Economic of UAE-Pakistan Bilateral Relations 

Economics of UAE-Pakistan bilateral relations is based on a strategic partnership owing to which both countries have been assisting each other in different sectors of survival and production in the past. Both the countries enjoy extremely well bilateral, political and economic ties and these would be strengthened further.

Under UAE’s Pakistan Assistance Program, 165 projects were launched in Pakistan in 2011. The UAE-Pakistan Assistance program created opportunities in human development, improved economic conditions, boost poverty alleviation, accelerated construction of roads and bridges, improved literacy rate and initiated constructing schools and colleges and extended humanitarian assistance in times of a natural disaster by providing shelter, food and healthcare to the displaced population.

Main Areas of UAE Pakistan Assistance Program

The UAE Pakistan Assistance Program has been focusing on four main areas of social re- development like health, education, water and infrastructure which has greatly benefitted its people, especially in flood-hit areas. UAE provided for the construction and re-habilitation of two bridges, 52 schools and 7 hospitals, as well as the implementation of 64 water supply schemes. Most of these mega projects of social uplift, education, water supply, women empowerment, health and infrastructure have been completed and operationalized. 

UAE’s humanitarian projects i.e., health and education, charity, women empowerment, water, roads and the last but not the least, environment in the country are the real beacon of hope for the needy people enabling them to turn tears into smiles and crises into opportunities.

UAE’s Valuable Economic Assistance

UAE has also been a major donor of economic assistance to Pakistan and has been appreciative of Islamabad’s role in the evolution of its institutions like Emirates, armed forces, police, health and education.

UAE: Pakistan’s Main Investor

UAE has been one of the main investors in the country in its different sectors i.e. infrastructure, real estate industry, banking, telecommunications, insurance, aviation and the last but not the least energy. According to official figures, UAE has more than GDP of $450 billion, 30 percent of which is generated from export of oil and petroleum products, while 70 per cent of the revenue is being earned from tourism, transport, plastic industry, renewable sources of energy and financial services etc. Its macro-economy prospects of 2017 and beyond are very strong and bright.

Pakistan’s Supportive Role in the Development of UAE

Pakistan was the first country to recognize UAE in 1971. Pakistan and UAE enjoyed very good relations and the latter had been carrying development projects worth billions of rupees across the country, besides welcoming Pakistani nationals to take up jobs in the UAE. About 1.4 million Pakistani expatriates are working in UAE and have sent $ 4.50 billion remittances in the current fiscal year.

Value of Long-Term Roadmap

The newly appointed UAE ambassador to Pakistan H.E. Hamad Obaid Ibrahim Salem Al-Zaabi while meeting with Prime Minister Shahid Khaqan Abbasi said UAE values its relations with Pakistan and looking at a long-term roadmap for strengthening economic relations between the two countries. The Prime Minister welcomed the new UAE Ambassador and underscored that the relations between Pakistan and UAE were defined by history, warmth and brotherly relations.

Ambassador Hamad Al-Zaabi thanked the Prime Minister for the warm welcome and emphasized that he had come with a very strong commitment to further strengthen relations between the two countries.

UAE Ambassador H.E. Hamad Obaid Alzaabi

The newly appointed Ambassador of the UAE Stressed that Pakistan and UAE Should develop a 10-year roadmap to benefit from potential areas of mutual cooperation and the UAE wanted to further enhance trade relations with Pakistan as both countries have great scope to promote trade in many areas. Since UAE is the most attractive country in the region for foreign direct investments (FDIs) owing to which he rightly advised private companies of Pakistan to actively participate in the Annual Investment Meetings and Expo 2020 in UAE to explore possibilities for enhancing their business prospects.

UAE’s Free Economic Zones and its Utility for Pakistan

UAE’s free economic zones are proving ample opportunities for FDIs and joint ventures for the public-private partnership due to which businessmen and investors of Pakistan must avail this golden opportunity to invest in it, he further added. He said that exchange of business delegations is important to explore new avenues of cooperation and assured that he would work with all the chambers of commerce and business community of Pakistan to promote connectivity between the private sectors of both countries.

