A report has revealed how Dubai’s property market is being used to hide ill-gotten money around the world. The report, titled ‘How Dirty Money Finds a Home in Dubai Real Estate,’ was compiled by journalists from 74 different organizations in 58 countries after more than six months of research and takes into account real estate assets up to the spring of 2022.
The report, prepared after an analysis of real estate data collected from the Dubai Land Department and public utility companies, highlights the significant participation of Pakistanis, including former president Pervez Musharraf and current president Asif Ali Zardari, as owners of property.
Indian owners top the list, while Pakistanis are the second nationality to own property in Dubai, with a combined value of $11 billion. 17,000 Pakistanis own 23,000 properties in the region, illustrating the magnitude of their presence.
The report specifically identifies properties associated with Asif Zardari’s family and one property associated with Pervez Musharraf.
Also, people like Roshan Hussain, Hussain Zahoor and Obaid Khanani are mentioned. The latter was sanctioned by the United States in 2016 for his alleged involvement in money laundering activities, The Dawn, one of the publications involved in the operation, reported in an investigation.
“If we have the data you are talking about, as well as the information on residence status, we will make sure those who are eligible to pay tax in Pakistan on rental income or capital value are doing so,” Malik Amjed Zubair Tiwana, chairman of the Federal Board of Revenue (FBR) told Dawn.
“It may be a sensitive matter, and perhaps the law will have to change, but with political will we will go all out against tax evaders. The government is prepared for this,” he added.
The report highlights Pakistani figures, referencing Faisal Vawda, wife of Mohsin Naqvi, Hussain Nawaz and Sharjeel Memon, as well as several members of the Sindh and Balochistan assemblies. The list also names more than a dozen bureaucrats, a diplomat and police chiefs.
What does the law say?
People who live in Pakistan over 183 days a year must value their foreign assets abroad at the current exchange rate. If these assets are worth more than Rs 100 million, they will have to pay 1% tax on them. This law is being challenged before the high courts and the Supreme Court.
However, if you are a Pakistani living abroad, you only have to pay taxes on the money you earn in Pakistan. You do not need to report your foreign assets to the government.
It should be noted that a mere mention in the data does not constitute evidence of financial crime or tax fraud, according to the Dawn report.
“In fact, several of those approached by Dawn for comment on their properties said they were declared to the tax authorities,” it said.
According to the report, when it comes to the number of residential properties owned by foreigners, Indians top the list with 35,000 properties and 29,700 owners. The total value of these properties was estimated at $17 billion that same year.
Organised Crime and Corruption Reporting Project (OCCRP) carried out the investigation.