Textile Industry in UAE: An Emerging Market

04Nov, 21

Textile Industry in UAE: An Emerging Market

The textile sector has become an integral part of Dubai's rich and dynamic economy, which makes it one of the best places to start a business in this sector. The United Arab Emirates (UAE) has a significant Gulf Cooperation Council (GCC) textile sector. They manufacture items such as child safety seats, curtains, luggage, and even high-end apparel for sale in the local market. On the other hand, woven items like knitwear are their best-selling textile. In this blog, we will delve into the textile industry in the UAE, explore the opportunities it offers, and guide you on how to start a textile business in Dubai. 

Textile Industry in UAE

The UAE's textile industry is a vibrant and dynamic sector with substantial growth. With a strong focus on diversification, the government has invested significantly in developing the textile and garment manufacturing sectors. Key factors contributing to the industry's success include:

  • Strategic location as a trading hub.

  • Favourable business environment and infrastructure.

  • Strong government support and initiatives.

Textile Manufacturers and Industries in UAE

Textiles have grown to such a size in the country that they now rank second only to oil in revenue and employment. Although the UAE exports to over 50 countries, it has a sizable home market. The local male consumer has become integral to the success of the high fashion business in cities such as Dubai.

Fujairah is a "Freezones," where businesses are not obligated to pay taxes or repatriation fees. This is one of the primary factors that has attracted many companies and individuals to the UAE, providing them with a broader market for their clothing and textiles. UAE's Cloth and Textile Industry encloses segments Like woven, knitted garments, fabrics, Home Textile, Readymade Cloth and Technical Textiles. Textile trade, apparel fabric manufacturing, yarn production, and a textile processing mill unit in the UAE will show significant growth and profitability. 

UAE Growth in Textile Market

Favourable economic conditions and trade dynamics have brightened the country's prospects, particularly in the garment and fashion industries. Furthermore, due to its ever-growing economy, the UAE has become an important centre for the garment and textile industries. Fibres, fabrics, apparel, materials, outerwear, home textiles, and technical textiles are all produced in this Gulf country, which has become a significant textile hub worldwide.

The textile sector in the United Arab Emirates is flourishing because of government measures like infrastructural development, tax incentives, and paper transparency. Dubai's designation as a fashion hotspot is the most recent advancement in the fashion frontier. Dubai Design and Fashion Council is being established to foster creativity and attract domestic and international businesses and designers to various fashion events. The openness of the market and the establishment of an open economy have also proven to be highly advantageous to the country. Due to its lack of profit restrictions, competitive labour prices, extremely cheap import tariffs, and low corporation taxes, the UAE is an ideal destination for textile and clothing investment. The country's good textile environment is enhanced by the availability of highly skilled and productive labour, a stable economy, and the absence of hidden expenses. Dubai, for example, is a profitable alternative because it attracts many travellers worldwide. The government also promotes expanding and developing small and medium-sized industrial businesses.

On the other hand, increased labour costs have led to automation in the textile and garment industries. The UAE manufacturers aim for and actively invest in developing technological textiles and providing novel textile goods. This will help to boost productivity, enhance product quality, and ensure that orders are delivered on time.

How to Start a Textile Business in Dubai

Dubai is the UAE's commercial centre, particularly when establishing textile businesses there. The city is a booming business hub for international businesspeople and investors. It encourages all forms of commercial activity, consolidating its commercial foundation. Especially after introducing 100% business ownership for foreign nationals, starting a firm in Dubai is now relatively straightforward. As a result, many entrepreneurs worldwide are considering starting a textile business in Dubai. 

One of Dubai's most lucrative and fast-expanding sectors is textile production. The nation's economy has significantly benefited from the contribution of this industry. In addition, Dubai's textile industry setups have given people from all over the world a ton of job chances. 

Starting a textile business in Dubai requires careful planning and execution. Here are the essential steps to get you started:

  1. Market Research: Understand the market demand, competition, and target audience. 

  2. Business Plan: Develop a comprehensive business plan outlining your goals, financial projections, and strategies. 

  3. Legal Requirements: Register your business, obtain necessary permits, and adhere to UAE's legal and regulatory framework. 