Abu Dhabi Group’s Role in Pakistan’s Economy

Abu Dhabi Group is very active in Pakistan and already has large investment in Pakistan, including Bank Alfalah, United Bank Limited, Warid Telecom, Al Razi Healthcare and Wateen Telecom. Dhabi Contracting, had signed a MoU with Pakistani real estate tycoon Malik Riaz Hussain to build residential properties on an island in Karachi. According to official news, Abu Dhabi’s government has plans to spend $45 billion over up to 15 years on a real estate project in Karachi. The investment plans in Pakistan includes plans to construct a miniature seven wonders of the world, the tallest building in the world, a sports city, an education and medical city, an international city and a media city.

UAE’s Companies in Pakistan

During the 2004-2014 periods alone, the UAE’s public and private sectors invested more than around $4.50 billion in Pakistan which has now surpassed $6.50 billion. A number of UAE companies are currently operating in the country, including Emirates National Oil Company, International Petroleum Investment Company, Etisalat, Dana Gas, Al Ghurair, Emaar, DP World, Abraaj Capital, Thani, Danata, Atharihra Agricultural Company, Julfar, Emirates Investment Group, and Arab Company for Packaging and Al Nasser Holdings.

UAE-Pakistan Bilateral Trade

The people of Pakistan have a special affinity for the UAE, its people and its leadership. The bilateral trade between the two countries was about $7 billion in 2015. UAE and Pakistan enjoy cordial relations but their bilateral trade of over $8 billion is not reflective of the actual potential of both countries.

Bilateral trade between UAE and Pakistan has reached $8.3 billion (Dh30.4 billion), recording a significant 9.4 percent increasing during the last fiscal year 2016-17. Trade between the two countries stood at US$7.7 billion in 2015-16 but we have witnessed a positive development during the last year. Imports from UAE to Pakistan increased last year from $6.62 billion to $7.23 billion whereas exports from Pakistan to UAE have decreased about 1.83 percent from $1.08 billion to $1.06 billion.

Pakistan’s Workable Suggestion

For further increase in trade volume, Pakistan is working with the UAE authorities to increase export of fresh fruit and vegetable from Pakistan. Government of Pakistan is also finalizing plans to operate a speed vessel from Karachi to Dubai to bring perishable items within 48 hours, reducing the current sailing time of up to eight days.

For achieving the desired goal of greater socio-economic integration, high volumes of trade, connectivity and better political understanding both countries should focus on promoting strong connectivity between their private sectors and facilitate frequent exchange of trade delegations that would help in further enhancing current volume of bilateral trade. Moreover, the UAE acknowledges vast foreign direct investment and joint venture opportunities in infrastructure development, electricity generation, water desalination, agricultural-based industries, insurance and real estate in Pakistan.

Both countries should focus on developing strong linkages between their youth and women entrepreneurs by creating platforms like youth and women business councils that would help in promoting sustainable trade and economic relations between both countries.

Diversified Opportunities for UAE Companies in Pakistan

Being strategic partner of UAE, Pakistan offers great investment opportunities to the UAE’s investors in various sectors of its economy including infrastructure development, power generation, water management, agro industries and they should visit Pakistan to explore joint ventures (JVs) and investment. Aluminum products, horticulture, farming, dairy farming, livestock, financial sector, pre-fabricated houses and affordable low-income houses also offer good prospects for JVs between the two countries. Moreover, two countries should strengthen their SMEs to achieve more beneficial results. Furthermore, Pakistani nationals working in the UAE send US$4.5 billion in remittances each year from the UAE to their home country.

Dubai Land Department

According to Dubai Land Department (DLD) figure Pakistanis purchased 6,106 properties during 2015 as compared to 5,079 units last year, an increase of 20 percent. Around AED 8 billion ($2.178bn) worth of properties were purchased by Pakistanis during the year as compared to AED 7.588bn ($2.066bn) last year, up 5.43pc. According to the DLD’s report, the overall real-estate investment exceeded AED 135bn in 2015 (55,928 investors) as compared to around AED 109bn (41,715 investors) a year ago.

