Around 1.7 million Pakistani diaspora residing in the UAE send around $6 billion from the UAE every year which helps Pakistan economically. Bilateral relations between the Islamic Republic of Pakistan and the United Arab Emirates date back to the UAE’s formation in 1971. Both the countries have had 50 years of unique brotherly relations. The transformation of brotherly relations into growing trade and economic relations is praiseworthy. Bilateral economic cooperation in trade, energy, infrastructure, petroleum etc. has been instrumental for both the economies.
The UAE-Pakistan bilateral trade is around $11 billion at this juncture which is anticipated to spike to $40 billion in 10 years down the line. Pakistan imports refined petroleum, crude petroleum, scrap iron etc. from the UAE and exports garments, food items, meat, cereals, agricultural products, fruits and vegetables etc. Pakistan exported products worth US$1.17 billion to the UAE during 2021.
Trade with the UAE is sure to open the doors of umpteen opportunities with plenty of other countries. The United Arab Emirates borders Oman and Saudi Arabia by land and Iran and Qatar by sea. With the population of ten million, the UAE accommodates 15% Pakistanis. With GDP (nominal) of $501 billion, UAE’s Exports of Goods is around $US 335 billion and Imports of goods hover around $246 billion. UAE organized an extremely triumphant exhibition and the participation of millions of people in Dubai Expo 2020 was a clear testimony of the success of its policies and economy.
Pakistan and the UAE are working on multitude of opportunities. Joint ventures would surely beef up bilateral trade and economic relations between two brotherly Islamic countries. The UAE companies are doing successful business in Pakistan and Pakistani investors have been invited to explore the UAE for business and investment activities. The UAE undoubtedly is a lucrative destination for investment with low-tax environment and opportunities for investment across both mainland and free zones. UAE is emerging as a hub of trade and investment activities for the entire world and is expected to attract $150 billion of inward investment by 2030.
The United Arab Emirates has invested billions of dollars in Pakistan over decades which has strengthened the brotherly bonds between both the countries. Furthermore, the UAE continues to be a major donor of economic and financial assistance to Pakistan.