Super rich Pakistanis own properties worth more than Pakistan’s dollar reserves in offshore real estate market of Dubai.
Two numbers represent the problem Pakistan is suffering from. Consider the depleting foreign exchange reserves of the country which many fear poses the risk of default and the super rich Pakistanis who own properties worth billions of dollars in offshore real estate market of Dubai.
Pakistan’s foreign exchange reserves stand at $10.16 billion which is equivalent to less than two months of import. Moreover, there is every chance that the economy may default or face a Sri Lanka type situation if reserves continue to fall.
The other figure is the value of real estate owned by Pakistanis in just Dubai. Nearly 20,000 Pakistani investors own a whopping $10.632 billion in Dubai’s real estate sector.
This was revealed by leaked database the amounts the foreign real-estate investments in the emirate, one of the most opaque financial hubs in the world.
An EU Tax Observatory Working Paper titled Who Owns Offshore Real Estate? Evidence from Dubai analyses a dataset capturing the ownership of about 800,000 properties in Dubai.
The research paper states that at least $146 billion in foreign wealth is invested in the Dubai property market and half of the offshore Dubai real estate is under the ownership of people from the UK, Pakistan, India, Saudi Arabia, and Iran.
The main owners of Dubai real estate in absolute terms are large neighbouring countries (such as India, Pakistan, Saudi Arabia, Iran, Russia).
About 90% of the population living in the UAE are immigrants, with the bulk coming from South Asia.India is the country with the largest ownership both by value and number of owners.
34,876 Indians have 68,759 properties in Dubai which is worth $29.8 billion and the second largest investor is the United Kingdom with more than 23,000 different UK owners and $15 billion in assets.
Nearly 20,000 Pakistanis own 38,907 properties in Dubai, worth almost %10.632 billion.