Pakistan-China Economic Corridor (CPEC)

Pakistan-China Economic Corridor (CPEC) provides tremendous investments opportunities for the UAE businessmen and investors. Pakistan has recently invited the UAE investors and companies to make use of investment opportunities under China-Pakistan Economic Corridor (CPEC), a great investment project of economic well beings for not only Pakistan but for all the regional countries of Asia. The UAE showed keen interest in increasing investment into Pakistan from an existing eight billion dollars level through exploring opportunities in various economic sectors.

Chief of Army Staff (COAS) General Qamar Javed Bajwa Visits to UAE

Chief of Army Staff (COAS) General Qamar Javed Bajwa have already visited twice in the UAE and met with high officials. He met with Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces Sheikh Mohammed bin Zayed Al Nahyan. Both discussed spectrum of bilateral relations and ways of enhancing them to serve the interests of the two friendly countries. During the said meeting, both discussed the means for the further strengthening of cooperation and coordination in the defence and military fields. The two sides exchanged views on regional and international developments as well as a number of topics and issues of common concern. During the meeting, it was also acknowledged that both Pakistan and UAE are vital players for the region.

During his maiden visit to the UAE, Chief of the Army Staff Qamar Javed Bajwa met United Arab Emirates Vice-President and Prime Minister and Ruler of Dubai Shaikh Mohammad bin Rashid Al Maktoum. During the meeting, both discussed relations between Pakistan and UAE and multiple issues pertaining to the military and the current situation in the region. The army chief lauded the development witnessed by the UAE in different fields. Both sides discussed ways of boosting bilateral relations and cooperation between both nations as well as a number of military issues and the region’s status quo.

Booming UAE’s Service Sector/Industry and Opportunities for Pakistani Investors

Booming UAE’s services sector offers befitting propositions for all the Pakistani investors and businessmen to invest in its diversified and dynamic services sector. The travel and tourism sector plays very important role in the macro-economy of the UAE which is estimated to reach over $56 billion in 2022 as new mega projects come to market, travel and tourism industry. It has further its drive of further diversification and consolidation of its national economy. According to Dubai Chamber of Commerce and Industry (August 2017) its total spending in the tourism sector is predicted to increase 4.5 percent year on year in 2017 to reach over $42 billion. In 2016, leisure travel spending in the UAE reached over $31 billion in 2016, accounting for 77 per cent of the UAE’s total tourism spending.

UAE’s Travel Market (2016-17)

Growth within the UAE’s travel market will likely be supported by several recently announced projects, including Marsa Al Arab, a $1.7 billion mega tourist resort near the Burj Al Arab, the new IMG Worlds of Legends theme park, a Formula One theme park at Dubai’s Motor City, Six Flags at Dubai Parks and Resorts, in addition to a number of planned shopping malls and cultural venues.

UAE: A Major FDIs Recipient (2016-17)

UAE is one of the major destinations of foreign direct investment in the continent of Asia, reflecting the ability of its economy to keep pace with international and regional developments. The UAE succeeded, over the past two decades, in creating ties and important international import links, due to its timely investments in technology and logistic services infrastructure and its accomplishments in strategic planning and policy adjustments which would boost further inflows of FDIs in the country. Moreover, public and private sector partnerships, which UAE has legislated will further contribute towards strengthening foreign direct investment in all parts of the emirate.

UAE Ministry of Economy (2016-17)

According to UAE Ministry of Economy foreign direct investment in the UAE increased by 33000 AED Million in 2016. Foreign Direct Investment in the United Arab Emirates averaged 34440 AED Million from 2007 until 2016, reaching an all-time high of 52100 AED Million in 2007 and a record low of 14700 AED Million in 2009. Pakistani businessmen and investors must avail this opportunity and plan to invest in the UAE for befitting propositions in the days to come.

