and showed us around the usual places such as Palm Jumeirah, Burj ul Arab, Atlantis hotel and resort, various shopping malls, etc. He also arranged for a desert safari for us. In addition to the tourism, my family and I got a chance to meet an old friend of mine and his family, who have been settled in Dubai for the last thirty years. He heads the sales office of a major European company there.

Our Dubai arrival was very smooth. The plane landed at 4AM, about a half hour earlier than scheduled, and the immigration and customs procedure were very quick and efficient. As we came out of the airport terminal building, our eyeglasses were all fogged up by the heat and humidity of Dubai. We had to take them off to look for the driver who was supposed to receive us. He did arrive shortly after, and took us to the apartment and got us settled in there. On our way, we heard the muezzin's calls for the morning prayers from several mosques, reminding us that we were in a Muslim nation. We stopped at a Pakistani restaurant, and picked up a breakfast of desi omelets and paratha and ate at the apartment.

After resting for a few hours, we ventured out to the Dubai city mall. As we drove from the apartment, the city appeared to be enveloped in a rather thick haze that the driver suggested was dust. The roads were wide, and we could see many shiny new buildings, and few cranes on either side of the road. The traffic seemed fairly light for a normal business day. We headed to the Mall's food court for lunch. Many of the restaurants were familiar, including KFC, Burger King, Krispy Kreme and Subway, but we decided to go for the middle eastern fare at a Lebanese place. The food was quite good and reasonably priced. Since I needed a GSM cell phone and a local SIM, the driver took me to a phone company outlet, where an Indian gentleman was kind enough to suggest buying at Carrefour at a much better price, which I did. The cell phone was activated within an hour after installing the SIM and I was able to make several calls, including overseas calls.

The mall has many European stores selling designer merchandise, along with many small stores carrying all kinds of things ranging from apparel to jewelry, shoes, flowers, toys, electronics and food items. The stores selling expensive European designer apparel and accessories such as expensive bags, shoes and jewelry appear to be particularly favored by the rich Emirati women who are quite fashion-conscious. One could see glimpses of many of them, even though some were covered from head to toe, wearing expensive designer stuff visible underneath their black covers.

In the evening, my wife and daughters checked out some of the desi apparel and jewelry stores, and later we visited my old friend's apartment. He had arranged for dinner at a restaurant called Barbecue Delight that offered a delectable buffet with a wide selection including chicken tikka, seekh kabab, nihari, naan, biryani etc. We enjoyed the food and talked about how things are going in Dubai. He confirmed for us what we had heard and observed; the business is significantly down from a year ago, the rents have come down, the real estate prices are slipping, many people have lost their jobs and left the Emirate, some with the keys in their cars abandoned at the airport. It was reported earlier this year that Dubai police have found at least 3,000 automobiles -- sedans, SUVs-- abandoned outside Dubai International Airport in the prior four months. Dubai and other emirates in the UAE have been heavily criticized for their labor laws that badly treat the poor immigrant labor building the infrastructure. In 2007, the New York Times reported that "after several years of unprecedented labor unrest, the government is seeking peace with this army of sweat-stained migrants who make local citizens a minority in their own country and sustain one of the world's great building booms. Regulators here have enforced midday sun breaks, improved health benefits, upgraded living conditions and cracked down on employers brazen enough to stop paying workers at all."

There have also been reports of bailout of debt-ridden Dubai by Abu Dhabi recently, when Dubai was unable to honor a $10 billion bond in June, 2009. Another default is likely on a $10 billion bond coming due in December this year. Dubai has a reported debt load of over $80 billion that must be handled even as the property values continue to fall. These issues of debt and falling property prices will continue to be a drag on Dubai’s recovery. However, as the crisis unfolds, Dubai does have an advantage: no other city in the Middle East has the vision or the infrastructure to act as a services hub for the rest of the oil-rich region, which is expected to rebound from this global recession faster than other areas. With $600 billion of foreign exchange reserves and sovereign investments, the United Arab Emirates, of which Dubai is a part, has considerable resources to support Dubai's recovery.

Continuing our vacation the next day, we saw more malls including the Mall of the Emirates and Ibn Batoota mall. These malls did not seem crowded. But there were quite a few kids at the indoor ski resort at the Mall of the Emirates. The artificial ski slope seemed to be fairly tame, like a beginner bunny slope at ski resorts in the Sierras, perfect for the curious young ones wanting to explore skiing and snowboarding. We then went to see the newly built Palm Jumeirah, a man-made island about 5 km in diameter. It covers an area of 600 hectares and was reclaimed from the sea. Once complete, the development will increase the Dubai shoreline by 75 km. We saw a lot of apartments and villas on Jumeirah that appear to be empty. Many are said to have been bought by foreign, non-resident speculators who who were hoping to make a quick buck by flipping these properties prior to the bubble burst.

