Pakistan's New UAE Dirham Certificate Offers Earn Up To 7.5% Profit

2026-06-04 11:22:15

(MENAFN- Khaleej Times) Pakistani expatriates in the UAE now have a new way to invest back home without having to convert their earnings first.

The State Bank of Pakistan (SBP) has expanded its Naya Pakistan Certificates (NPCs) to include the UAE dirham and Saudi riyal, effective June 1, removing a longstanding friction point for Gulf-based investors who previously had to route funds through dollar or rupee accounts.

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The dirham-denominated certificates offer returns starting at 6.50 per cent for a three-month term, rising to 7.50 per cent for a five-year investment. The dirham investments will be processed through First Abu Dhabi Bank via SBP's designated Nostro accounts, while SAR investments will flow through the Saudi National Bank, the Associated Press of Pakistan reported.

There are more than two million Pakistanis living and working in the UAE.

By denominating the certificates in dirhams, Pakistan government is making a direct pitch to its community in the UAE, allowing UAE-based Pakistanis to park savings in a familiar currency while earning fixed returns, without taking on rupee exchange-rate risk on the principal.

In addition, the SBP simultaneously raised returns on rupee-denominated NPCs. The revised Pakistani rupee rates, also effective June 1, stand at 11.75 per cent for a three-month term, 12 per cent for six months, 12.25 per cent for 12 months, 12.50 per cent for three years, and 12.75 per cent for a five-year certificate. The previous rates, notified in March 2026, ranged from 10.75 per cent to 11.50 per cent.

The NPCs remain available in US dollars, British pounds and euros as well. Dollar and pound certificates offer returns between 6.75 per cent and 7.75 per cent, and 6.75 per cent to 8.00 per cent, respectively, while euro-denominated certificates range from 4.75 per cent to 6.25 per cent.

The NPC scheme has its roots in the broader drive to formalise the financial relationship between Pakistan and its overseas diaspora. Pakistan's efforts to attract UAE and Gulf-based diaspora investment date back to the launch of the Pakistan Banao Certificate in 2019, which offered dollar-denominated returns and was specifically targeted at overseas Pakistanis in the Gulf region, with the government at the time describing it as a way to tap diaspora savings and bolster the country's foreign exchange reserves.

Pakistani officials have consistently urged expats to use formal banking channels for remittances, arguing that official transfers strengthen economic transparency and support the financial system. The dirham option now makes that case easier as expats no longer need to convert their savings before investing.

The minimum investment for foreign currency-denominated certificates, including the new dirham and riyal options, has been set at 1,000 currency units.