Dubai is known for its lavish shopping malls, and also the fact that the world’s richest individuals come to the city to shop for designer fabrics and clothes. As a response, anyone looking for a market opportunity in Dubai should suggest starting a textile business. Textiles such as woven, unwoven, and knitted garments are available in abundance in the UAE. About 150 ready-made garment factories are located in Dubai and the surrounding areas of Sharjah. The Middle East is the world’s fourth-biggest exporter of clothing and apparel goods, responsible for about 5.5 percent of global trade. Favourable economic conditions and market trends have boosted the country’s future prospects, especially in the textile and fashion industries.
Furthermore, the UAE has become a significant hub for the apparel and textile business as a result of the growth of an ever-expanding luxury apparel industry. Fibres, fabrics, clothes, cloth, outerwear, home textiles, and industrial textiles are all manufactured in this Gulf region, which has become the world’s largest textile hub.
Reasons Why You Should Open a Textile Related Business in Dubai
Dubai’s business climate is complex, and it creates a broad variety of prospects for both international and domestic entrepreneurs trying to compete in the Arabian industry. A textile-related company in Dubai may be an excellent way to make a lot of money in a highly established setting. Another big factor is that the textile industry has become so strong in the world that it now ranks second only to oil in terms of revenue and jobs.
Taking advantage of new business opportunities and sustaining an accessible economy have also proven to be significant achievements for the region. Owing to its absence of export restrictions, competitive labour costs, comparatively low import taxes, and low corporate taxes, the UAE is an ideal place to do business in the textile and fashion sectors. The amount of skilled, motivated, and seasoned staff, as well as a stable environment and a lack of additional costs, contribute to the country’s more positive textile atmosphere. Dubai, for example, is a profitable option since it receives a huge number of foreign visitors. The government is also encouraging the expansion and establishment of small and medium-sized manufacturing businesses.
Types of Activities Linked to the Textile Sector
According to recent reports, Dubai’s textile industry is well-established and includes many divisions that are currently performing well. In the textile industry in Dubai, foreign and local entrepreneurs may establish the following types of businesses:
- 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
Due to its lack of profit restrictions, favourable labour rates, relatively low import duty, and low corporate taxation, the UAE is becoming an attractive destination for clothing and apparel investment. The country’s positive textile outlook is enhanced by the availability of highly qualified and efficient labour, a healthy market, and the absence of hidden costs.
The textile industry in the United Arab Emirates is booming thanks to government policies such as infrastructure growth, tax exemptions, and paperwork accountability. Dubai has been designated as a fashion centre by 2021 and is the most recent advancement in the fashion frontier. Dubai Design and Fashion Council will be formed to accomplish this aim, which will promote innovation and draw domestic and foreign brands and designers for different fashion events. With such good backing and plans, Dubai will quickly become the next fashion city.
Registration of Textile Related Business in Dubai
The country’s garment sector is thriving, and the fashion retail demand for high-end and luxury products is at an all-time high. According to estimates, the country’s apparel industry is projected to hit $13 billion by 2021. Because of the UAE’s strong buying power and utter adoration for luxury, this might put foreign brands and investors together. 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.