Hoechst Pakistan to establish UAE subsidiary

KARACHI: Hoechst Pakistan Limited, formerly Sanofi-Aventis Pakistan Limited, has announced its decision to establish a wholly owned subsidiary in the United Arab Emirates (UAE), marking another step by Pakistani firms towards making the most of the Gulf state’s business-friendly environment.

In a notice to the Pakistan Stock Exchange (PSX) on Friday, the pharmaceutical company disclosed that its board of directors approved the move during a meeting held on December 19. “The subsidiary will be primarily engaged in commercial trading with import, export, distribution, and warehousing as its ancillary activities,” the company stated, adding that the incorporation is subject to all necessary regulatory approvals.

The UAE has increasingly become a preferred destination for Pakistani businesses due to its streamlined payment processes, favourable business environment, and strong enforcement of contracts. The Gulf state ranks ninth globally in enforcing contracts out of 190 countries and holds the top spot for ‘getting electricity,’ according to international metrics. In recent months, several Pakistani companies have announced their expansion into the UAE. In September, Symmetry Group, a digital technology firm, revealed plans to establish a subsidiary in the region. Earlier in June, Ismail Industries Limited, a leading confectionery manufacturer, announced a subsidiary in Abu Dhabi. Similarly, Treet Corporation Limited successfully incorporated Treet Trading LLC in Dubai.

Industry experts view such moves as strategic, enabling Pakistani companies to tap into the UAE’s robust infrastructure, global connectivity, and reliable legal framework. The Gulf state’s position as a regional hub offers opportunities for businesses to scale operations and reach international markets efficiently.

Hoechst Pakistan’s expansion into the UAE underscores the growing trend of Pakistani firms seeking to capitalise on the advantages offered by one of the Middle East’s most dynamic economies.