Shift in Investment Trends as Dubai Loses Appeal for Pakistani Investors
By Editor • September 1, 2026 • 1 min read
The ongoing Gulf war has significantly altered the financial landscape for Pakistani investors, particularly in relation to Dubai's once-thriving property market. Previously considered a safe haven for black money, Dubai is now witnessing a reversal in investment flows.
Sources indicate that with the war disrupting financial activities, many Pakistanis are retrieving their investments from Dubai and redirecting them into local property markets, resulting in a notable surge in prices. According to Hassan Bakhshi, Chairman of the All Pakistan Builders Association, around $60 million of illegal money was previously funneled into Dubai each month, a trend that has now ceased.
As a consequence, property prices in Karachi's Defence area have skyrocketed by 50-60% since the conflict began, with investors seeking safer opportunities at home. Currency dealers have reported a spike in remittances from Dubai, suggesting that many Pakistanis are bringing back their assets.
Karachi's construction sector is also benefiting from government initiatives aimed at revitalizing the industry, leading to a 20-25% rise in property values across other areas of the city. As the situation develops, experts believe that once stability returns, substantial amounts of capital will flow back into Pakistan from the Gulf.
Source: www.dawn.com
