Dubai no longer safe haven for Pakistani capital

Dubai, UAE, has lost its status as a safe haven for Pakistani investors, ever since the start of the US-Iran war.

Dubai has long been a sanctuary for black money from Pakistan. The Chairman of All Builders’ Pakistan Association (ABPA), Hassan Bakhshi, believes that every month some $60 million worth of black money from Pakistan was being invested in Dubai. These investments were primarily in property in Dubai which was seen as a contributing factor in price hikes of property there.

The US-Iran war has put a stop to this. Now, black money is no longer leaving Pakistan for Dubai. Instead, it is stuck in Dubai where its owners wish to move it back to Pakistan. Sources indicate that investors from Pakistan in Dubai are trying to liquidate their assets but are finding it difficult due to the massive fall in property prices. It should be noted that Pakistanis were speculated to hold more than $10 billion in property in Dubai previously.

Pakistani remittances from Dubai have increased, jumping from $566 million at the end of February 2026 when the war started, to $634 million at the end of August 2026. This is likely due to Pakistanis in Dubai liquidating their assets and bringing them back to the country. The black money that went to Dubai previously is now being invested in Pakistan’s own property market. The prices of DHA in Pakistan have increased by about 50-60 percent since February 2026, likely due to black money from Pakistan being reinvested in DHA societies as DHA property titles are usually secure.

All these sources concur that Dubai is no longer being considered a safe haven by Pakistanis. Once the war ends, there is likely to be a surge in foreign inflows from Dubai and UAE as Pakistanis bring their money back to the country. The Government of Pakistan is already taking steps to improve the country’s attractiveness for investment in anticipation of this, with a reduction in taxes and a boost to the construction industry with other measures in the works.