Dubai: A Heaven for Black Market
The tale of black money and hidden property are not something novel for the world; however, the recent revelations- Dubai Unlocked, by Centre for Advance Defence Studies (C4ADS), a Washington based non-profit able organization with the help of various other organizations, such as: E24 and Organized Crime and Corruption Reporting Project (OCCRP) has added a new chapter by exposing nearly dollar 400bn overseas property in Dubai. More than 13000 Pakistanis from different walks of life, prominently, renowned politicians, serving and retired civil and military officers along with showbiz and businessmen have also shared the worth of 13 billion USD, as per the leaked data. Figures are not yet confirmed by the Pakistani officials, either these are declared assets or not, irrespective of the fact that various stalwarts have already accepted, the properties by saying that these are already being declared in their annual income tax returns.
Despite the global hue and cry, Dubai authorities are reluctant to share information about the investors particularly in their real state sector. The relaxation and immunities in the laws and regulations of Dubai government attract people to dole out their wealth in Dubai, either by legal or illegal means. People are free to deal in cash, crypto or any other means, without revealing their source of income, profoundly shifted black market from rest of the world to Dubai, as it acts as a safe haven for them.
Considering the sceptic nature of financial system, Financial Action Task Force (FATF) had included Dubai into its Grey List, nonetheless, it had removed in 2024: most of the critics believe, FATF has made its decisions due to the geopolitical tensions, rather Dubai has carried out the obligations of the global financial watchdog. Shabbar Zaidi, the former Charmain of Federal Board of Revenue (FBR) has also highlighted the authoritative nature of Dubai government, when he was heading FBR, he had tried to fetch out the information of Pakistanis who hold ‘Iqama’ in 2019, instead of giving him required data, the diplomat of Dubai has directly approached to Prime Minister, Imran Khan to keep Zaidi away from such matters.
Owing to the urgency of the matter, international institutions should have to make the states accountable, if their internal laws and obligations support black market, money laundering and other financial irregularities, as they strengthen corruption, and even terrorism. Moreover, the world will not attain its vision of sustainable development, if it does not focus on the flight of capitals from the poor and third world states to the other part of the world by illegal means. Therefore, bringing financial transparency in global financial system is the need of the hour for the development and the prosperity of every society, across the globe.
