Awesome! Analysis of UAE-India relations

[raj76]

china is investing 45 bill in 15 yrs thats like 3 bill per annum (avg) most if not all the development will be done by the chinese firms (so china will invest in pakistan but money would be given to chineses firms) labour may be of pakistan and i have read viewed some of u r analysts that u r govt has agreed with china that they will guarantee 12%+ ROI ( my figure is less of what i heard) on dollar to these chinese firms or investments. and all of the trade is dependent on china what they wanna use it for because u dont have anything to offer them pls correct me where i am wrong. Also they are bringing coal powered power projects which they are getting rid off by 2020 ( u can search on google). also i read somewhere u will be importing coal for these projects really!!

 

[nForce]

As if Chinese management only hire Chinese only in Pakistan?

No they hire Martians too. Don't quote me again.

 

[Arush]

Except the amount doesn't matter, its how the investment is made that matters. That's investment 101.

Look at Afghanistan, and Iraq. It's estimated that the US has invested more than half a trillion dollars in infrastructure, security, education, and energy projects, but 90% have been completely and utterly worthless. The bigger a project gets, the easier it is for it to fail.

The reason why businesses are moving to India is because of the long term impact. A dollar put into buying Indian stocks may grow double or triple within a few years.

Also, don't just look at total amount, look at percentage wise, how much that's worth. What may be a large investment in Somalia, would be a simple write off for most other nations.

An investment of $75 billion is an okay amount, if you take into account India's huge economy, and it's potential impact on India's economy. While, Pakistan being a middle economy, $46 billion is a large investment (almost a fifth of Pakistan's nominal GDP), which takes into account that the Gwadar port is set to become one of the busiest ports in the region, and one of the largest in the world, thus the long term impact (if the project succeeds) is huge, with potentially massive return on investment. That's not even mentioning the money would bring in much needed jobs, work on energy projects (doubling Pakistan's current capacity) and/or upgrading and building new (much needed) infrastructure.

$46 billion is chump change for India, but taking percentage and rates into account, the equivalent amount for India (if India's current GDP is $2 trillion) would be around $400 billion, meaning it would take this much to have the same type of impact on India's economy.

I am in total agreement with you but can you tell me that out of 46 billion how much is investment and how much are loans and what are the intrest rate on loans

 

[Stealth | Hawk]

All the Indians here and their immature "75>46" shows their ignorance.Look at the size of your country.Let me do the Maths for you:
India is approximately 4.1 times larger than Pakistan.Lets do it 4.
China is investing 46 Billion in Pakistan so for a country 4 times larger the investment should be 46x4= 184 Billion but it's 75 billion only.Hence if we look at economy and country size,our 46 Billion will benefit us more than your 75 Billion.Of course if t would have been 184 billion then I would have said equal investment is done.And that 4 times larger part is only in AREA.I haven't even started talking about Economy yet.This is not Kindergarten where "75>46"

 

[homagnibhatt]

All the Indians here and their immature "75>46" shows their ignorance.Look at the size of your country.Let me do the Maths for you:
India is approximately 4.1 times larger than Pakistan.Lets do it 4.
China is investing 46 Billion in Pakistan so for a country 4 times larger the investment should be 46x4= 184 Billion but it's 75 billion only.Hence if we look at economy and country size,our 46 Billion will benefit us more than your 75 Billion.Of course if t would have been 184 billion then I would have said equal investment is done.And that 4 times larger part is only in AREA.I haven't even started talking about Economy yet.This is not Kindergarten where "75>46"

True. FDI per captita would be reasonable metric for comparison. UAE, though is not the only FDI source for India. Would be interesting to compare FDI per capita of India & Pakistan in the past year (removes historical bias & gives better account of current trends).

 

[That Guy]

I am in total agreement with you but can you tell me that out of 46 billion how much is investment and how much are loans and what are the intrest rate on loans

From what I know (and there is a lot of misinformation out there, so forgive me if I'm wrong) $46 billion is completely investment, but there is another few billion ($4-6 billion) that are loans for energy projects that Pakistan itself is carrying out.

Though, I'm not completely sure. I could be completely wrong here.

It's important to keep in mind that before the $46 billion was announced, the total that China was rumored to be willing to put up financially (loan and investment) was somewhere between $50-60 billion, if this is true, total loans may amount to over $10 billion.

Now, of course all this money isn't being spent over night, and will be spent over the course of 5 years, with the majority in 3 year, which is something everyone seems to forget.

Either way, you can't make money, if you don't spend money.

 

[Infinity]

You have no idea what 'new road' you're talking about. Time will tell.

By the Time Gwadar Port is ready..................Middle East will have no OIL

 

[SrNair]

From what I know (and there is a lot of misinformation out there, so forgive me if I'm wrong) $46 billion is completely investment, but there is another few billion ($4-6 billion) that are loans for energy projects that Pakistan itself is carrying out.

Though, I'm not completely sure. I could be completely wrong here.

It's important to keep in mind that before the $46 billion was announced, the total that China was rumored to be willing to put up financially (loan and investment) was somewhere between $50-60 billion, if this is true, total loans may amount to over $10 billion.

Now, of course all this money isn't being spent over night, and will be spent over the course of 5 years, with the majority in 3 year, which is something everyone seems to forget.

Either way, you can't make money, if you don't spend money.

Why cant you convince other nations to invest in Pakistan.?
In Indias case 75 billion $ is from UAE only.And wealready knows the investment plan from Japan,US,China ,Russia,South Korea a lots of other nation.