The diversification of the UAE’s economy, advancing with the surging confidence across different sectors including real estate, tourism banking and the Expo 2020 projects, will contribute towards more foreign direct investments (FDI) influx into the country in the future.

AIM Investment Report (2016)

As per the AIM Investment Report (2016) the prevailing market conditions offer unmatched opportunities for the UAE’s economy, which remains the number one market in the region for foreign direct investments, attracting 61.6 per cent of all FDI projects in GCC countries in 2015.

UAE: Diversified & Dynamics

United Arab Emirates (UAE) is a role model for the regional as well as emerging countries in the world in terms of socio-economic prosperity, happiness, qualitative life, sustainability, law and order and the last but not the least diversification of economy, energy and productive channels. The UAE GDP increased more than 236-fold from Dh6.5 billion in 1971 to Dh 1,540 billion in 2014 which has been further strengthened and progressed due to government’s business and investment policies.

It has pioneer in regional space pursuits. It is hub of foreign direct investments. It is an ideal center of multiculturalism. It has already been ranked one the safest and happiest countries in the world. It has diversified economy which is smart too. It has unique national policy of diversification of energy resources in the region as well as in the world. Its service sector is flouring and adding its position in the overall GDP. Despite low oil prices in the region and world its macro-economy is stable and sustainable.

UAE has already started its journey of space, outer space and beyond Mars which is now in upswing. Its journey from sand to space agency is a miracle. Its leaders have strategic vision and its people are dynamic enough to achieve all the unrealized dreams.

UAE’s business and investment friendly policies have successfully transformed its national economy into of a knowledge-based economy. Now it is the ideal hub of all kinds of business and investment activities and operations. It is one of the ideal destinations for the interested businessmen and investors alike.

Its economy is the most liberal entity in the GCC and MENA. It is 2nd largest economy in the region in terms of volume. It is ranked first in terms of quality, performance and production too. Vision 2021 has transformed its economy and made it more attarctive, innovative, competitive and smarter.

Diversification of economy, energy and production has already made its macro-economy stable and sustained. Massive industrialization, rise to private sector, robust service sector, SMEs and rigorous commercial diplomacy has successfully mitigated the spillover effects of region and world’s weak economic conditions. Moreover, its resilient banking and financial sector provide the strategic cushion to finance many mega projects to create more and more jobs.

UAE’s Economics of Happiness

UAE is the one of the happiest countries in the GCC, MENA and of course the world which shows that it has economics of happiness where people always prefer over corporate profits. Its unmatched socio-economic development is vertical as well as virtuous. Its diversification of economy and energy resources is horizontal as well as harmonious.

UAE People’s Friendly Government 

UAE’s government is people friendly. It has strategic orientation too. It has clear and comprehensive plans to achieve desired goals of socio-economic prosperity, de-carbonization development of renewables and zero discrimination system and society. Creation of ministries of happiness and tolerance is a giant step in right direction. It means a lot to its government, system, people and elements of peace and harmony in the society. It would mean sustainable development, environment friendly policies, strengthening of pure Emirati values and above all promotion of good governance.

UAE: Most Politically Liberated Country

Politically, UAE is one of the most liberal countries in the region. Gradual politicization is on the right path in shape of regular Federal National Council Elections. It stimulates best understanding of national politics and of course policies. It upholds culture of accountability and transparency. It empowers Emiratis which is deep-rooted democracy of the UAE, a unique model. Moreover, political stability has made it heaven for businessmen, investors, workers, laborers, and tourists alike.

UAE: Apex of Humanity & Human Values

On the front of human values, UAE has par excellence. There is no issue of human rights violations as somewhat propagated by the biased Western media. Its judiciary is fair and free. Its legislations are workers friendly due to which it is the ideal destination for residency, talent, recruitment and performance in the world.

