Business Opportunities for the Textile Industry in Dubai

by Zaara 14, Apr 2020

Business opportunities for the Textiles Sector in Dubai

Dubai is known by many nicknames like ‘city of gold’ & ‘Gulf tiger’ etc., due to the different sectors of its diversified economy, which is less dependent on crude. The textile sector is the second-largest trading sector after oil in the UAE. The UAE exports textiles to more than 90 countries in the Middle East, Africa, Asia, and Europe.  

The primary activities in the textile industry include textile trade, Yarn trade, apparel fabrics manufacturing, and textile processing units. The main products manufactured in the UAE are Garments, Car seats, tents, and curtains. 

Knitted fabric is the most popular and demanded fabric in the UAE, mostly imported from Asia countries.

Opportunities to Incorporate a Business for the Textile Industry in UAE (Dubai)

The textile sector is one of the major contributors to the economy of not just Dubai but the UAE. Let us have a look at various opportunities in this sector.

  1. Local Market

Dubai is the most populous city in the UAE, with expatriates forming most of the population. The main reason behind the significant expatriate population is the economic opportunities offered by Dubai with its many free zones, booming hospitality and tourism sector, and business-friendly policies of the Government in starting companies in Dubai, among many other factors. 

These opportunities have attracted the best talent, with many high-paying jobs to settle in Dubai. These factors have created a robust domestic market for textile businesses.  

  1. Re-export Centre

Dubai has been a traditional market city for over two centuries in many commodities. The Arab traders have historical links to many Asian countries, with textiles imported mainly from the Asian sub-continent. 

In recent years, Dubai has evolved into a major import and export destination with its robust real estate and port infrastructure. The re-export industry has also contributed significantly to the economy of Dubai, where the goods are imported from other countries.

They are repacked/rebranded as required and distributed in the Middle East and North African (MENA) region. Dishdasha/ Kandoora, traditional clothing accessible across the Middle East, is imported mostly from Asian countries like Japan, China, Vietnam, and India and distributed across the Middle Eastern countries of Oman, Saudi Arabia, Qatar, Bahrain, Yemen, Iran, and Iraq markets.

  1. Tourism

The primary industry driving the economy is the tourism business in Dubai. Tourists from around the world visit Dubai to experience its heritage and hospitality. 

It is home to many modern marvels like human-made islands (Palm Jumeirah and World nations islands) and Burj Khalifa. It is also known for its famous Souks, which are traditional marketplaces. 

Dubai also organizes many shopping festivals throughout the year, which has become a Shoppers’ paradise. The most popular items in the shopping basket include gold, garments, artifacts, and carpets. 

The demand has attracted many global fashion houses to set up a business in Dubai.

  1. Innovative technologies

Innovation is the ‘mantra’ of success and sustainability for any business. There is a greater emphasis on adopting sustainable green practices to protect the environment for future generations. 

It applies much to the textile industry, which is currently hydrocarbon-dependent. Adapting new technologies will tackle sustainability issues such as energy and water usage. 

Companies with new technologies recycling used clothes to extract resins, processing natural dyes, etc., have great opportunities to explore. The Government has encouraged the PPP model, a collaboration between the Government and the industry players.   

  1. E-Commerce

The E-Commerce industry is the future of the retail business in Dubai. E-commerce platforms can create a broader market for your product. 

Every product can be sold via an E-commerce route to the customers. Many E-commerce websites are operating in Dubai and the other UAE Emirates, offering a fair and transparent platform along with secured payment means for textile companies to sell their products without hassles. 

E-commerce companies operate in other countries in the Middle East and African countries. The E-commerce platform will help businesses to expand their customer base by accessing wider markets.

  1. International Apparel & Textile Fair (IATF)

IATF is a major world event hosted, taking into consideration the importance of the Dubai textile industry. The event provides an opportunity for companies in the textile business to interact with experts worldwide and explore synergies. 

The event also exhibits innovations in the textile business and allows companies to showcase their products. The event and its aftermath leave a lasting impact on the future of the textile industry.    

We at Commitbiz help our clients in the process of setting up a business in Dubai. Our experts also provide all the necessary market insights and assist in all the post-requirements for successful business operations.

Please contact us for answers to any queries.

FAQs

How many readymade garment factories are there in Dubai?

About 150.

What are the activities that fall under the textile sector in Dubai?

  • Manufacture of fabrics
  • Manufacture of advanced textiles
  • Manufacture of knitted and woven textiles
  • Manufacture of garments and processing units
  • Manufacture of equipment for clothing companies

What are the expected sales of the country’s apparel sector?

$13 billion.

Why investing in the textiles sector in Dubai would be profitable?

  • No export restrictions
  • Low import and corporate tax
  • Competitive labor cost

What will be the appropriate place in Dubai to open a textile business?

  • Dubai Textile City
  • JAFZA Free Zone

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