1. Corporate Introduction

BABA FARID GLOBAL TRADING - FZCO is a Free Zone Company (FZCO) incorporated under the International Free Zone Authority (IFZA), Dubai, United Arab Emirates. The company operates as an international trading entity specializing in the export of premium-grade Pakistani rice sourced directly from accredited producers. The business model is aligned with UAE Central Bank standards, FATF recommendations, and applicable free zone regulations, ensuring transparency and robust compliance.

2. Executive Summary

BABA FARID GLOBAL TRADING - FZCO conducts international food commodity trading with a primary focus on the export of premium Pakistani rice varieties including 1121 Basmati Rice (Long Grain), Steam Basmati, Super Kernel, IRRI-6, and long-grain parboiled rice. The company’s operating model is fully documented, low-risk, and designed for clean, transparent financial flows. Documentation-driven export control, strict compliance oversight, and digital recordkeeping form the foundation of the company’s operational reliability.

3. Company Background & Legal Structure

The company is registered under IFZA Dubai as a Free Zone Company (FZCO), holding licensing for international food commodity trading activities. It maintains a compliant administrative presence through a flexi-desk arrangement, facilitating cost-effective operations while meeting regulatory requirements. Ownership is equally shared among three partners, each holding 33.33% equity.

4. Shareholding Structure & Governance

The governance framework is based on clear role distribution, compliance oversight, and structured operational controls. Each shareholder contributes domain expertise: finance and compliance oversight, supply chain coordination, and export logistics management.

5. Business Purpose & Operating Mandate

BABA FARID GLOBAL TRADING - FZCO serves as a compliant and transparent trading platform connecting global rice buyers with certified and credible producers in Pakistan. The mission is to ensure consistent supply, strong governance, and risk-controlled international trade.

6. Corporate Bank Account Purpose Statement

The UAE corporate bank account will be used strictly for documented trade transactions. Incoming funds will originate exclusively from verified buyers, while outgoing payments will be directed only to suppliers and approved logistics partners. The company enforces a zero-cash and zero–third-party payment policy.

7. Ownership Profiles

8. Industry Overview

The global rice industry is one of the most stable and strategically essential agricultural markets, driven by consistent consumer demand across Asia, the GCC, Africa, Europe, and North America. Rice remains a dietary staple for more than half of the world’s population, resulting in predictable demand patterns and resilient trade flows. Pakistan remains a key player in the export of premium aromatic basmati rice while also supplying lower-cost non-basmati varieties such as IRRI-6 and parboiled long grain rice.

9. Global Rice Market Analysis

The global rice market is shaped by consumption growth in Asia and Africa, rising demand for premium basmati varieties, and diversified import needs across the GCC and Western markets. The Middle East accounts for most Pakistani basmati imports, driven by strong consumer preference and established market channels.

10. Export Market Landscape

Key export markets include Saudi Arabia, UAE, Oman, Kuwait, UK, EU member states, Canada, and the United States. These regions demonstrate stable year-round demand and strong price tolerance for premium basmati rice.

11. Ultra-Detailed Product Specifications

All rice varieties exported under BABA FARID GLOBAL TRADING - FZCO meet international standards, including PSQCA, Codex Alimentarius, GCC food import regulations, and other global safety protocols. Product specifications include HS codes, moisture thresholds, grain length, purity levels, defect tolerances, packaging formats, and container loading standards.

12. Supplier Capacity & Compliance Overview

Baba Farid Rice Mills maintains an annual milling capacity of 75,000–90,000 MT with integrated cleaning, polishing, grading, sorting, and packaging systems. Compliance includes REAP certification, PSQCA quality assurance, and adherence to international food safety guidelines.

13. Operational Workflow (Multi-Stage Narrative)

The operational workflow consists of five core phases: Buyer Acquisition & Verification, Commercial Confirmation & Supplier Alignment, Processing & QC, Stuffing & Export Execution, and Post-Shipment Financial Settlement. Each phase includes documentation requirements, compliance checks, and process controls ensuring transparency and traceability.

Supplier–Buyer Flowchart

The following chart illustrates the direct, documented flow of goods and funds in a typical transaction.

Physical Goods Flow: Supplier: Baba Farid Rice Mills (Pakistan) → Direct Export (FOB/CIF) → International Buyer Port → Delivery to importer/distributor → International Buyer.

Financial Flow: International Buyer → BABA FARID GLOBAL TRADING - FZCO → Supplier. All payments are strictly via documented bank transfers.

14. Systems, Technology & Document Management

All documentation is stored in encrypted cloud systems with restricted access, timestamped archival, and redundancy. Documents include KYC/KYS files, invoices, packing lists, BLs, COO, phytosanitary certificates, and compliance logs.

15. Shipment Process Lifecycle

The shipment lifecycle includes commercial agreement, QC verification, container stuffing, export documentation, vessel departure, payment receipt, supplier settlement, and archival. Each step is supported by compliance verification.

16. Financial Model Assumptions

This financial model represents a conservative projection of BABA FARID GLOBAL TRADING - FZCO’s Year 1 operating performance. Assumptions include export volumes, pricing ranges, supply chain costs, and operating expenses. All projections follow a documentation-driven, low-risk trading profile aligned with UAE banking expectations.

