Invest in Gwadar

Gwadar is Pakistan's first planned international port city. Located on the coastal line of Balochistan province, Gwadar's Koh-e-Batil ridge can be seen jutting out of Pakistan's map into the Arabian Sea. Just opposite of Gwadar lies Oman on the Arabian Sea.

Gwadar's strategic importance was first identified by a US Geological Survey in 1954. The city was then under the administration of Sultanate of Muscat and Oman. In 1958, Pakistan purchased Gwadar for Rs 5.5 billion. In 1977, Gwadar was recognized as a district of Balochistan province.

Development in Gwadar didn't officially start until 2001, when Pervez Musharraf initiated the first phase of Gwadar development. At the time, Gwadar Port was handed over to Singapore Port Authority. However, the project was stalled due to lack of funds, security threats and other reasons. Still, the port managed to become operational by 2009 at a cost of $237 million.

In 2013, President  Li Keqiang discussed the possibilities of trade and economic corridor first with President Asif Ali Zardari, and then subsequently in 2014 with Premier Nawaz Sharif after the transfer of power in February 2013 elections.

The full scope of the project was devised under the Sharif regime. The army was another important stakeholder of the CPEC agreements and was also tasked with the crucial role of providing security to the entire CPEC route.

Gwadar has assumed central role in all of CPEC related developments. It is here that the Maritime Silk Route and the Silk Road Economic Belt intersect to ensure better connectivity across more than 60 countries of Europe, Asia and Africa.

Accordingly, China initiated a series of more than 20 mega development projects under China-Pakistan Economic Corridor that include road, infrastructure and energy projects scattered throughout Pakistan. Funding for most of the projects has been provided by Chinese banks in the form of grants and soft loans. As much as $51 billion has been announced for these mega projects that are expected to bring an economic revolution in Pakistan and set it on the path of success and prosperity.

Gwadar city will see major investments in the city infrastructure as well as Gwadar Port. The port is being expanded to accommodate ships of larger dead weight tonnage. Nine new multipurpose berthing areas are scheduled for completion in the next 4 to 5 years. A 19-km East Bay expressway has been approved for channeling trade from Gwadar Port onto Gwadar industrial area and Makran Coastal Highway.

A special economic zone is being established in Gwadar on the lines of special economic zones of China by China Overseas Port Holding Company (COPHC) for $2 billion.

Other development plans for Gwadar city include a water treatment facility worth more than $100 million, a 300-bed hospital, a 4000-acre Gwadar International Airport worth $230 million. The airport is scheduled for completion over a course of 30 months. A 300 MW coal power plant is also being installed to meet Gwadar's power needs. Yet another 360 MW coal power plant will be installed to meet the power needs of Gwadar port and industrial area.

Invest in Gwadar today to reap the full benefit of these mega developments projects. Economic indicators are very positive. The Karachi Stock Exchange hit an all-time high just in the last week. Investors from all parts of Pakistan are flocking to Gwadar to invest in genuine business opportunities there. History is presenting Pakistan with a unique opportunity that may not come again for decades.

Today, the projects are only starting to realize. Check out the table below from CPEC's official website, CPECinfo.com, updated as of December, 2016 to see the status of different CPEC-related projects in Gwadar:

As you can see in the table above, several projects have almost reached the 50% completion mark, including the airport, Expressway and Free zone, while the Gwadar Primary School project has successfully been completed.

Consider also that in the first phase of development of Gwadar city and port, only $230 million worth of investment was made into Gwadar. On the contrary, Gwadar today is being poured investments in the range of $4 billion to $5 billion.

Further, all of the major stakeholders seem to be on the same page as far as Gwadar is concerned, including armed forces, federal and provincial governments, media and general public. This is sending a strong signal to the world. For this reason, as many as 30 countries have expressed their eagerness to become part of CPEC. This includes some of the world's most economically advanced countries, including UK, France, Germany, Russia and the central Asian states.

