Pakistani investors may lose billions in Dubai

ISLAMABAD: The Pakistan Economy Watch has said that international financial turmoil and receding oil prices have shaken the oil-rich Arab nations with Dubai among the worst hit.

Dubai, known as the safe heaven among investors, traditionally relies on realty, tourism and financial sectors that are badly hit due to global recession. It is no longer regarded as financially invincible and its boom is under threat, said Dr Murtaza Mughal, President Pakistan Economy Watch.

Dubai’s debt is much more than GDP, which is soaring at an alarming rate creating new financial challenges. The federal and state governments are also keeping critical data secret, which is adding to nervousness of investors.

Mughal said the situation had the pushed international and local investors to withdraw a minimum of 60 billion dollars from Dubai and flight of capital continued. He cautioned that Pakistanis should be vigilant before making any new investments.

Dubai has asked the UAE and Abu Dhabi, the richest among the seven units, for help but could get only 33 billion dollars. Some big international concerns, including banks, finance houses and developers have realized the situation and altered major investment plans. “Some institutions have dropped idea for investment in Dubai while others have started mergers,” he said, adding that the local property giants had started firing their employees.

Lending to the property sectors amounts to 17-20 percent of the total loans issued by the banks in Dubai and some banks are feeling pressure of the situation. The international turmoil has also cut the number of visitors to Dubai which is yet another blow to the city-state which saw the boom on weak foundation.

Source: The News, 23/10/2008

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  1. Building a Positive Relationship with Overseas Pakistanis Overseas Pakistanis Forum on 6th December 2009 in Dubai
    Prime Minister attaches special importance to Overseas Pakistanis
    Federal Minister for Overseas Pakistanis to Chair the session: Javed Malik

    (Dubai) Pakistan’s Ambassador at Large for Overseas Pakistanis, Javed Malik is organizing the first session of the Overseas Pakistanis Forum Entitled “Building a Positive Relationship between Government and Overseas Pakistanis”. The Forum will take place in Dubai on December 6th, which will be chaired by the Federal Minister for Overseas Pakistanis, Dr Farooq Sattar.

    “The Forum will act as a bridge between the overseas Pakistani Community and the Government in order to build a “positive partnership” between the community and the government. “Until now the role of Overseas Pakistanis has been limited only as a source of foreign exchange remittance, but they have a lot more to offer to their country. While living abroad have acquired skills, expertise, as well as reached positions of influence, or established themselves as leading businessmen. They have a huge potential, and they want to play a more active role in the nation building process. This Forum is the first step to reach out to this community, listen to them, address their issues, and collectively evolve strategies that are mutually rewarding.

    The Forum is being spearheaded by Javed Malik, however it will take its membership from the community living abroad by establishing committees in each region or country. It will give a voice to the Overseas Pakistanis living abroad and they will have a opportunity to be involved in the decision making process.

    We established the Pakistan International Council under the patronage and guidance of the Prime Minister and this Forum is a further step in this direction which caters to the Overseas Pakistani community. The Overseas Pakistanis Forum is starting with the UK Chapter as well as the Middle East Chapter and the first session will be in Dubai on 6th September for which the Federal Minister for Overseas Pakistanis is flying in specially to take part.

    Issues that will come under discussion would be as follows:

    • Better Education & Housing facilities for Overseas Pakistani Workers.
    • Facilities for Overseas Pakistanis while returning home. (Special Counters)
    • Incentives for Overseas Pakistani Businessmen
    • Special Opportunities for Highly skilled professionals
    • Creating Opportunities for Women and Youth.

    The Forum will be a permanent body associated with the Ministry of Overseas Pakistanis and will have the Federal Minister for Overseas Pakistanis as its Chairman. Ambassador at Large, Mr. Javed Malik is the vice Chairman and Secretary General, however and we will constitute Advisory committees that will take their membership directly from the overseas Pakistani community in each country, or region. The Forum is totally non-political and only aims to advise the government on the issues on behalf of the community. We are starting with the UK Chapter as well as the UAE Chapter as there is a large number of Pakistanis living here. We will also expand to other countries, he explained. I started my ‘listening to the community campaign” a few months ago in which I have been consulting with the various community members in order to better understand the issues, and make recommendations to the government for their solutions.

    The First session of the Overseas Pakistanis Forum will take place on 6th December and the Federal Minister for Overseas Pakistanis is specially flying into Dubai to chair the meeting.

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