UAE: Land of Multiculturalism & Tolerance

Its tolerance level is unmatched. More than 200 different nationalities are working in the UAE which is the prime example of its official policies about interfaith harmony, peace and tolerance. Not a single decree and not a single incident is anti-racial ever happened/ reported in seven Emirates since inception. UAE stands for human development. It is the grand total of human values and humanity alike. There is no concept of gender discrimination throughout the country. All people, factions, groups, castes and colors have equal rights before the law and even “Emiratis” do not have any leverage what so ever. Law is supreme. No reporting of prejudice, discrimination and humiliation towards weaker sections of the society in the country. Expatriates are well protected and paid.

Free & Responsive Media

Its media (print & electronic) is free and interactive. National Media Council is the country’s leading regulatory agency to care media development in the country. It is the most technological orientation in the GCC/ MENA and can now compete easily to any world channel or media production house.

UAE: Land above Skies

UAE is the land of Burj Khalifa skyscraper the world’s current tallest man-made structure and futuristic land reclamation projects, such as the palm-shaped artificial Palm Islands. Its roads are the best in the world. Its seaports are among the best in the world. Its pursuits towards world class infrastructural development are unmatched and well acknowledged in the world. Dubai Expo 2020 is the sign of national pride and reflection of its readiness in the spheres of smart city, & technology, renewables, and the last but not the least, diversification.

Hottest Properties

Its properties are labelled the “hottest” in the world. Its people are acknowledged the most talented in the GCC/ MENA in the fields of innovation, conflict-resolution, technology, computer engendering, food and water security and above all scientific research.

Immense Social Development

Its society is development oriented. It is dynamic and determined. It believes in merit, fair-play and hardworking. It is highly educated. It is free from any kind of gender discrimination. Its women empowerment is the highest in the region. It is progressive and productive. Moreover, it is an open society which believes in globalization and meaningful interaction and dialogue.

Now, the UAE is blessed with so many martyrs who scarified their precious lives for the safety, stability, dignity and honor of their beloved country. They stood first for the greater cause of regional peace, harmony and terrorism. The whole nation salutes them. They are the real heroes.

Diversification of Economy

The UAE remarkable multi-sector development is a modern-age wonder. Indeed, the nation has come a long way since its inception. Diversification of economy promoted massive industrialization in the country due to which oil share to GDP has been gradually on the decrease. Now, non-oil ratio to GDP has reached to 68 percent which would be more than 80 percent till 2021.

The Best Health System & Policies

Its health care system is the best in the GCC, MENA and of course world. The UAE government has achieved commendable progress in the healthcare sector, making substantial efforts to provide modern medical facilities to Emiratis and expatriates alike. Healthcare is one of the foremost sectors where hundreds of hospitals and thousands of polyclinics have been established all over the Emirate. It has now become convenient for middle and low-income class to avail the best of medical facilities. Specialist Hospitals in metro cities possess technologically advanced healthcare facilities and world’s best qualified doctors.

Free & Independent Judicial System

In UAE, the writ of the state and effective judicial system is upheld with high reverence. Governments across the world should learn due lessons from these high-standards of governance. Even the West acknowledges that the security and safety across UAE are par excellence. Expatriates truly feel privileged to work, live and raise a family in a safe and stable environment throughout the UAE. They are happy to note the economic, social and technological developments of the UAE. It has become the ideal choice to work and plan a career among the Arab youth.

Strong Banking System

UAE’s banking system is stable and resilient. Compared internationally, the Emirate banking industry is highly sophisticated offering state of the art products and services in both consumer and corporate sectors. UAE banks are world’s most-capitalized and offer fully automated and secured banking platforms. Its prudent regulatory system has saved it from any kind of credit crisis in the country even in the ongoing global economic and financial crises. The robust Emirate banks have played a key role to support and enhance the UAE s economic growth consistently since its inception 1971.

Leading Player in Green Technologies

UAE is the leading player in the green technologies. Its strategic vision of renewable energy production has achieved great success throughout the world. Renewable energy gears the pace of development. It guarantees the survival of humanity on this planet. It protects the dreams of socio-economic prosperity, stability and sustainability. It provides essential inputs of industrial productivity, generation of employment, reduction of poverty and above all promotes qualitative life and renewable/ alternative energy is a value-addition.