Investment Opportunities in Gwadar

Gwadar offers a range of investment opportunities. Consider any business in the world, and the feasibility in Gwadar will more or less be positive. That said, timing is an important factor when it comes to making investment decisions. Your ultimate objective should be to identify opportunities that not only safeguard your investment but also multiple the returns in a short time period.

To make the right investment in Gwadar, it is important to understand the rules and regulations pertaining to investors. You should also study Gwadar's 50-year development plan under which the development of Gwadar has been split across Master Plan A, B and C.

Master Plan A concerns with residential and commercial investment projects that are within 25km of Gwadar Zero Point. Roads to Master Plan A projects have been completed. Water provision is guaranteed till project doorstep.

Master Plan B projects lie within 25km to 50 km of Gwadar Zero Point and their development is not expected in the next 15 to 20 years.

Master Plan C projects exist beyond the 50km radius of Zero Point and go as far as Jiwani and further ahead till Iran border some 100 km from Gwadar.

Development in Master Plan A, B and C is regulated by Gwadar Development Authority (GDA), which is a government body raised in 2003 along the lines of CDA, LDA and RDA etc. GDA has issued NOCs to genuine residential housing projects along Gwadar's West Bay, which may be termed as Gwadar's residential zone. Some 84 NOCs have been issued by GDA to different housing projects to date. At present, GDA is not issuing new NOCs to any projects. 

Gwadar Industrial Estate Development Authority (GIEDA) also raised in 2003, is the body responsible for regulating the development of industrial zones of Gwadar along the East Bay.

Basically, you now have two to three options. One option is to invest in open land that is unregulated by GDA or GIEDA. The next option is to purchase land that is in fully developed parts of Gwadar, such as New Town. However, prices of fully developed residential and commercial plots may not be within reach of small investors anymore.

In our view, the best strategy is to locate investment options that are scheduled for development in the near future. This includes several nameworthy projects in Gwadar's  Master Plan A.

GDA has recently expired the NOCs of Master Plan A projects due to non-development. To reinstate their NOCs, GDA requires the respective housing projects to begin development in their areas of responsibility.

This may also be verified from GDA's official website, www.gda.gov.pk/pages/gdaoffers.html. On this page, you will see three different statuses of projects:

i. those with NOCs conditionally restored: it is safe to invest in these projects. However, we still recommend that you study the NOC of the project. If you see the text "/B" in the NOC, it is a Master Plan B project, so not much point in investing their unless you're investing for your grandchildren.

ii. those with NOCs expired

It is still safe to invest in these societies. However, make sure that the NOC is restored before you invest in the project. Also, study the individual project as well as its NOC to ensure it is not a B category project.

iii. those with NOCs suspended

Definitely some problem with the NOC, could be a dispute or a counter claim on the land due to which the NOC stands suspended. Strongly advised not to invest until the NOC is restored

Example of project with suspended NOC, also as you can see from the NOC in this example, it says "GDA(B)", meaning it is a B category project

Infrastructure for Master Plan A projects is par stellar. These projects are being developed according the international development standards. Gwadar's soil has been tested to be very suitable for hi-rise towers. In Master Plan A of Gwadar, the residential zone is getting a wide range of attractions including:

• state of the art beach resorts hotels, hi-rise towers and other buildings
• CM houses of all 4 provinces and governor house
• Supreme Court building
• 100-acre roundabout at the center of which China is creating a revolving restaurant
• Diplomatic enclave for which more than 60 acres of land has been dedicated
• Theme parks and cultural attractions

Not a single drop of waste may be dropped into the open sea, leading to a clean, hygienic and green lifestyle. 

Master Plan A projects already have a fully-developed network of more than 10 major highways and avenues intersecting them. Road is the biggest obstruction in the development of any project, so the remaining development works can be finalized in 6 months to a year's time.

We have a vast range of genuine investment opportunities in Gwadar's Master Plan A projects. Contact us today for the best investment opportunities on full payment as well easy installment plans.