The board of directors of Pace (Pakistan) Limited has approved the purchase of land in Dubai for a commercial development, marking the company’s first step into the international real estate market. The publicly listed firm, part of First Capital Group, announced the decision in a notification to the Pakistan Stock Exchange on Tuesday. The board also approved the creation of a wholly owned subsidiary in Dubai to execute the project. The CEO was authorised to carry out all necessary actions and formalities related to the business plan, with the discretion to delegate further responsibilities as required.
PACE, founded in 1995, specialises in the construction, acquisition, management, and sale of department stores, condominiums, supermarkets, shopping malls, residential complexes, and land developments. The company also engages in commercial and industrial ventures both within and outside Pakistan.
Why are so many Pakistani companies expanding into the UAE?
In recent months, several Pakistani firms have expanded operations in the UAE, particularly in Dubai. In July, Zarea Limited, one of Pakistan’s leading B2B trading platforms, established a wholly owned subsidiary in Dubai. In June, confectionery manufacturer Ismail Industries Limited announced plans to set up a subsidiary in Abu Dhabi. Treet Corporation Limited also successfully registered its wholly owned subsidiary, Treet Trading LLC, in Dubai.
The UAE’s appeal as a preferred destination for Pakistani businesses is driven by several factors:
- Simplified payment systems and international transaction processes
- A transparent and business-friendly regulatory environment
- Strong protection of property rights and contract enforcement
- Global market access through the UAE’s logistics and trade hubs
Experts note that setting up in the Emirates offers Pakistani companies a strategic advantage — leveraging the UAE’s global hub status, developed infrastructure, and stable legal framework. For businesses operating in volatile economies, the Emirates offer regulatory predictability and economic stability. According to real estate news today Dubai, there has been a steady influx of South Asian capital into the local market, as investors view the UAE as a haven for their assets amid uncertainty in regional economies.
PACE’s financial position and its ambitions in Dubai
As of September 2025, PACE’s current liabilities exceeded current assets by 5.624 billion rupees. The company reported accumulated losses of 3.978 billion rupees, resulting in a negative equity of 828.278 million rupees, raising significant doubts about its going-concern status.
In response, PACE is pursuing strategic investment opportunities to convert non-performing assets into revenue-generating ones. The company recently completed its First Capital Tower project and diversified into print and social media businesses. Rental income has also become a growing source of revenue.
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In addition to diversification, PACE is focusing on restructuring its debt to strengthen its balance sheet and maintain liquidity for ongoing operations. One measure includes issuing new shares under its ESOS programme at a 10% discount. The company is also converting 1.082 billion rupees worth of Term Finance Certificates (TFCs) into 120,266,424 ordinary shares, reducing outstanding liabilities and financial expenses.
For investors considering property purchases from developers entering the Dubai market, it is essential to understand the process of inheriting real estate on the local market. The inheritance framework in the UAE differs from that of other jurisdictions and requires proper documentation to protect family interests and ensure a smooth transfer of assets to heirs.
PACE has increased its authorised share capital from 6 billion rupees (600 million ordinary shares) to 18 billion rupees (1.8 billion shares). In the first quarter of the current financial year, the company divested its stake in PACE Super Mall (Private) Limited, and shareholders also approved the sale of its investment in Pace Barka Properties Limited. With a restructured debt profile, stronger capital base, and diversified revenue streams, PACE aims to enhance shareholder value in 2026 — using its expansion into the Dubai property market as a key step toward international growth.