While most environmentalists believe Palm Jumeirah is a disaster, it is a great engineering feat and aesthetically quite pleasing, particularly the Atlantis hotel and resorts are beautiful. There is a very impressive aquarium inside Atlantis that features live sharks. But there are persistent concerns that most of the reclaimed development will come under water as the sea level rises with global warming later this century.

We headed out to Sharjah for the desert safari in the afternoon. We were driven in a Toyota Landrover, and as we approached the desert, the driver partially let out the air from the tires to get better traction on sand. It was quite a thrill ride over the sand dunes and felt much like a roller coaster ride. The driver drove up to the top of the sand dunes, and then rapidly came down the other side, slipping and sliding all the way.

Following the sand dune adventure in Sharjah, there were camel rides, dinner and belly dance at a camp in Dubai. The driver explained to us that the camp is located in Dubai because the Emir of Sharjah has forbidden drinking and dancing in his emirate.

It was an enjoyable few days for us in Dubai. It's an emirate like no other, allowing night clubs to operate along with its many mosques. In spite of its current economic difficulties and concerns about labor practices, it has the potential to come back strong because of its multiple advantages, such as many first-world businesses, excellent infrastructure and its ambitious leadership. It represents a place where the average people of South Asia and the Middle East can get a taste of how the other half in the first world lives, and hope to aim higher to improve their own lives in their native lands.

Related Links:

Dubai Incorporated

South Asians Flee Dubai as Economy Slows

UAE Investments in Pakistan

Global Warming Impact

Bye-Bye, Dubai

Tuesday, March 17, 2009

Foreign Worker Expulsions Hit South Asia


As the global economic crisis continues to take its toll in US, Europe, Middle East and East Asia, South Asian workers overseas are being let go in large numbers

Faced with rising unemployment in Malaysia, the Kuala Lumpur government on Tuesday said it will reduce the number of foreign workers in the country to 1.8 million by 2010 from the present over two million. This decision has serious implications for tens of thousands of South Asians, mostly from Bangladesh, India and Nepal, who currently work in the island nation.

Malaysian minister Syed Hamid Albar said the authorities had managed to reduce the number of foreign workers by 60,000 since last March, according to media reports. Last week, the minister ordered the cancellation of 55,000 visas granted to Bangladeshis in 2007, eliciting protests from Bangladesh.

Though reliable unemployment figures are hard to find in the United Arab Emirates, there is evidence to suggest that joblessness is rapidly growing in the Gulf region. Dubai police have found at least 3,000 automobiles -- sedans, SUVs, regulars -- abandoned outside Dubai International Airport in the last four months. Police say most of the vehicles had keys in the ignition, a clear sign they were left behind by owners in a hurry to take flight. It is believed that the owners of these vehicles are mostly foreign workers from South Asia who have lost their jobs after Dubai's real estate crash, according to a DNA report.

As unemployment surges around the world due to the global economic crisis, the South Asian nations relying on large remittances from their nationals overseas will be particularly hit hard.

The United States government announced that employers cut another 651,000 jobs last month, driving unemployment up to 8.1 percent. Job losses in December and January were even higher than previously reported. There is anecdotal evidence that many of those losing jobs in IT and high-tech sector are H1-B visa holders. Laid-off foreign workers are scrambling for temporary visas and seeking advice from immigration attorneys about how long they can legally stay in the country while hunting for jobs.

In Asia, in China, the urban unemployment rate officially stands at 4.2 percent. However, the Chinese Academy of Social Scientists says it is closer to 9.4 percent. In China, rural unemployment is not measured because of the difficulty of doing so.

Also in Asia, in Japan, unemployment hit 4.4 percent by the end of 2008, rising at its fastest rate in 42 years. Growing lines at food banks have been one result.

In India, unemployment officially stands at 8.2 percent. However, that number is thought to largely reflect unemployment in the organized sector of the economy, which comprises just 10 percent of the country’s workforce.

In Africa, in South Africa, economists expressed “surprise” as the unemployment rate fell to 21.9 percent at the end of last year, down from 23.2 percent several months earlier.

In Europe, unemployment in Germany stands at 8.5 percent, and in Britain, it is 6.1 percent, the highest in ten years.

In Latin America, Mexico’s unemployment rate is 4.3 percent. However, anyone in Mexico who is 14 years or older and who has worked one hour a week is considered “employed.”

Until recently, the general deterioration in regional trade balances in South Asia has been offset by large remittance inflows, which represent a sizable, and generally increasing share of GDP: during 2007, 14 per cent in Nepal, 8 per cent in Bangladesh and Sri Lanka, 4 per cent in Pakistan, and 3 per cent in India. The rising unemployment among South Asian workers overseas threatens this all-important lifeline, particularly in Bangladesh, Sri Lanks and Nepal.

