How to Establish a Clothing Business in Dubai?

by Zaara 05, May 2020

Dubai is open to setting up any business activity due to its pro-business environment and active involvement of government authorities in making this Emirate a business hub. One such business activity is the clothing or garment business. 

Dubai is known to be a hot spot in fashion and hosts many shopping festivals around the year. Hence, starting a clothing business in Dubai or investing in the retail market can be great.

Garment Business in Dubai

The garment business in UAE is valued at $15 billion and growing every day. And this accounts for the largest share of the Emirate’s retail industry. Apparel leads the category with a 73 percent market share. Demand within this segment was supported by value offerings by retailers, particularly during shopping festivals and sales events.

The garment business in Dubai is an excellent opportunity for entrepreneurs who can offer many clothing services. If you think you’ve got the very thing to fill this gap in the market, here’s all you need to know about starting a clothing brand in the UAE.

Benefits of Setting up a Garment Company in Dubai

Starting a Garment company in Dubai comes with a lot of benefits and they are

  • Low or no taxes
  • No minimum capital requirement
  • No restrictions on trading locations
  • Dubai is the fastest-growing economy
  • First-class infrastructure
  • Work along with government bodies
  • No currency restrictions
  • Low import duty
  • More options for business activities
  • No limitations to the number of visas

Requirements to Open a Clothing Business in Dubai

We all know a business setup in Dubai demands certain things and here are a few things you must know before setting up a garment company in Dubai.

  • Once you have decided on your business plan to set up your fashion store in Dubai, and obtain support from the national UAE local partner, the UAE national owns not less than 51% of the share in the company.
  • Apply to the Department of Economic Development (DED) to obtain incorporation and licensing. 
  • Find the right location to rent your shop. And also get permission from the necessary authorities.
  • There are certifications, visas, permissions, and PRO services needed from various entities needed to open a fashion business in Dubai.

How To Start Clothing Business in Dubai? 

Is the question of how to start clothing business in Dubai running in your mind? Before moving forward, decide where to set up business in Dubai – Mainland or Freezone. Then comes the registration of the company. You will need a general trading license to operate a clothing business in Dubai. The steps are as follows –

Name and Activity

Pick a name for your company which is following the regulations laid out by the local government. Narrow down the business activities you wish to carry out.

Submit the Documents

The next step involves submitting necessary documents to the Dubai Department of Economic Development (DED), which includes

  • Passport copies and IDs of shareholders and directors
  • Files and attested online application form 
  • Proof of residential address Business plan 
  • Lease Agreement
  • A letter from the DED that gives you an initial approval
  • Ejari Verified the tenancy contract

Arrange Office Space

Getting an office space entirely depends on the brand's operational preferences, jurisdictions and budget. This step is compulsory if you are setting up a fashion store in Dubai mainland. The free zones do not have the compulsion to have an office space. But since it’s a clothing business, you may need a shop, and in the case of a wholesale garment business, you need a warehouse.

How To Start an Online Clothing Business in Dubai?

Starting a clothing store is a great way to debut a legitimate business in Dubai. Selecting a business license depends on the availability of capital and a specific legal structure. 

A trade license will allow the business to operate legally in the region with access to government facilities and other incentives. 

Getting a permit is the first step to starting an online clothing business in Dubai. Dubai offers a variety of e-Commerce licenses in different jurisdictions, from the mainland to the free zone. 

We at Commitbiz can assist you with your clothing business in Dubai. Get in touch with us today for more information.


In which regions can a garment company in Dubai be incorporated?

A garment company can be started in the mainland, free zones, or the offshore region in the city.

Do we get 100% ownership of a garment business in Dubai?

Yes, you do get 100% ownership of your clothing company in the Emirate.

Which license is required for clothing manufacturers in Dubai?

An e-commerce license must be obtained for starting a cloth-producing company in the city.

Which free zone is preferable for the Dubai fashion industry?

The Dubai Design District free zone is preferred for the fashion industry.

What is the purpose of the Dubai Design and Fashion Council?

The Dubai Design and Fashion Council aims to create mentorships, scholarships, and partnerships for local designers to use as they sculpt their futures to develop domestic talent and encourage start-ups.