UAE Backs Pakistan Army’s Fauji Foundation, Turning It Into a Financial Powerhouse

Islamabad: Pakistan’s Fauji Foundation, owned and operated by the Pakistani Army, has long been described as a highly profitable “money-making machine” with stakes in nearly every lucrative business across the country. From military complexes and cement manufacturing to fertilizers, electricity, real estate, banking, and even stock market investments, the Fauji Foundation dominates multiple sectors.

UAE Investment Boost
Recently, a consortium led by Karachi-based brokerage firm Arif Habib Limited (AHL) acquired a 75% stake in Pakistan International Airlines (PIA). Soon after, Fauji Fertilizer Company (FFC), a publicly listed military-owned company, withdrew from the bidding process, reportedly to avoid accusations of collusion. Meanwhile, in the midst of Pakistan’s economic crisis, the UAE was allowed to acquire nearly $1 billion in Fauji Foundation shares, with expectations of a $2 billion debt rollover from Abu Dhabi.

Pakistan Army’s Economic Reach
The Fauji Foundation forms part of a larger military-corporate network that includes the Navy’s Bahria Foundation and the Air Force’s Shaheen Foundation. Together, these entities operate in sectors ranging from insurance and shipping to real estate development. Additionally, the Army Welfare Trust (AWT) manages more than two dozen commercial companies, while the Defence Housing Authority (DHA) controls prime real estate across the country. Through these structures, the Pakistani military wields considerable influence over both defense and the national economy.

A Legacy of Growth
Founded in 1952 with an initial capital of just $3.6 million from the British colonial administration, the Fauji Foundation was originally intended to support the welfare of soldiers’ families. Today, it oversees at least 25 listed companies, alongside numerous unlisted subsidiaries. According to the 2025 Wealth Perception Index by the Economic Policy and Business Development Think Tank (EPBD), the Fauji Foundation’s total net worth is estimated at $5.9 billion, making it the largest corporate conglomerate in Pakistan.

Conclusion
The Fauji Foundation exemplifies the intertwining of Pakistan’s military and corporate sectors, showcasing how strategic investments and international partnerships—like the UAE stake—have transformed it into a financial powerhouse while maintaining its foundational military ties.