Pakistani textile firm Sapphire Fibres establishes UAE arm, to invest $200,000

Sapphire Fibres Limited (SFL), one of Pakistan's leading textile manufacturers, has established a wholly owned subsidiary in the United Arab Emirates (UAE) as part of its strategy to expand its international operations and strengthen its global business presence.

 

In a notification submitted to the Pakistan Stock Exchange (PSX) on Wednesday, the company announced that it has incorporated Saphir Holding L.L.C-FZ in the UAE after completing all required legal and regulatory formalities.

 

Following the incorporation, Sapphire Fibres is in the process of remitting $200,000 as equity investment in the newly established subsidiary.

 

The company stated that the UAE-based entity has been created to support its efforts to explore new international business opportunities and broaden its global footprint.

 

Established in 1979, Sapphire Fibres Limited is a publicly listed Pakistani company engaged in the manufacturing and sale of yarn, fabric, and garments. The company operates three production facilities, with two plants located in Sheikhupura and one in Lahore.

 

In recent years, SFL has pursued a strategy of diversification beyond its core textile business.

 

Last year, the company acquired a 50% stake in UCH Power (Private) Limited, a 586-megawatt gas-fired power plant, and a 50% stake in UCH-II Power (Private) Limited, a 404-megawatt gas-based power plant, both situated in Dera Murad Jamali, Balochistan.

 

The company has also been expanding its international operations through its wholly owned U.S. subsidiary, Sapphire USA, LLC. Earlier, it announced plans to inject an additional $2.5 million in equity into the U.S. business, following a $5 million investment made in March 2025, with the objective of strengthening its market presence in the United States and improving long term profitability.

 

Additionally, in September last year, the Board of Directors approved a scheme to merge Reliance Cotton Spinning Mills Limited (RCSML), an associated company, into Sapphire Fibres as part of its corporate restructuring strategy.