6 Reasons to Start Your Fashion Business in Dubai

The term “Fashion” refers to the mass population's acceptance of a specific trend or style 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 modes. 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 cover six key reasons every fashion business investor should know. But before diving into those, let’s first take a look at the current state of the fashion industry in the UAE.

Growth of the Fashion Industry in the UAE

According to the Dubai Chamber Research, the UAE’s fashion retail market 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 have a significant impact on the retail sector to a great extent. Some of the highlights of the Fashion Industry are highlighted below:

• Revenue Generated: US$1,082 Million.
• Expected Revenue for the period 2019-2023: USD 1,190 Million.
• Expected Revenue Growth at CAGR for the period 2019-2023 is 2.4 percent.
• Largest Market Segment: Apparel.
• Revenue is mostly generated: China (USD 281,979 Million).

Why Start a Fashion Industry in Dubai?

Dubai ranks among the top investment destinations globally. Business owners dealing with the fashion industry can target the UAE as their ultimate business ground because of the following leverages.

1. Lucrative Market

Dubai is one of the top tourist destinations, which attracts a huge count of tourists who have different tastes in fashion. This turns into 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 per cent 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 the 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 must to legally carry out activities in Dubai. To operate in the fashion industry and conduct related activities, you will ll need a general trading license.

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 need to hold an investor visa. This visa serves as proof of their intent to establish and operate a business in the country. In case the business entity hires global staff, then an 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, 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, check out this article.

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 a business license in Dubai, 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?

Check out why availing professional services is beneficial -

• Tasks are handled in a professional manner.
• The experts can provide practical solutions to existing problems.
• They stand in a position to provide market insights.
• Legal proceedings will be cleared in a smooth way.

Commitbiz LLC is one of the best business consultants in the UAE, and it has been providing business incorporation services since its inception. Our business experts have been helping business owners shape their business ideas by providing customized incorporation solutions. We have plenty of industry experience and can guide you with hassle-free business incorporation processes. If you have any questions, feel free to reach out to our advisors. Contact us today, and we’d be glad to assist you.