Dubai has solidified its status as a pivotal entry point for Pakistani companies seeking to expand their reach across the Middle East and North Africa (MENA) region.
In the first half of 2024 alone, 3,968 new Pakistani companies joined the Dubai Chamber of Commerce, marking a significant uptick in cross-border business relations. This influx of Pakistani firms positions Pakistan as the second-largest national group, following India, to secure memberships with the Chamber during this period.
A recent analysis by the Dubai Chamber of Commerce, one of the three chambers operating under the umbrella of Dubai Chambers, revealed that Indian investors topped the list of new non-Emirati companies joining the chamber during the first half of this year, with 7,860 new companies.
“Pakistan ranked second on the list with 3,968 new companies joining in H1 2024, while Egypt followed with 2,355 new companies registering as members of the chamber.” Egypt ranked third on the list with 2,355 new companies registering as members of the chamber.
Dubai – a Growing Hub for International Business
The Dubai Chamber of Commerce, renowned for its robust support of international businesses, reported that these new memberships reflect the strategic advantages Dubai offers.
Pakistani companies are drawn to the United Arab Emirate’s (UAE) favorable business environment, world-class infrastructure, and unparalleled access to regional and global markets.
As Pakistan’s economy continues to face challenges, Dubai has strengthened its position as a global business hub, providing critical support to Pakistani companies looking to expand their operations across the MENA region.
New Corporate Sectors: Key Highlights
In terms of the sectoral distribution of new member companies joining the Dubai chamber during H1 2024:
- The Trade and Repairing Services Sector ranked first in the sectoral distribution, accounting for 41.5% of the total new member companies.
- The Real Estate, Renting, and Business Services Sector came in second place, representing 33.6% of the total new member companies. This sector also experienced a 9.5% year-over-year growth.
- The Construction Sector secured the third spot, comprising 9.4% of the total new member companies. It demonstrated the strongest growth among the top sectors, registering a 23.5% increase compared to the same period in 2023.
- The Transport, Storage, and Communications Sector ranked fourth, making up 8.4% of the total new member companies. This sector achieved a 13.6% growth rate year-over-year.
- The Social and Personal Services Sector rounded out the top five, accounting for 6.6% of the total new member companies.
Pakistan’s Economic Struggles Drive Expansion Abroad
The surge in Pakistani companies joining the Dubai Chamber underscores broader economic challenges within Pakistan.
Despite a population of over 240 million, Pakistan has struggled to attract and retain investment due to persistent instability, inconsistent policies, and increasing non-productive expenditures. These factors have led many Pakistani businesses to look beyond their borders for growth opportunities.
Dubai, with its strategic location and business-friendly environment, offers an ideal platform for these companies to establish a foothold in the Gulf and beyond. The emirate’s strong trade links and comprehensive infrastructure make it an attractive destination for Pakistani firms aiming to navigate the competitive global market.
In 2023, 8,036 new Pakistani businesses registered with the Dubai Chamber of Commerce, reflecting a 71.2% increase from the previous year. This trend indicates a growing recognition of the benefits that Dubai offers to foreign businesses, particularly those from Pakistan.