Dubai property no longer safe haven

Dubai property no longer safe haven.

Key points

• Shahid Iqbal Published September 1, 2026 Updated September 1, 2026 07: 41am.
• Property rates in Defence went up 50-60 per cent after the Gulf war kicked off.
• Shahid Iqbal is a reporter for Dawn based in Karachi with 38 years of experience covering politics and economics.
• Thousands of Pakistanis were using Dubai as a third country and conducting legal business with countries such as India and Bangladesh.
• "The higher remittances from Dubai reflect that Pakistanis are sending back their liquid assets to Pakistan, " remarked a currency dealer.

Shahid Iqbal Published September 1, 2026 Updated September 1, 2026 07: 41am. Join our Whatsapp Channel. Add Dawn as a trusted source.

While funds already invested are returning and being diverted into property in the country, as sources indicate in the property and currency markets, KARACHI: The Gulf war has curbed the outflow of black funds from Pakistan to Dubai.

Thousands of Pakistanis have invested hundreds of millions of dollars in Dubai, particularly in property. Pakistan was identified twice as the second-largest foreign investor in Dubai property. It was widely believed that black funds created in Pakistan had a safe haven in Dubai and was a catalyst for property rate hikes there.

"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, " remarked All Pakistan Builders Association Chairman Hassan Bakhshi.

Currency dealers remarked the situation has reversed, with black capital in Dubai stuck and recovery tough due to the ongoing war.

Pakistanis struggle to recover investments as black funds fuels Karachi property rally.

"The higher remittances from Dubai reflect that Pakistanis are sending back their liquid assets to Pakistan, " remarked a currency dealer. The war has changed Dubai's appeal as a destination for investment and tourism.

Inflows from Dubai have rose. The impact is that illegal funds being created in Pakistan has once again diverted towards the property business.

"Property rates in Defence went up 50-60 per cent after the Gulf war kicked off. Since the title of the Defence property is safe (meaning no double filing or fake dealing), most of the funds is going towards the area, " stated Mr Bakhshi.

Not only was black funds going to Dubai, but numerous tech firms had additionally shifted there before the war since of a hurdle-free business environment. They were additionally moving abroad due to frequent internet connectivity matters and excessive interference from the tax authorities.

Thousands of Pakistanis were using Dubai as a third country and conducting legal business with countries such as India and Bangladesh. As the war-like situation still prevails, now they are stuck and trying to recover their investment from Dubai.

According to Currency dealers, once the situation normalises, hundreds of millions of dollars would return to Pakistan from the Gulf, as Dubai has lost the confidence of foreign investors.

Mr Bakhshi additionally endorsed reports that Pakistani investors were trying their best to recover their investments from Dubai, but property costs in the war-affected country have fallen to a minimum level.

According to Property dealers, costs in Pakistan have began to rise after the war, and trading has additionally climbed. Both buying and selling have rose due to improved liquidity.

"The administration is additionally taking measures to boost the construction industry, and the rebound in property rates was the result of this effort. The property rates in other areas of Karachi have climbed in the range of 20 to 25pc, " noted Karim Dad, a property dealer. Published in Dawn, September 1st, 2026.

Shahid Iqbal is a reporter for Dawn based in Karachi with 38 years of experience covering politics and economics. As well as roles at United Press International (UPI) and AFP, his career includes seven years with the Japanese newspaper Asahi Shimbun.

In short, dubai property no longer safe haven is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.