By takumihamano 
The relationship between the UAE and Pakistan is multifaceted, encompassing various economic, social, and cultural dimensions. One of the critical aspects of this relationship is the impact of UAE rates on Pakistan, particularly in terms of remittances, investment, and trade. Here are some key developments and insights that shed light on this topic:
- UAE-India Remittances Surge: Remittances from the UAE to India have shown steady growth, with investment now being a key driver. This shift from remittances for home maintenance to investment in India’s stock market and real estate highlights the growing stability and long-term settlement of expatriates in the UAE. This trend is likely to have a similar impact on remittances to Pakistan, as expatriates look for investment opportunities back home.
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Dubai Gold Price Surges: Dubai’s 22K gold price exceeded AED 350 per gram for the first time, representing a significant increase. Despite high prices, there is still demand among shoppers, particularly during the Eid holiday. This surge in gold prices can influence the gold market in Pakistan, where gold is a popular investment and gift option.
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UAE Corporate Tax Clarifications: The UAE’s corporate tax law provides a clear roadmap for foreign investors in qualifying investment funds (QIFs) and real estate investment trusts (REITs). This clarity can attract more Pakistani investors to the UAE, seeking to benefit from the favorable tax environment and investment opportunities.
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UAE’s Real GDP Growth: The UAE’s real GDP grew by 3.9% in 2024, with projections of 4.7% growth in 2025. The UAE’s robust economic performance, including significant growth in the banking and insurance sectors, can positively impact trade and investment flows between the UAE and Pakistan.
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UAE-India Comprehensive Economic Partnership Agreement (CEPA): The CEPA, effective since 2022, has facilitated increased investment opportunities between the UAE and India. This agreement serves as a model for potential economic partnerships between the UAE and Pakistan, promoting trade and investment.
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Dubai Real Estate Market: Dubai’s real estate market continues to attract significant investment, with AED 33.27 billion in sales recorded since early April 2025. The favorable investment climate in Dubai can encourage Pakistani investors to explore real estate opportunities in the UAE.
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UAE’s Participation in Arab Financial Institutions Meetings: The UAE’s active participation in regional financial institutions and meetings underscores its commitment to fostering economic cooperation and development. This engagement can lead to enhanced financial and economic ties between the UAE and Pakistan.
In summary, the UAE’s economic policies, investment opportunities, and robust growth have a significant impact on Pakistan, particularly in terms of remittances, investment, and trade. The favorable tax environment, strong real estate market, and active participation in regional economic initiatives make the UAE an attractive destination for Pakistani investors and expatriates. As both countries continue to strengthen their economic ties, the benefits of this relationship are likely to grow, contributing to the prosperity of both nations.