Want to own a slice along China's new Silk Route?

Published: April 6, 2018
Eiwan Developments
Publishing Partner

So you have decided to put your money to good use but are confused about investment options? Say no more! We are sure you must be aware of the interest Gwadar real estate has aroused in the foreign and domestic investment markets. Here are all the reasons you too, should be seriously considering this investment avenue:

  1. The ‘new Silk Route’

You have entered this race at the perfect time because China has massive plans to revive its historic Silk Route in the 21st century. The ‘New Silk Road’, or One Belt One Road (OBOR) initiative, covering 4.4 billion people and up to 40% of the global GDP,  will have ripple effects on the global economy.

The China-Pakistan Economic Corridor (CPEC), with a total investment value of over $60 billion, is the flagship component of the new Silk Road project. CPEC, believed to be China’s biggest ever overseas investment, will see a 3,218km route consisting of highways, railways and pipelines that will connect Pakistan’s Gwadar Port to Xinjiang province of China by 2030.

Gwadar port will open up a route for transporting Middle Eastern oil to several landlocked countries since it is located near the Strait of Hormuz, which is the door for about 20% of the world’s oil. You should understand that this route will soon be the linchpin of the oil-driven Chinese economy.

21st century Silk Road Economic Belt

21st century Silk Road Economic Belt

  1. Safer investments

A plot in Gwadar is cheaper today because it is still a developing city. However, the plot’s value will skyrocket in future as local and foreign workers flock to the city. Besides that, the Pearl Continental in Gwadar is bound to attract tourists.

Zaver Pearl Continental Hotel Gwadar

Zaver Pearl Continental Hotel Gwadar

Overseas investors should be more confident about this investment because the government is particularly keen on protecting this China-backed venture. It has deployed 9,000 Pakistan army soldiers and 6,000 para-military forces personnel in Gwadar.

When picking a developer to invest with, trust is the most important factor to consider. It is very important to invest with a developer who has a No-Objection Certificate (NOC).  If you want to make your investments via a secure online payment portal, from the comfort of your home in Dubai, London or Lahore, you should check out the  official website of one of the developers with an active NOC.

  1. Government incentives

This smart port city with its Free Trade Zone and Export Processing Zone is all set to become the hub of international trade. The imminent trade zone will eliminate customary trade barriers and minimise bureaucratic regulations. As in investor, you are in for a treat because in addition to these facilities, you can also take advantage of the tax amnesty announced by the Economic Coordination Committee (ECC) for all enterprises operating in the zone.

The zone area will have a 23-year tax holiday and a land lease upto 40 years for upcoming businesses operating in the region; an opportunity which shouldn’t be missed by investors. Moreover, the ECC has exempted the China Overseas Ports Holding Company Limited (COPHCL) and its operating companies from paying the minimum 1% income tax, 12.5% dividend income and withholding tax, sales tax and federal excise duty.  This announcement is surely catching attention of the worldwide business community and within no time, the port city will witness plethora of investments.

Recently, the government of Pakistan has also excused COPHL, operating companies, contractors and subcontractors from customs duty for a period of 40 years. Therefore, we suggest that if you wish to gain from this generous tax amnesty then consider investing in Gwadar.


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Reader Comments (3)

  • cautious
    Apr 7, 2018 - 5:09AM

    Gwadar port will open up a route for transporting Middle Eastern oil to several landlocked countries since it is located near the Strait of Hormuz,

    Off repeated but facts say otherwise. Gwadar isn’t set up to offload oil – has no storage facilities – and has no railroad or pipelines for transporting oil. Recommend

  • Darjat
    Apr 8, 2018 - 9:12PM

    Under CPEC the need is to invest in hydro project/s in GB.The past over 70 yrs of govt support has resulted around 100 MW supply. But the potential is huge ( 100,000 MW +), if low head run-of the river sites are harnessed. It appears there is no serious efforts in investing in hydro projects up in the mountains. Bunji alone have installed capacity of 8100 MW. Recommend

  • Muhammad. Yasin
    Apr 8, 2018 - 10:12PM

    All building of Gwadar port looking very good, in future Gawadar will be the game changer in the region inshallah. Recommend

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