  4. Location: Choose the right place for your business, considering factors like proximity to suppliers and customers. 

  5. Supply Chain: Establish reliable sources for raw materials and suppliers. 

  6. Marketing and Promotion: Create a strong brand identity and utilize digital marketing to reach potential customers. 

Why Start a Textile Business in Dubai?

Starting a textile business in Dubai can be a smart choice for several reasons. Here are some of the main advantages of starting a textile business in the UAE:

Tax benefits 

Dubai is tax-friendly, with the UAE offering 0% income tax, personal income tax, and corporate tax. This means that entrepreneurs and investors can take advantage of the total tax exemption available in the UAE. 

Freezones

Dubai has numerous free zones with incentives like 100% foreign ownership, tax exemptions, and customs duty benefits for businesses, including those in textiles.

Diverse Customer Base

Dubai has a diverse population, including expatriates, tourists, and locals, creating a broad customer base for textiles.

Political Stability

Dubai's political stability is vital for long-term business operations and investments.

Supportive Government

The government of Dubai actively supports business growth and offers various incentives and services to entrepreneurs.

Quality Standards

Dubai maintains high-quality standards and encourages businesses to meet global quality benchmarks, enhancing the reputation of their textile products.

Access to Skilled Labor

Dubai's international appeal attracts skilled workers, making finding qualified employees for your textile business easier.

Modern Technology

Dubai embraces technology and innovation, which can help your textile business stay competitive and efficient.

Tourism

The thriving tourism industry in Dubai can boost sales for textiles, especially in areas like retail and hospitality.

Financial Services

Dubai has a well-established financial sector, making it easy to access capital and financial services for your business.

Cultural Diversity

Dubai's diverse culture can inspire creative textile designs that cater to various tastes and preferences.

Networking Opportunities

Dubai offers networking opportunities with other businesses, industry associations, and potential partners.

Starting a textile business in Dubai has significant advantages due to its strategic location, supportive government policies, and thriving business ecosystem, making it an attractive destination for entrepreneurs in the textile industry.

Documents Required to Start a Textile Business in Dubai

You must submit the following paperwork to the Dubai DED to obtain your trade license for operating a textile business there:

  • Copies of each of your partners in business and your passports

  • Copies of each of your business partners' visas. If you are a resident of the UAE, submit a copy of your residency visa, or if you are a visitor, submit a copy of your tourist visa.

  • A copy of your Emirates ID and the IDs of all of your company partners if they are UAE citizens.

  • Initial certification of approval

  • Certificate of Trade Name Registration

  • Attested MoA and evidence that business information has been approved

  • Lease documentation and Ejari, if necessary, as evidence of the factory or shop physical address

  • Permission from relevant departments for textile manufacturing and sales

Textile Manufacturing Companies in UAE

The UAE hosts many textile manufacturing companies catering to domestic and international markets. Some notable names include:

  • Al Ghurair Textiles: A leading name in the textile industry, Al Ghurair Textiles offers a wide range of products, from cotton yarn to fabrics.

  • Sharjah Textile Complex: This company produces high-quality textiles, including bed linens, curtains, and upholstery fabrics.

  • Nahar Group: Known for its commitment to sustainability, Nahar Group produces a wide range of textiles, including garments and home textiles.

Garment Manufacturing Companies in UAE

The garment manufacturing sector in the UAE is equally promising, with companies like:

  • Mafatlal Industries: A prominent name in the garment industry, Mafatlal Industries produces a diverse range of clothing for men, women, and children.

  • Gulf Textile Trading: This company specializes in uniforms and workwear, catering to various industries such as hospitality and healthcare.

  • Uniform Express: Focused on uniform manufacturing, Uniform Express offers customized solutions for businesses and institutions.

Conclusion

The textile industry in the UAE presents a wealth of opportunities for aspiring entrepreneurs. Whether interested in textiles or garment manufacturing, Dubai's strategic location, business-friendly environment, and support from organizations like Dhanguard make it an ideal place to start and grow your textile business. With careful planning and guidance, you can join this thriving industry and contribute to Dubai's economy .