Featured Post

Wake up Now ! جاگو ، جاگو ، جاگو

Wake up Pakistan ! Presently the Muslim societies are in a state of ideological confusion and flux. Materialism, terrorism,...

Sunday, February 26, 2017

Dubai properties and Black Money

Image result for dubai real estate market
For a number of years now, we have been hearing about billions of dollars worth of investment in Dubai real estate by Pakistanis. The latest release of data may show a large decline, but the amount is still just below $1bn in the year 2016, down from $2.1bn in the preceding year. In total, the data from the Dubai Land Department indicates that $7.73bn have been invested by Pakistanis in Dubai real estate since 2013.
A VERY valid question is circulating inside the National Assembly, thanks to the efforts of Asad Umar of the PTI: can the government tell us how much money has been sent abroad from Pakistan for the purpose of buying property in Dubai or in the rest of the United Arab Emirates in the recent past? Unfortunately, in this country, the whole scheme of sending and receiving foreign exchange is rigged in such a way as to make it impossible to find an answer. There is a good reason why this is important.
There are grounds to be careful with this data though. First of all, it includes investments by those non-resident Pakistanis who are living and earning abroad. Second, it includes perfectly legitimate investments, not necessarily made from so-called black money or other ill-gotten proceeds. It would be a mistake to assume that the full reported amount of $7.73bn necessarily presents a problem. But in order to know the extent of the challenge these investments may pose, we need a simple reporting template that can tell us how much has been sent from here.
And that is where the problem comes in. The State Bank governor recently told a National Assembly standing committee that his institution has not granted any permission for outward remittances for investment in Dubai real estate. According to the Foreign Exchange Manual, any investment made abroad that exceeds $5m requires cabinet approval, and any investment made abroad in amounts less than that, through the interbank market, requires State Bank approval. But the way the system is set up, one can simply send an outward remittance without declaring that it is for investment purposes, and under the prevailing law no questions can be asked. The only way this could come to the attention of the state is if the person involved decides to declare the assets acquired in his or her wealth declaration at home, in order to keep the money white. For those who have no intention of ever declaring their assets, the hawala system provides an easy route to send the money with no questions asked. It is a marvel to note that our foreign exchange scheme is set up in a way that we can never even know the amount that is going from the country into real-estate investments abroad, let alone do anything to regulate or tax the enterprise.

Published in Dawn, February 26th, 2017

Dubai Real Estate Prices Seen Falling 5% in 2017 Before Recovery ...

Nov 20, 2016 - Average villa prices in the emirate were dragged down by properties at the top end of the market, according to a Dubai real estate report ...

Dubai property prices to rise in 2017, but how quickly? | The National

Nov 21, 2016 - Brokers and analysts are certain that Dubai residential house prices will rise next year but disagree over the speed of the property market's ...

Real estate and property news in Dubai, Abu Dhabi and beyond UAE ...

Latest real estate and property news in the UAE and across the world from ... Dubai issues new rules for brokers marketing overseas properties in the emirate.

Property Prices in United Arab Emirates | Emirian Real Estate Prices

www.globalpropertyguide.com › Middle East › United Arab Emirates
When adjusted for inflation, house prices in Dubai fell by 6.86%. ... in real GDP in 2016) most sectors of the real estate market are likely to see a soft landing, with ...

Dubai's Real Estate Markets Poised to Rebound in 2017 - Mansion ...

Jan 9, 2017 - Dubai's residential market is poised to rebound in 2017 from its cyclical downturn since mid-2014, as oil prices stabilize and real estate projects ...
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~  ~ ~ ~  ~

~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ ~ ~ ~  ~ ~ ~  ~
Humanity, Knowledge, Religion, Culture, Tolerance, Peace
انسانیت ، علم ، اسلام ،معاشرہ ، برداشت ، سلامتی 
Books, Articles, Blogs, Magazines,  Videos, Social Media
بلاگز، ویب سائٹس،سوشل میڈیا، میگزین، ویڈیوز,کتب
سلام فورم نیٹ ورک  Peace Forum Network 
Join Millions of visitors: لاکھوں وزٹرز میں شامل ہوں 
سوشل میڈیا پر جوائین کریں یا اپنا نام ، موبائل نمر923004443470+ پر"وہٹس اپپ"یا SMS کریں   
Join 'Peace-Forum' at Social Media, WhatsApp/SMS Name,Cell#at +923004443470
Facebook: fb.me/AftabKhan.page