But Pakistan is only interested CPEC .They dont interestedin diversifying the investment.why ?
It is bit weird when you rely on a single nation for investment .Isnt it ?

 

[Stealth | Hawk]

Why cant you convince other nations to invest in Pakistan.?
In Indias case 75 billion $ is from UAE only.And wealready knows the investment plan from Japan,US,China ,Russia,South Korea a lots of other nation.


But Pakistan is only interested CPEC .They dont interestedin diversifying the investment.why ?
It is bit weird when you rely on a single nation for investment .Isnt it ?

You have to start somewhere and this Investment is all talk of the town because of its Importance not judging by its cost but its Importance in the region.Other than that there are many other nations investing in Pakistan for example a recent thread on PDF showed the investments of UAE and Switzerland etc in Pakistan.

 

[saurav]

No it is India who insists on "Make in India", its you guys who expect others to shift their factories in Bharat. But carry on with the BS.

Actually Make in India has already started to attract investment. Ironically many of them are from your " higher than mountain " friend. But you go on. Be happy with toll tax.

 

[That Guy]

Why cant you convince other nations to invest in Pakistan.?
In Indias case 75 billion $ is from UAE only.And wealready knows the investment plan from Japan,US,China ,Russia,South Korea a lots of other nation.


But Pakistan is only interested CPEC .They dont interestedin diversifying the investment.why ?
It is bit weird when you rely on a single nation for investment .Isnt it ?

Other nations are investing in Pakistan. One of the bigger investors are actually Switzerland, and Japan. You don't hear about other investors as much, because they don't have geopolitical side to their investments; for them, its purely business, and their investment tends to reflect that (not too big, not too small).

 

[GURU DUTT]

@Echo_419 @magudi (if u can understand) @jaatram @JanjaWeed etc etc

in short pkaistani tazianiaargs are so desparate as what they call "pakistan me 46 billion $$s ki chini sarmaykaari ki wajah se hmare pair jameen pe nahi lag rahe hain"

but at the same time think what india is doing is not clear but feel threatened by it some how

but use all the beutifull words to pat their backs themselfs

end result = india will do what in indias interest and they are "bokhlaye hue deu to increasing prosperity in pakistan"

i wonder what do you call it .... bandar ko milli haldi ki ganth pansaari ban baitha

 

[nForce]

Other nations are investing in Pakistan. One of the bigger investors are actually Switzerland, and Japan. You don't hear about other investors as much, because they don't have geopolitical side to their investments; for them, its purely business, and their investment tends to reflect that (not too big, not too small).

Can you give us any idea about the size and nature of the investments ?

 

[Saahil84]

Folks,

Has anyone noticed that Pakistan's "strategic depth or space" just got smaller? Pakistan has lost Saudi, UAE and Afghan goodwill for the foreseeable future. Iran is also looking to India for its future. All rich GCC countries realize that days of oil revenue based economy are over due to global oil glut. They need to revamp their economies into technology and finance based models to avoid civilian revolt. You will find that India is the new darling for the GCC as a stable and high growth / high tech economy. Pakistan has already lost the plot wrt to GCC.

Modi will make sure that Pakistan cannot regain this strategic space ever . It will be forced to lean more and more on china which will infuriate US. Sooner or later Pakistan will have to rely on Chinese navy to protect Gwadar which negatively impinges on US security in the upper Arabian sea so close to Manama (5th fleet) or Strait of hormuz. Balancing US with Chinese interest will be a nightmare for pakistan. China will fleece pakistan for any level security it has provide to push back America and India. Surely this will be time to sit back with popcorn and enjoy the show.

Modi is astute enough to ensure that most of the 75B investment from UAE is invested in northwest India making UAE a stakeholder in curbing terrorism emanating from pakistan. India is eating pakistan's lunch while laughing all the way to the bank!

I think you are partly correct in your analysis. Yes, the goatherds' days of lording it over South Asians is over; it was bound to be some day or the other. However, as nice as it would be to see the end of Arab hegemony, it poses it's own set of problems. I will write about that in a separate post.

But I am not sure about your conclusion that all these developments are to the exclusion of Pakistan. As has become obvious, the GCC is now looking towards investing its money as FDI in developing economies. There is no reason as to why, if the security situation in Pakistan improves, they wouldn't want to invest there. I know that's a big "if", but really, that is the biggest variable. Its not like India does a particularly good job of competing economically with any country that is relatively stable. Bangladesh and Vietnam are two examples that come to mind - India has been superseded by these countries in niche manufacturing. No reason Pakistan cannot do so as well. But the security situation, I concede, is a dicey affair.

 

[Super Falcon]

One thing they forget UAE was also against gwadar project once gwadar opens fully jabel ali will nose down

UAE should do what is in its interest but do not harm other brotherhood muslim countires with help of india.

Pak growth is growth of entire Muslim umah people of pak welcome every arab with great feeling

UAE must not forget PAK help them in fields of airforce navy and other fields to

GREAT SHEIKH ZAYED BIN SULTAN AL NAHYAN
ALLAH KAREEM give him greatest place in heaven.

Have great love for pakistan znd for people of pakistan

Hope his SONS will not forget his preachings

And big thing which you missed

Modi did not meet with A man of UAE

SHEIKH KHALIFA BIN SULTAN AL NAHYAN
PRESIDANT OF UAE
SUPREME COMMANDER OF UAE POLICIES