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Ties in the fast lane

By M. Aftab
The significant growth in UAE-Pakistan business and investment has encouraged the two sides to put all business on a faster track.

The present cooperation already spans from telecoms to airlines and banking to foreign trade. The UAE is already the biggest investor in Pakistan among GCC countries.

Public and private entities invested $3.72 billion from 2004 to 2010 alone, and more foreign direct investment inflows are now taking place.

The UAE is Pakistan's second largest trading partner. Their annual two-way trade is $9 billion. In 2010, Pakistani exports to the UAE rose 15 per cent, and a further 12 per cent growth is expected this year. Pakistan has offered UAE investors to invest in sectors ranging from crude oil and natural gas to dried fish, telecoms, processed foods and dates, as well as in banking, finance and energy.

This is the vision of their leaders as the UAE celebrated its 40^th National Day. The commitment to further gear up business and investment has been made at the highest level. UAE Foreign Trade Minister Shaikha Lubna Al Qasimi, greatly encouraged by the current level of growth in business and the enthusiasm shown by both UAE and Pakistani companies, has announced plans to step up these relations further during her just-concluded visit to Pakistan.

She said the recent UAE Expo in Karachi will be made as an annual event in Pakistan after witnessing an enthusiastic response and support extended by the government of Pakistan, and other organisations, investors, industrialists and businessmen.

"Businessmen from Pakistan are keen to expand business with UAE companies," said Mohammad Nasser Hamadan, the UAE Foreign Trade Ministry's director of trade promotion. UAE-based banks and financial institutions are already helping the two sides boost trade, investment and the growing inflow of home remittances, sent by overseas Pakistanis. Remittances, after exports, are the second-largest source of forex earnings.

Dubai Islamic Bank Pakistan CEO Junaid Ahmed highly applauded the UAE Expo, saying the lender is playing "a key role in this country and plans to expand its branch network in Pakistan from the present 73 to 100 by next year."

"Pakistan's banking sector is a growing market and Dubai Islamic Bank Pakistan wants to expand its operations here and will also offer the entire range of Shariah-compliant products." The bank reported a good profit of Rs168 million in the first half of 2011.

Atif Aslam Bajwa, CEO of Dubai-based Bank Al Falah, says the "bank is growing fast in Pakistan and will further expand its operations."

Walid Irshad, president and CEO of Pakistan Telecommunication Co Ltd, or PTCL, announced plans to make "more investments in Pakistan to fully transform PTCL into a world-class telecom company."

Joost de Hartog, Etihad Airways regional general manager, said that the carrier "is doing great business in Pakistan. With the expansion of our fleet, we are planning to enhance our operations in Pakistan in the near future." Aside from operating daily flights from Islamabad, Karachi, and Lahore, and twice weekly from Peshawar to the UAE, Etihad is serving Pakistanis living in the US, Canada, Europe and the Middle East.

Flydubai CEO Ghaith Al Ghaith said the airline has increased business in Pakistan by 10 per cent, and that "we are further planning to expand it."

The enthusiasm of Pakistanis to boost business between the two countries equally matches that of UAE corporates.

"Foreign investors have never been touched in Pakistan by any government, even during the nationalisation of some of the domestic companies in 1972," said Dr Ishart Hussian, the former governor of the State bank of Pakistan and a renowned economist.

"Pakistan has liberalised its foreign exchange regime, and profit, royalties and dividends are 100 per cent repatriable."

Khalid Tawab, president of the Federation of Pakistan Chambers of Commerce and Industry, said: "The chambers of commerce and industry all over the country, are playing their full role to expand bilateral trade and investment between Pakistan and the UAE."

Pakistani Ambassador to the UAE Jamil Ahmed Khan has asked businessmen to "take full advantage of opportunities in the Emirates for the re-export business."

© Khaleej Times 2011