Building on fraternal bonds and mutual respect

As the social, political and economic climate in Pakistan continues to deteriorate, job and investment opportunities dry up, and health and safety become increasing concerns. Additionally, the country is plunged into a power crisis that is not expected to improve anytime soon. Add rising fuel prices and inflation to that and it becomes clear why Pakistanis would want to find ‘a second home away from home'. And for 40 years, the UAE has been that second home.

Pakistanis have been gravitating towards the UAE for years, even when times were good in their home country — mostly to look for better opportunities, but always knowing that the UAE is a place that welcomes Pakistanis with open arms due to the history of strong ties between the two nations, and the similarity in cultures, beliefs and traditions.

Home away from home
Pakistanis comprise about 14 per cent of the UAE population. Jamil Ahmad Khan, the Pakistani Ambassador to the UAE, puts the number of Pakistani expatriates in the UAE at about 1.2 million, a number that excludes the thousands who visit the country each year for tourism, business, exploring job opportunities and meeting loved ones.

The two countries have a history of friendship; Pakistan was the first country to recognise the UAE upon its formation. "The people of Pakistan and the UAE share a common heritage, culture and above all a common faith. The people of the two regions have been interacting for centuries, especially traders from the areas comprising Pakistan and areas comprising the UAE. This long-standing brotherly relationship continues today in the same manner," says the ambassador.

The Shaikh Zayed International Airport in Rahim Yar Khan and the Shaikh Zayed Hospital in Lahore are two important Pakistani establishments named after the late Shaikh Zayed Bin Sultan Al Nahyan, former President of the UAE.

Pakistanis in the UAE are employed in a variety of spheres — from taxi drivers and construction workers to entrepreneurs and business executives. "More than 5,000 Pakistani companies with sizeable businesses are registered in the UAE. Pakistani companies have been partners in the development and progress of the UAE since its formation and have invested a multitude of human and capital resources ranging from real estate, construction, health and education, telecommunication, infrastructure, banking and insurance and some industrial enterprises," says the ambassador. In addition to Pakistani companies, Pakistani individuals have also invested heavily in the UAE across all sectors, including retail, real estate, tourism, hotels and restaurants.

Although the situation in Pakistan is not particularly conducive to tourism, the number of tourists visiting Pakistan from the UAE has been growing over the years. With increased stability and improvement in facilities in Pakistan, the number of tourists should go up, especially given the natural beauty in its mountainous north, its Mogul architecture in Punjab, and Taxila and Mehrgarh's archaeological sites. Stability would also result in a rise in foreign direct investment and joint venture opportunities across a variety of industries, particularly oil and gas, energy, agriculture and infrastructure.

"UAE business groups are fully cognizant of potential investment opportunities in Pakistan and hence are investing in a significant number to the tune that the UAE has become one of the largest sources of foreign direct investment in Pakistan," says the ambassador.

Trading partners
Pakistan and the UAE are important trade partners as well. The ambassador puts the trade volume between the two countries at around $7 billion (Dh25.7 billion) during 2010, out of which Pakistani exports to the UAE were $1.7 billion while [Pakistani] imports were around $5.2 billion.

Major exports from the UAE to Pakistan include petroleum products, iron ore, plastic material, chemical products, machinery items and semi-manufactured gold. Major exports from Pakistan to the UAE include rice, food products, art silk and synthetics, garments, knitwear, fruit and vegetables, textiles, engineering goods, surgical instruments, sports goods, footwear, carpets and marble and onyx products.

Beneficial exchange
Pakistanis working in the UAE are usually paid in dirhams, and remitting funds back to Pakistan allows their families to benefit from the exchange rate. It is thus often relatively lucrative for Pakistanis to work in the UAE rather than Pakistan, despite higher cost of living. The UAE is also a favoured location not only because of the fraternal ties between the two countries, but also because of the physical proximity. A flight from Dubai to Karachi is only two hours long and allows Pakistanis living in the UAE to visit home regularly.

Nurtured over 40 years, the Pakistan-UAE relationship is founded on mutual respect, similarity in beliefs and friendship. Leaders of the two countries cherish this relationship and look to continue to develop these strong ties.