DUBAI: Pakistan ranked second on the list of new non-Emirati companies joining the Dubai Chamber of Commerce in the first half of 2024 with nearly 4,000 entities registering themselves with the Gulf country’s body.
A statement on Wednesday by the Government of Dubai Media Office and the Dubai Chamber of Commerce – one of the three chambers operating under the umbrella of Dubai Chambers – stated that 3,968 Pakistani companies registered in the six-month period.
This is a 17% increase when compared with the figure of 3,395 in the same period (January-June) of 2023. Overall, 8,036 new Pakistani businesses were registered by the Dubai Chamber of Commerce last year, which was 71.2% higher in comparison to 2022.
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The development highlights issues plaguing Pakistan’s economy that has for decades struggled to attract and retain investment. Its constant run-ins with instability, inconsistent policymaking, and a general knack of increasing expenditure in non-productive sectors have pushed away investors that do not see the population of over 240 million as a viable enough market. Bailouts with the International Monetary Fund (IMF) are a frequent event, and the economy has stayed more susceptible to shocks than regional peers.
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Other non-Emirati companies joining Dubai
The Dubai Chamber of Commerce statement added that Indian investors topped the list of new non-Emirati companies joining the chamber during the first half of 2024, with 7,860 new companies.
“The findings highlight Dubai’s strong ability to attract direct investments from India and underline the emirate’s growing appeal among international businesses,” the statement added.
“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.”
During the first half of the year, 1,358 new Syrian companies joined the chamber, placing the country fourth among the top nationalities of new member companies. The United Kingdom ranked fifth with 1,245 new companies, while Bangladesh ranked sixth with 1,119 new Bangladeshi companies during H1 2024. Iraq secured seventh place on the list with 799 new member companies, and companies from China claimed the eighth spot with 742 new companies joining the chamber’s membership.
Sudan ranked ninth on the list, with 683 new Sudanese companies registering as members of the chamber. Jordan claimed the tenth spot, with 674 new companies joining the chamber’s membership during the first half of this year.
Sector-wise distribution
In terms of the sectoral distribution of new member companies joining the chamber during H1 2024, the trade and repairing services sector ranked first, accounting for 41.5% of the total.
The real estate, renting, and business services sector came in second place, representing 33.6% of the total. This was followed by the construction sector in third place on 9.4%, and the transport, storage, and communications sector, which ranked fourth with 8.4%. The social and personal services sector came in fifth place on 6.6%.
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The construction sector demonstrated the strongest growth among the top five sectors of the new companies joining the Dubai Chamber of Commerce in the first half of 2024, registering a growth of 23.5% compared to the same period in 2023. The transport, storage, and communications sector followed behind, achieving a growth rate of 13.6%. The real estate, renting, and business services ranked third, exhibiting a 9.5% increase year-over-year.
In July, the Dubai Chamber of Commerce had stated that a total of 34,075 new companies joined as members during H1 2024, a year-over-year (YoY) growth of 5%.
“The value of members’ exports and re-exports during H1 2024 amounted to AED 145.9 billion, representing a YoY growth of 6.7%.”
Copyright Business Recorder, 2024