To capitalize on the favorable business environment in the United Arab Emirates (UAE), another listed Pakistani company, Hoechst Pakistan Limited, formerly Sanofi-Aventis Pakistan Limited, has announced plans to set up a subsidiary in the Gulf state.

The company informed the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“The Board of Directors of Hoechst Pakistan Limited, in its meeting held on December 19, 2024, gave its approval for the incorporation of a wholly owned foreign subsidiary in the UAE,” the notice read .

The incorporation is subject to all applicable regulatory approvals, the pharmaceutical company added.

“The subsidiary will be primarily engaged in trading with import, export, distribution and warehousing as ancillary activities,” it said.

At the time of writing, Hoechst Pakistan’s share price stood at Rs2,655, a decline of Rs55 or 2.03%.

The UAE has become a preferred destination for Pakistani businesses, which is largely due to the streamlined payment process, favorable business environment and better contract enforcement, among other reasons.

The Middle Eastern country ranks ninth – out of 190 – in contract enforcement. It is also ranked first in terms of “obtaining electricity”.

Due to this trend, several Pakistani companies have expanded their operations to the UAE.

Earlier in September, Symmetry groupa Pakistan-based digital technology company, has revealed plans to set up a subsidiary in the United Arab Emirates.

Last June, Ismail Industries Limiteda manufacturer of confectionery items, announced the establishment of a subsidiary in Abu Dhabi, United Arab Emirates.

In the same way, Treet Corporation Limited announced that it has successfully incorporated a wholly owned subsidiary, Treet Trading LLC, in Dubai, United Arab Emirates.

Experts believe that incorporating an office in the UAE provides Pakistani companies with a strategic advantage, allowing them to leverage a global platform with the required infrastructure and appropriate legal framework.