Dubai is famous for its glamorous shopping malls as well as the fact that the wealthiest individuals from all around the world visit the city for these shopping centers for buying luxury textile and clothing articles. Therefore, those searching for a business opportunity should consider starting a textile business in Dubai. The UAE contains a wide range of textiles such as woven, unwoven, and knitted garments. Approximately 150 ready-made apparel manufacturers are primarily based in Dubai and near Sharjah. The Middle East is the fourth largest exporter of apparel and clothing products, accounting for close to 5.5% of world trade. Favorable economic environments and market dynamics have uplifted the future of the country, particularly in clothing and fashion.
Furthermore, the emergence of an ever-expanding luxury clothing industry has made the UAE a significant center for the garment and textile sector. This gulf country has become the world’s largest textile center, including fibers, fabrics, garments, cloth, outerwear, home textiles, and industrial textiles.
Reasons Why You Should Open a Textile Related Business in Dubai
Business in Dubai is extremely varied, and it offers a wide range of opportunities for domestic and foreign entrepreneurs looking to thrive in the Arabian market. A business in the textile sector in Dubai may represent the proper idea for generating large profits in an extremely developed environment. Another major reason is that this industry has become so large in the country that textiles are only behind oil for income and employment.
Entering new market opportunities and having an open economy has also proved to be a significant step forward for the country. UAE is the perfect place to do business in the clothing and apparel industries due to its lack of export limitations, favorable labor rates, relatively low import taxes, and low corporate taxes. The number of qualified motivated and experienced workers, a healthy economy, and a lack of extra costs lead to a more positive textile climate of the country. Places like Dubai also make the country a lucrative choice because it draws a lot of international tourists. The Government is also promoting the growth and creation of small and medium-sized manufacturing enterprises.
Types of Activities Linked to the Textile Sector
According to recent research, the textile sector in Dubai is well established and comprises several divisions that are performing very well at the moment. Foreign and local entrepreneurs may set up the following types of companies in the textile industry in Dubai:
- Manufacture of knitted and woven textiles
- Manufacture of fabrics
- Manufacture of advanced textiles
- Manufacture of equipment for clothing companies
- Textile processing plants
- Garment manufacturing and processing units
Textiles; The Emerging Industry in Dubai, UAE
UAE is becoming an ideal destination for investment in the textile and apparel industries, due to its lack of restriction on profit, competitive labor costs, extremely low import duty, and low corporate taxes. The availability of highly skilled and productive workers, a stable economy, and the absence of hidden costs add to the country’s positive textile environment.
The textile industry in the UAE is thriving on supportive government initiatives in terms of infrastructure development, tax exemptions, and transparency in paperwork. The most recent development in the fashion frontier has been of setting Dubai as a “fashion hub” by 2021. To achieve this goal, Dubai Design and Fashion Council is being established, which will encourage creativity and attract domestic and international brands and designers for various fashion events. With such backing and strong plans, Dubai will soon emerge to be the new fashion capital.
Registration of Textile Related Business in Dubai
The fashion retail market for high end and luxury goods has been at an all-time high and the textile industry is flourishing in the country. The textile market in the country is anticipated to achieve $13 billion by 2021 according to reports. This could bring international brands and investors together because of the high purchasing power of the people of the UAE and their absolute adoration for luxury.
An investor can open a company for the manufacturing or selling of textile articles in Dubai or one of the free zones in the emirate. For assistance in registering a business in the textiles sector, please contact our business set up experts at Riz and Mona Consultancy.