The term “Fashion” refers to the acceptance of a specific trend or style by the mass population to enhance their physical beauty or personality. The demand for fashion has been continually increasing, and over time, the fashion industry has seen a tremendous spike at the international level. With the advancement of technology, the fashion industry can perform business transactions through both offline and online mode. The United Arab Emirates is one of the top business investment destinations, and the region has seen a massive opportunity in the fashion segment. Business investors who are interested in expanding their fashion business can choose Dubai as the ultimate business hub.
This blog will highlight the six reasons which every business investor in the fashion business should be aware of. Before proceeding with the reasons, let’s have a look at the fashion industry prevailing in the UAE.
Growth of the Fashion Industry in the UAE
According to the Dubai Chamber Research, the UAE’s fashion retail market has contributed a considerable sum in 2018, which amounted to $12.3 billion, with an annual growth of 4.8 per cent. The industry is expected to grow more from 2019 to 2023 and will be having a significant impact on the retail sector to a great extent. Some of the highlights of Fashion Industry are highlighted below:
- Revenue Generated: US$1,082 Million
- Expected Revenue for the period 2019-2023: US$1,190 Million
- Expected Revenue Growth at CAGR for the period 2019-2023:2.4%
- Largest Market Segment: Apparel
- Revenue is mostly generated: China (US$281,979 Million)
To know more about the fashion industry in Dubai, click here.
Why Start a Fashion Industry in Dubai?
Dubai turns out to be one of the first choices in the list of investment ground. Business owners dealing with the fashion industry can target the UAE as their ultimate business ground because of the following leverages.
Dubai is one of the top tourist destinations, which attracts a huge count of worldwide tourists, having different taste in fashion. This turns as a golden opportunity for business investors to come forward and grab the customer’s attention. According to the projection made, consumer spending in the UAE is estimated to exceed $261 billion. When it comes to apparel and footwear, an average consumer spends around 7% of the income generated.
2.Strategic Location Options
To ease the business incorporation process for the investors, the region of Dubai offers many options like Mainland, Free Zone and Offshore. Each of these locations provides different flexibilities based on nature, size of business and capital to be invested.
3.Easy Availability of Business License
Obtaining a business license is a mandate when it comes to carrying out the relevant activities. While dealing with the fashion industry, you need to hold a General Trading License to perform the related activities.
4.Simple Business Incorporation Procedures
The government has taken numerous steps to simplify the business establishment process to grab the attention of international investors. However, business professionals now prefer to outsource the incorporation part to professional experts so that they can focus on planning and strategy building.
5.Easy Availability of Visa
Investors planning to start a business in Dubai needs to hold an investor visa that defines the core reason for their existence in the nation. In case, if the business entity hires global staff, then employment visa needs to be issued accordingly.
6.Upcoming Expo 2020
The year 2020 is expected to be a game-changer for the business industries in the UAE and also at a global level. The event is expected to grab-in 25 million visitors that would lead to numerous business partnerships, and generate a revenue of over Dh. 122.6 Billion within six months. To know more about Expo 2020, click here.
The reasons mentioned above are the privileges that a business investor can grab by incorporating a fashion business in Dubai. Now, to organize one, a business investor needs to proceed ahead with documentation and legal proceedings. Any error in the process might lead to the cancellation of business license, which involves enormous risk. To carry out the process in an error-free and at a fast pace, investors prefer to take the expert’s advice.
What are the Benefits of Availing Professional Services?
Joining hands with experts is one of the profitable decisions as you can avail the following leverages:
- Tasks are handled in a professional way
- The experts can provide practical solutions to existing problems
- They stand in a position to provide the market insights
- Legal proceedings will be cleared in a smooth way
Commitbiz is one of the best business consultants in the UAE who has been giving business incorporation services since inception. Over some time, our business experts have been helping the business owners to shape their business ideas by providing customized incorporation solutions. Our business experts hold industry experience and can guide you with hassle-free business incorporation processes. In case you have any doubt, feel free to have a word with our advisors. Contact us today-we’d be glad to assist.