particular interest this year, has been closer financial, investment and business relations between Pakistan and United Arab Emirates. The same is true about other Muslim countries, with which Pakistan is widening and deepening economic ties and strengthening solidarity with them. United Arab Emirates and Pakistan, in particular, have decided to give a major boost to their economic relations in the immediate future.
The present $ 13.1 billion UAE investment in Pakistan can be doubled, and the $ 5.0 billion plus trade rapidly raised, the Foreign Ministers of the two countries have agreed in their meeting at Islamabad, only weeks ago. The new investment and trade plans were unveiled at the 9th UAE-Pakistan Joint Ministerial Commission (JMC) by UAE Foreign Minister Shaikh Abdullah bin Zayed Al-Nahyan and his Pakistani counterpart Khurshid Mahmud Kasuri.
At the JMC, the two sides also signed five agreements or memoranda of understanding (MoUs). Shaikh Abdullah and Kasuri are strongly of the hope, these steps, besides the planned increase in investment and trade, will “go a long way in further consolidating bilateral ties.” The UAE has agreed to provide a $265 million soft loan for building mega dams in Pakistan. The new agreements and MoUs cover bilateral political consultations between UAE and Pakistani foreign ministries, establishment of a joint UAE-Pakistan Business Council, protocol on cooperation in media, cooperation in terrorism and organised crime, and cooperation in the field of culture. UAE’s sustained official and private sector interest and growing FDI inflows, make it the biggest investor in Pakistan in several sectors, including telecom, airlines, banking, financial services, construction and real state. These investment total $ 13.1 billion. UAE had provided 24.12 per cent of the overall FDI inflows into Pakistan last year— becoming the biggest foreign investor. More than 20.0 per cent of that investment went into the telecom sector alone.

Shaikh Mohammad’s visit
Investment and trade are rapidly increasing since UAE Vice President, Prime Minister and Ruler of Dubai His Highness Shaikh Mohammad bin Rashid Al-Maktoum’s visit to Pakistan a year ago. Three MOUs were signed during Shaiklh Mohammad’s visit, to boost official and private investment in Pakistan, including financing mega projects. These mega projects are estimated to cost $ 36 billion— part of the financing for which Pakistan expects to come from UAE.
The two-way trade between UAE and Pakistan has, by now, shot across $ 5.0 billion a year, up from $ 2.78 billion in 2005. UAE is now one of Pakistan’s biggest trading partners in the world.
Shaikh Abdullah also informed President Musharraf and Prime Minister Aziz that the UAE intends to double its present investment of $ 13.1 billion to $ 26.0 billion. UAE will build a $ 6 billion oil refinery at Karachi, and also invest in natural gas, construction, and tourism. Shaikh Abdullah said, “the UAE views Pakistan as its strategic economic partner and appreciates its rapid economic growth.” He said, Pakistanis living and working in UAE have been “contributing in a wide variety of ways to the growth of my country.”