Masdar

its renewables icon, Masdar leads the GCC, MENA and the world. Masdar City (solar energy project) is a key element of the “Abu Dhabi 2030 Plan” and the government of Abu Dhabi’s strategic policy framework. Shams-1 is the first full scale renewable energy plant in the Abu Dhabi and largest CSP plant in the world. It will generate 100 MW covering an area of 2.5 km, with plans to increase capacity to 2000 MW in the future. Hydrogen Power Abu Dhabi (HPAD) is a 60:40 joint venture between Masdar and BP to construct the world’s first commercial scale hydrogen fueled power plant, utilizing fossil fuel feed stock and CCS.

UAE: Champion of Commercial Diplomacy

Its rigorous commercial diplomacy has successfully increased its exports in all the continents of the world. Its industrial sector is robust and achieved high standard of productivity. Its SME sector is upbeat and progressive. Its travel & tourism industry has comparative advantage and increase its contribution to GDP with every passing day.

United Arab Emirates is on the path of gradual decentralization into a federal-type governance structure, in the form of seven entities, which has proven to be an ideal model for development and positive competition. Its successive leaderships wisdom has built the solid foundation, on which the UAE’s success is based, empowered further by a strong constitution. Now sky is not the limit, definitely Mars and beyond Mars is the new goal to be achieved in the years to come for the United Arab Emirates.

Concluding Remarks

UAE-Pakistan bilateral relations are strong, stable and sustained. Both countries value their strategic partnership for achieving greater regional connectivity, socio-economic integration, high inflows of FDIs, initiation of various joint ventures and above all further strengthening of military cooperation.

Both countries have economic game changers i.e., CPEC and EXPO-2020 owing to which both countries must study befitting propositions in the days to come. Private companies of both the countries should focus on preferential areas for their further investments in the future. Food security needs to be tapped in win-win proposition between UAE and Pakistan.

Further development of renewables has strategic orientation which must be jointly explored and tapped by both the countries in the days to come. Masdar input and cooperation would be decisive in the further development of energy cooperation between the two countries.

UAE is the pioneer of medical diplomacy which has even benefitted people of Pakistan by eradicating polio from Pakistan. The World Health Organization (WHO) has paid tribute to the United Arab Emirates for its pivotal role to eliminate all cases of polio around the world and especially in Pakistan. In Pakistan the campaign across the high-risk districts, referred to as the Emirates Polio Campaign, was launched under the directives from President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, and as part of an initiative of His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, to support Pakistan to eradicate the disease, said the international organisation. In the first five months of 2017 more than 10.5 million children received repeated doses of polio drops in the campaigns supported by UAE PAP.

Now, UAE is the top 20 competitive economies in the world and Pakistan’s economy is also booming which must have common points, policies, projects, programs for its convergence in various sectors of economy, education, infrastructure, energy, agro-economy, civil aviation, banking, insurance and the last but not the least, construction.

UAE is the first country in the region to ratify WTO trade deal. Meanwhile, the UAE remains one of the world’s top trading economies, ranking 20th globally and first in the Middle East and Africa in commodity exports. It also placed 19th internationally in commodity imports and led the Mena region in overall commodity trade, with regional exports totalling $265 billion to account for 1.6 per cent of the worldwide total in 2015, according to WTO figures. The Pakistani businessmen and investors must avail plan to get maximum advantage from UAE ratification of the WTO in order to increase volumes of bilateral trade in the days to come.

Prospects are bright and opportunities are ample for the further strengthening of UAE-Pakistan bilateral relations. Newly appointed UAE ambassador to Pakistan H.E. Hamad Obaid Ibrahim Salem Al-Zaabi has concrete plans for the next ten years of mutual cooperation, trade and commerce, investments, and initiation of joint ventures which need to be jointly explored and tapped.