Dubai is the most important trade center in the UAE. Dubai was 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 one of the major contributors to the economy of not just Dubai but the UAE at large. 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.
Dubai is the most populous city of the UAE with expatriates forming the majority 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 company 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.
Dubai is a traditional market city for over two centuries in many commodities. The Arab traders have historical links to many Asian countries with textile being 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.
The tourism sector is a primary industry driving the economy of Dubai. Tourists from all over the world visit Dubai to experience the heritage and hospitality. It is home to many modern marvels like human-made islands (Palm Jumeirah and World nations islands) and Burj Khalifa among others. It is also known for its famous Souks which are traditional market places. Dubai also organises many shopping festivals throughout the year, which has become a Shoppers’ paradise. The most popular items in the shopping basket include gold, garments, artefacts and carpets. The demand has attracted many global fashion houses to set up a business in Dubai.
Dubai Textile Village Free Zone
Dubai textile Village is a brand-new free zone dedicated to the textile sector. It is one of the more than forty free zones in Dubai. It is currently under development in the Ras Al-Khor area of Dubai. Upon completion, the textile village can accommodate 295 showrooms in a set of standard store sizes. The companies which set up business in Dubai textile free zone can also avail many free zone perks which will benefit the textile companies in boosting their business and profits.
Innovation is the mantra of success and sustainability for any business. There is a greater emphasis on adapting sustainable green practices to protect the environment for our future generations. It much applies to textile business which is currently a hydrocarbon dependent industry. The adaptation of new technologies will tackle sustainability issues such as energy and water usage. Companies with new technologies recycling of used clothes to extract resins, processing the natural dyes etc. have great opportunities to explore. The Government has encouraged the PPP models, which is a collaboration between the Government and the industry players.
The E-Commerce industry is the future of the retail sector. E-commerce platforms can create a broader market for your product. Every product can be sold via E-commerce route to the customers. Many E-commerce websites are operating in Dubai, and other Emirates of the UAE, which offer a fair and transparent flatform along with secured payments means for textile companies to sell their products without any 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.
International Apparel & Textile Fair
Dubai is hosting international Apparel and textile fair in April 2020. 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 businesses 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.
Dubai Expo 2020
The world Expo event is hosted by Dubai starting from October 2020. Dubai Expo 2020 expected to attract millions of tourists from around the world, with many millions of dollars invested in creating the necessary infrastructure. The grand event will benefit all the businesses. Many businesses are sketching new strategies to make the best use of the opportunity. All these factors can lead to realising the next phase of business growth for companies in the textile sectors.
We at Commitbiz consultants help our clients in the process of setting up a business in Dubai. Our consultants adopt the path of least resistance and full transparency in the process of business incorporation, thereby avoiding any hassles. 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.
1. How many readymade garment factories are there in Dubai?
2. 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
3. What are the expected sales of the country’s apparel sector?
4. Why investing in the textiles sector in Dubai would be profitable?
No export restrictions
Low import and corporate tax
Competitive labor cost
5. What will be the appropriate place in Dubai to open a textile business?
Dubai Textile City
JAFZA Free Zone