According to the latest estimates of the World Bank, almost 40 percent of 107 developing countries are highly exposed to the poverty effects of the current economic crisis, less than 10 percent face little risk and the remainder are moderately exposed. Bangladesh, India, Nepal and Pakistan are ranked among the 43 countries most exposed to poverty risks, raising the horrible specter of further political instability and dangerous social strife in a very important region of the world.


Related Links:

Malaysia Pulls Visas for 55,000 Bangladeshi Workers

Unemployment surges around the world

South Asian Exodus from Dubai

World Economy Worst in Sixty Years

Global Economic Crisis and Growing Poverty Risks

Friday, January 16, 2009

South Asians Flee Dubai as Economy Slows


Dubai police have found at least 3,000 automobiles -- sedans, SUVs, regulars -- abandoned outside Dubai International Airport in the last four months. Police say most of the vehicles had keys in the ignition, a clear sign they were left behind by owners in a hurry to take flight. It is believed that the owners of these vehicles are mostly foreign workers from South Asia who have lost their jobs after Dubai's real estate crash, according to a DNA report.

Dubai and other GCC countries are planning deficit-spending to stimulate their economies in 2009. Dubai will raise its budget by 11% for fiscal 2009. The city-state's finance department estimates the new spending will result in a modest fiscal deficit, Dubai's first ever. Other Gulf governments, including Saudi Arabia and Oman, have announced recently they will risk deficits next year instead of cutting back on spending, according to the Wall Street Journal.

Analysts have raised concerns about the large debt load Dubai has taken on in recent years to finance its explosive growth, mostly in real estate. Dubai is one of seven semiautonomous emirates that make up the United Arab Emirates.

Credit-rating agencies recently have revised downward the outlook -- and in some cases, the credit rating -- for a handful of Dubai-controlled corporations. Dubai doesn't have its own sovereign-debt rating. The city-state doesn't pump much oil itself, so it has depended on attracting foreign investment, especially from its oil-rich neighbors, and borrowing to finance growth.

The contagion that started on Wall Street in 2008 is fast spreading around the globe. The deepening recession in the United States and the end of speculative bubble has brought the oil price down to below $40 a barrel, down from $150 a barrel a year ago. The US consumer price index dropped 0.7% in December, 2009 from the previous month. Consumer prices rose just 0.1% compared to December 2007, the lowest calendar-year increase since 1954 and well below the Fed's 1.5% to 2% preference over the long run. The CPI swelled 4.1% in 2007. The core CPI, in contrast, was up 1.8% last year, though it did fall 0.3% on an annual basis during the fourth quarter.

A large number of families in Bangladesh, Sri Lanka, India, Nepal and Pakistan depend on remittances of tens of billions of dollars from workers in the oil-rich states.

UAE investors alone have invested over $13b in Pakistan during the last few years. The deteriorating economy of the oil-rich Arab nations will adversely impact foreign investments in South Asia in general. Major real estate developments by companies such Abraaj and
Emaar in India and Pakistan are likely to be delayed or scrapped.

While the oil price declines are going to spell significant relief for South Asians, the loss of remittances and foreign investments will also hurt their economies. It's too early to tell if the net effect will be positive, negative or zero.

Thursday, January 31, 2008

Emaar Boss Bullish on Pakistan

Talking with CNBC today, Mohamed Ali Alabbar, Chairman of Dubai-based Emaar Properties, said he believes Pakistan represents a great investment opportunity for his company as it goes global. In fact, he repeated it twice to convince Erin Burnett, the CNBC anchor, who appeared surprised. He further said Emaar sold a major project yesterday within hours of launch in Pakistan.

A massive real estate project valued at $43b by Emaar is underway in Pakistan to develop two island resorts near Karachi. This is Emaar's single largest project and supersedes the $26.7 billion King Abdullah Economic City project in Saudi Arabia announced in 2006. This project will include office buildings, hotels, apartments, shopping malls, restaurants, golf courses, and beaches. The two islands will be self-contained cities spread over 30,000 acres of land.

Emaar has already energized the Pakistani economy with development projects worth $2.4 billion. Emaar has unveiled its first master planned community in the country — Canyon Views in Islamabad. The company has also announced the highlands project in Islamabad and Crescent Bay in Karachi. It has also signed a memorandum of understanding (MoU) with Port Qasim Authority for a mixed-use land development comprising residential, retail, commercial and hospitality components.

Another Dubai-based company, Abraaj Capital, has acquired land in Karachi's financial district to build Karachi Financial Towers (twin-towers) to cater to the booming banking sector in Pakistan.

Apart from creating new job opportunities for Pakistanis, these projects will support ancillary industries and strengthen foreign investment inflow into the country.

Arif Masud Naqvi Vice-Chairman of Dubai based Abraaj Capital said that Pakistan is a country of enormous business potential, and investors are comfortable and see opportunity rather than risk.