17. Monthly Forecast Tables (Year 1)

18. Annual Summary Table

19. Break-Even Analysis

With extremely low fixed overhead, the business achieves break-even after approximately THREE containers annually. This demonstrates high financial resilience and a strong buffer for conservative banking review.

20. Sensitivity Analysis

Three scenarios were analyzed to assess risk exposure:

• A) Price Drop (-5%): Profit impact approx. AED -180,000 annually.
• B) Increase in Supplier Cost (+5%): Profit impact approx. AED -160,000 annually.
• C) Volume Reduction (-5 containers/year): Profit impact approx. AED -100,000 annually.

Despite stresses, the business remains profitable and cash-positive.

21. Cash Flow Implications & Financial Performance Chart

Cash flow stability is driven by prepayment or LC-based transactions from buyers. Supplier payments are made only after documentation verification. A strict zero-cash policy ensures transparent, fully auditable inflows and outflows.

22. Regulatory Compliance Statement

BABA FARID GLOBAL TRADING - FZCO maintains strict adherence to the UAE’s federal AML/CTF regulatory environment and international FATF standards. The company’s compliance program aligns with Federal Decree Law No. 20 of 2018 (AML/CTF) and Cabinet Resolution No. 10 of 2019, incorporating clear operational controls, risk-based monitoring, and documented procedures. The company is also aligned with UAE Central Bank AML/CFT guidelines applicable to Designated Non-Financial Businesses and Professions (DNFBPs).

23. AML/CTF Governance Structure

The General Manager serves as the AML/CTF Compliance Officer, responsible for oversight of KYC/KYS processes, due diligence, sanctions screening, transaction monitoring, and escalation of suspicious activity. The company implements a three-tier governance structure that includes operational controls, compliance oversight, and internal governance review.

24. Know Your Customer (KYC) Program

The KYC program incorporates verification of customer identity, beneficial ownership (UBO) transparency, sanctions screening, and jurisdictional risk scoring. Documents collected include Trade license, UBO passports, business registration certificates, import licenses, and customer information forms. Screening is performed against UN, OFAC, EU, HMT, and UAE list prior to onboarding and before each new trade cycle.

25. Know Your Supplier (KYS) Procedures

Given the exclusive supplier partnership with Baba Farid Rice Mills, KYS procedures include verification of export licenses, factory registration, compliance certifications, quality assurance logs, and sanctions screening. The supplier has a low-risk profile and a long export track record, supported by documented QA/QC processes.

26. Enhanced Due Diligence (EDD)

EDD is applied where buyers operate from moderate- or high-risk jurisdictions, request complex routing of goods, or require unusual payment structures. EDD measures include obtaining audited financials, supply chain breakdowns, purpose-of-transaction clarifications, and higher frequency transaction monitoring.

27. Transaction Monitoring Framework

BABA FARID GLOBAL TRADING - FZCO monitors every transaction using a risk-based approach. Controls include pre-transaction matching of invoices, POs, and shipment documents; verification that payments originate from the approved buyer; and ongoing monitoring of trade consistency. Any anomalies in value, timing, counterparties, or routing trigger compliance review.

28. Sanctions Screening Program

Sanctions screening is performed at onboarding and repeatedly at key transaction stages. Screening is conducted against OFAC, UN, EU, UK HMT, and the UAE local terrorist list. The company strictly prohibits trade with any sanctioned entity, organization, or individual, and immediately rejects transactions involving high-risk jurisdictions.

29. Documentation Control & Recordkeeping

All KYC/KYS files, commercial documents, shipping records, and financial transaction logs are archived digitally for a minimum of five years, with many retained for seven years depending on audit requirements. Cloud storage is encrypted, access restricted, and subject to internal periodic review.

30. Red Flag Indicators & Response Protocol

Red flags include discrepancies between buyers and payers, requests for over/under-invoicing, unusual urgency to alter documentation, and diversion of goods to unapproved destinations. When triggered, the compliance officer initiates enhanced review, temporarily halts further processing, and seeks clarification. Suspicious activity is escalated internally and documented in the compliance log.

31. Policy on Third-Party Payments

The company enforces a strict zero–third-party payment policy. Payments must originate from the invoiced buyer’s bank account and must match the legal entity name provided during onboarding. Any attempt to use unrelated accounts results in transaction rejection.

32. Geographic Risk Controls

Jurisdictions are classified as low, medium, or high risk based on FATF guidance and internal scoring criteria. Preferred low-risk markets include the GCC, UK, EU, USA, Canada, Malaysia, and Singapore. Medium-risk markets undergo enhanced due diligence, and high-risk FATF jurisdictions are strictly prohibited.

33. Product Risk Assessment

Rice is classified as a low-risk commodity under AML/CTF frameworks due to its non-dual-use nature, transparent pricing mechanisms, high documentation requirements, and low potential for trade-based money laundering. The company further reduces product-related risk by maintaining a single, well-documented supplier relationship.

