UAE plans to invest in Karachi desalination plant, transport, construction projects

Announcement follows a meeting between CM Sindh, UAE Consul General in Karachi, on occasion of UAE National Day

The United Arab Emirates (UAE) is looking to invest in multiple infrastructure projects in Sindh, including a desalination plant in Karachi, as well as transport and construction ventures, according to chief minister Sindh spokesman.

The announcement follows a meeting between Chief Minister Sindh Murad Ali Shah and UAE Consul General in Karachi, Bakhit Atiq Al Rimithiki, on the occasion of the UAE National Day.

"Discussions were also held on the investment of UAE companies in various projects in Karachi," a statement from the CM's office said. "UAE companies are interested in investing in Karachi’s desalination plant, transport, and road and bridge construction sectors."

The UAE is one of Pakistan’s largest trading partners, with foreign investment valued at over $10 billion in the last 20 years, according to the UAE Ministry of Foreign Affairs. The trade volume between the two countries rose by 12% in 2023, reaching $7.9 billion.

In May 2023, Prime Minister Shehbaz Sharif confirmed that the UAE had committed to investing $10 billion in Pakistan’s promising economic sectors.

The UAE’s AD Ports Group has already made significant investments in Pakistan, including a joint venture with Kaheel Terminals at the Port of Karachi. This partnership involves a $400 million, 15-year investment in container, bulk, and general cargo operations at the port.

Additionally, the joint venture has committed to investing $75 million over the next two years in infrastructure upgrades, with plans for a further $100 million in the next five years to improve efficiency and capacity by 75%.

Pakistan has been seeking foreign investment to bolster its $350 billion economy as it navigates reforms required by the International Monetary Fund (IMF).