To capitalize on the business-friendly environment in the United Arab Emirates (UAE), another listed Pakistani company, Hoechst Pakistan Limited, formerly Sanofi-Aventis Pakistan Limited, announced plans to establish a subsidiary in the Gulf state.
On Friday, the company shared this development 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 incorporation is subject to all applicable regulatory approvals, the pharmaceutical added.
“The subsidiary will be primarily engaged in commercial trading with import, export, distribution and warehousing as its ancillary activities,” it said.
At the time of this report, the share price of Hoechst Pakistan stood at Rs2,655, a decrease of Rs55 or 2.03%.
UAE has become a preferred destination for Pakistan’s companies, which has a lot to do with the streamlined payment process, favourable business environment, and better enforcement of contracts among several other reasons.
The Middle Eastern country is ranked a highly ninth – out of 190 – on enforcing contracts. It is also ranked first on the metric of ‘getting electricity’.
Owing to this trend several Pakistani companies have expanded their operations to the UAE.
Earlier in September, Symmetry Group, a digital technology company based in Pakistan, disclosed the company’s plans to set up a subsidiary in UAE.
Back in June, Ismail Industries Limited, a manufacturer of confectionary items, announced to set up a subsidiary in Abu Dhabi, UAE.
Similarly, Treet Corporation Limited announced that it has successfully incorporated a wholly-owned subsidiary, Treet Trading LLC, in Dubai, UAE.
Experts believe incorporating an office in the UAE offers Pakistani companies a strategic advantage, enabling them to leverage a global hub with the required infrastructure and a proper legal framework.
Source: Brecorder
