In a move to capitalize on the UAE’s business-friendly environment, Hoechst Pakistan Limited, formerly known as Sanofi-Aventis Pakistan Limited, has announced plans to set up a wholly foreign-owned subsidiary in the Gulf country.
The company disclosed this development on Friday in a notification to the Pakistan Stock Exchange (PSX). “The Board of Directors of Hoechst Pakistan Limited in its meeting held on December 19, 2024 gave its approval for the establishment of a wholly foreign-owned subsidiary in the UAE,” the notice said.
The subsidiary, subject to regulatory approvals, will primarily engage in commercial trade with ancillary activities such as import, export, distribution and warehousing, the notice added.
Following this announcement, Hoechst Pakistan share price closed at Rs 2,725.
UAE – Favorite destination for Pakistani companies
The UAE has become an attractive hub for Pakistani companies due to its simplified payment processes, favorable business environment, and strong contract execution. The UAE ranks ninth globally in contract enforcement and first in metrics such as “access to electricity,” and provides businesses with a strong infrastructure and legal framework.
Many Pakistani companies have already entered the UAE. Symmetry Group, a digital technology company, announced plans to create a subsidiary in September. In June, Ismail Industries Limited, a confectionery manufacturing company, revealed its subsidiary plans in Abu Dhabi. In addition, Treet Corporation Limited recently established 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 business hub with efficient regulations and access to international markets.
With Hoechst Pakistan joining this trend, this development underscores the growing attractiveness of the UAE as a gateway for Pakistani companies seeking international expansion and reach.