34. Enterprise Risk Assessment Overview

BABA FARID GLOBAL TRADING - FZCO conducts a comprehensive assessment of operational, transactional, geographic, supplier, and compliance risks in accordance with UAE Central Bank and FATF standards. The overall risk profile is considered low-to-moderate due to a simple business model, documented financial flows, limited counterparties, and strong governance procedures.

35. Operational Risk

Operational risks include delays in documentation, QC discrepancies, freight scheduling issues, and human error. Mitigation controls include standardized workflow procedures, supplier QC logs, cloud-based documentation, and multi-layer verification of shipping documents.

36. Transaction Risk

Transaction risk stems from incorrect payment details, third-party payment attempts, or discrepancies between commercial documents and financial flows. Mitigation includes strict enforcement of a zero–third-party payment policy, payment screening, and invoice–BL–packing list reconciliation.

37. Supplier Risk

Supplier risk relates to production delays, price volatility, and quality inconsistency. Baba Farid Rice Mills maintains a strong compliance and production record with export-grade capacity. Mitigation includes long-term partnership, documented QA/QC, and secondary mill contingency options.

38. Customer Risk

Customer risk includes financial instability, weak compliance posture, or high-risk jurisdictions. KYC, UBO verification, sanctions screening, and transaction monitoring ensure controlled onboarding and risk scoring.

39. Geographic & Sanctions Risk

Geographic risk is based on FATF classifications. The company restricts trade with sanctioned or embargoed countries. Preferred markets include GCC, EU, UK, USA, and Canada. Moderate-risk markets undergo enhanced due diligence.

40. Risk Mitigation Framework

Risk controls include governance oversight, operational SOPs, compliance screening, financial flow controls, and comprehensive documentation practices. Regular monthly reviews and annual assessments ensure continuous improvement.

41. UAE Domestic Expansion Strategy

BABA FARID GLOBAL TRADING - FZCO intends to strengthen its operational footprint within the UAE over the next 24–36 months. The UAE serves as a strategic global trade hub connecting Asia, Africa, and Europe, providing an ideal platform for scaling the company’s commodity trading activities. Planned initiatives include:

• Upgrading from a Flexi-desk to a dedicated physical office to enhance operational credibility.
• Establishing an in-country warehouse under bonded or non-bonded arrangements to support local distribution.
• Applying for relevant UAE food import and storage permits as required for expanded onshore activity.
• Strengthening relationships with UAE-based logistics providers and shipping lines for preferential rates.

42. Global Market Expansion Strategy

As demand for premium and non-premium rice varieties continues to grow worldwide, the company plans to expand into high-potential international markets. Target regions for expansion include:

• GCC: Saudi Arabia, Bahrain, Qatar — large, stable demand for basmati varieties.
• Africa: Kenya, Tanzania, Mozambique — emerging demand for IRRI and parboiled rice.
• Europe: UK, Germany, Italy — strong consumer preference for traditional basmati.
• North America: USA & Canada — niche but high-margin basmati market.

Expansion in these regions will be guided by structured market entry assessments, distributor onboarding, and partnerships with established retail and wholesale channels.

43. Revenue Scaling Roadmap

The company anticipates steady revenue growth based on conservative scaling of container volumes. Phase-wise projections include:

• Phase 1 (Year 1): 36 containers annually.
• Phase 2 (Year 2): 48–60 containers, supported by new markets.
• Phase 3 (Year 3): 72–90 containers through expanded product lines and distributor partnerships.

The model emphasizes sustainable, risk-controlled scaling rather than aggressive, high-risk expansion.

44. Operational Capacity Scaling

The company’s supplier, Baba Farid Rice Mills, maintains scalable processing capacity. As international demand increases, BABA FARID GLOBAL TRADING - FZCO will implement:

• Additional supplier alliances for non-basmati and specialty rice.
• Expanded QC protocols to manage higher shipment volumes.
• Increased freight contracting through multiple shipping lines.
• Digitalization of document workflows to support higher transaction volumes.

45. Technology & Systems Enhancement

Technology plays a central role in enabling scalable, compliant growth. Planned improvements include:

• Implementation of a cloud-based Trade & Compliance Management System.
• Automated document generation for invoices, packing lists, and BL instructions.
• Digital recordkeeping with structured indexing for rapid audit retrieval.
• Integration of sanctions screening tools for real-time verification.
• Deployment of an internal dashboard for trade performance analytics.

46. Long-Term Governance & Risk Maturity Plan

To ensure sustainable expansion, the company will strengthen governance maturity through:

• Annual external compliance audits.
• Continuous improvement of AML/CTF policies.
• Formalized Board-level governance structures.
• Evergreen risk assessment updates aligned with FATF and UAE Central Bank guidance.
• Succession planning and leadership development for long-term stability.

Source of Funds Declaration

BABA FARID GLOBAL TRADING - FZCO confirms that the initial capital injection and ongoing operational funds originate from:

• Personal savings of the shareholder(s)
• Previous business income / employment income
• Documented and legitimate financial sources

No funds originate from:

• Cash-intensive businesses
• High-risk jurisdictions
• Loans from unregulated entities
• Unknown third parties

Full transparency will be provided upon bank request.