Gwadar, Pakistan’s southernmost port city located along the Arabian Sea shores, has been a priority for the Pakistani government.
To enhance its infrastructure and support growing economic activity in Gwadar, various projects such as roads, railways, and an international airport are being constructed to facilitate growth.
With its strategic location at the mouth of the Persian Gulf and its potential to become a central trade hub, many wonders if Gwadar could be the next Dubai.
Dubai, a city known for its luxurious lifestyle and booming economy, has become a significant destination for tourists and businesses.
As Gwadar continues to develop and attract investment, some predict it could follow in Dubai’s footsteps and become a major player in the global economy.
Important Reasons That Shows Why Gwadar Be The Next Dubai
Gwadar is set to emerge as an important gateway for countries in the Middle East, Africa, and Europe.
With its strategic location, it has the potential to become the primary port for countries that account for two-thirds of the world’s population and two-thirds of the world’s oil and gas reserves.
As a contemporary Duty-Free Zone, Gwadar is expected to offer attractive incentives to attract new businesses, including a 23-year tax exemption, a 99-year lease of plots, and the option of 100% foreign ownership. Already, dozens of firms from across the globe have become part of the Free Zone.
At the center of the world’s busiest sea lane, Gwadar is set to significantly reduce the time it takes for imports and exports to reach and exit China from 45 days to just 10 days. This reduction will generate annual savings by transporting cargo via road through the China-Pakistan Economic Corridor.
With China’s growing middle-class population, the energy demand is expected to increase by 50%.
When CPEC is completed, all raw materials and finished goods could flow in and out of China through Gwadar, making it a key player in international trade.
Dubai, located less than 450 nautical miles from Gwadar, is currently the primary trading center in the region, with more than 85% of its shipping cargo being re-exported.
However, due to its more strategic location, it is expected that much of this traffic will eventually shift to Gwadar, particularly in the oil and gas sector, making it the region’s commercial hub.
Gwadar, the third-largest deep-sea port globally, aims to compete with Dubai by offering state-of-the-art amenities to lure investments, tourism, manufacturing, and communities. The port has been operational and is predicted to provide stiff competition to Dubai regarding its infrastructure and services.
What Is The Importance Of Gwadar Port?
Gwadar Port is an essential deep seaport that ranks third for its significance.
Its strategic position at the intersection of international maritime shipping lanes and oil trade routes makes it a key link in global commerce.
Gwadar Port potential as an international trade hub in Pakistan is immense due to its connections with Central Asia, South Asia and the Middle East.
Gwadar Port modern infrastructure, such as its deep-sea port and extensive road and railway network, could soon make it a hub of international trade – benefitting Pakistan and the wider region.
As part of China Belt and Road Initiative and China-Pakistan Economic Corridor project, the port’s development is anticipated to enhance connectivity.
It promotes economic cooperation between countries in the region, leading to significant economic growth and development.
Would Investing In Gwadar Be A Smart Move?
Given its strategic location, modern infrastructure, and connections to Central Asia, South Asia, and the Middle East, Gwadar appears to be an ideal location for Pakistan new economic frontier.
Gwadar Port rapid development as part of the China-Pakistan Economic Corridor project has attracted much attention, making it an attractive investment destination.
Investment rates in Gwadar are attractive, providing investors with a prime opportunity to invest in Pakistan’s economic expansion.
Unfortunately, these rates are projected to rise significantly over the coming years – potentially tripling in value.
Investing in Gwadar now could reap significant rewards in the future.
As economy develops, it is expected to create numerous employment opportunities, spur economic growth and contribute to regional development.
Investing in Gwadar makes sense for those seeking to benefit from Pakistan’s progress.
When Will Gwadar Port Be Completed?
Gwadar Port’s opening to Afghan transit trade on 14 January 2020 marked an important milestone in developing bilateral economic ties between Pakistan and Afghanistan.
Gwadar Port strategic location connects Central Asia, South Asia, and the Middle East – making it a key link in global commerce.
Gwadar Port is rapidly becoming an international trade hub due to its deep-sea port and extensive road and railway networks that attract businesses worldwide.
Furthermore, Gwadar Port had reached full operationality and offered online booking for goods delivery – an important milestone in its development.
The modernization and digitization trend are expected to simplify trade and business operations, making the region more attractive for businesses looking to invest.
What Is The Expected Future Population Of Gwadar?
The proposed master plan for Gwadar involves a significant expansion of its population and economy, positioning it as a major regional economic hub.
The plan envisions a population of over two million, with a substantial portion being high-paid expatriate professionals.
Furthermore, experts predict the plan will strengthen Gwadar economy, causing it to grow considerably over time.
This expansion is expected to create many high-paying jobs, resulting in a high income per capita.
The potential for Gwadar is enormous and could play a significant role in economic development of Pakistan.
What Was The Amount Paid By Pakistan To Purchase Gwadar?
In 1958, Pakistan purchased the port city of Gwadar from Oman for Rs. 5.5 billion, which was equivalent to US$3 million at the time.
Aga Khan IV, a prominent Ismaili Muslim community spiritual leader, largely financed the transaction.
The agreement between the two countries allowed for the transfer of Gwadar’s control to Pakistan, previously a part of Oman’s overseas territories.
After the purchase, Gwadar was not immediately included in the Makran district of Pakistan. It was only in 1977 that Gwadar became a part of the newly-formed Balochistan province.
Today, Gwadar is considered a vital part of Pakistan’s economic development and plays a significant role in the country’s plans to become a regional trade hub.