In a move to capitalize on the United Arab Emirates’ (UAE) business-friendly environment, Hoechst Pakistan Limited, previously known as Sanofi-Aventis Pakistan Limited, has announced plans to establish a wholly owned foreign subsidiary in the Gulf state.
The company disclosed the development on Friday in a notice to the Pakistan Stock Exchange (PSX). “The Board of Directors of Hoechst Pakistan Limited in its meeting held on December 19, 2024, has accorded its approval for incorporation of a wholly owned foreign subsidiary in the UAE,” read the notice.
The subsidiary, subject to regulatory approvals, will primarily engage in commercial trading with ancillary activities such as import, export, distribution, and warehousing, the notice added.
After the announcement, Hoechst Pakistan’s share price closed at Rs2,725.
UAE – a preferred destination for Pakistani companies
The UAE has become an attractive hub for Pakistani businesses due to its streamlined payment processes, favorable business environment, and strong enforcement of contracts. Ranked ninth globally for contract enforcement and first in metrics like ‘getting electricity,’ the UAE offers companies a robust infrastructure and legal framework.
Several Pakistani firms have already ventured into the UAE. Symmetry Group, a digital technology company, announced plans to set up a subsidiary in September. In June, Ismail Industries Limited, a confectionery manufacturer, revealed its subsidiary plans in Abu Dhabi. Additionally, Treet Corporation Limited recently incorporated Treet Trading LLC, a wholly owned subsidiary, in Dubai.
Experts highlight that establishing operations in the UAE allows Pakistani companies to gain strategic advantages by leveraging a global trade hub with efficient systems and access to international markets.
With Hoechst Pakistan joining the trend, this development underscores the growing appeal of the UAE as a gateway for Pakistani businesses seeking expansion and international reach.
