The textile industry in UAE: an emerging market due to high growth in textile and textile luxury items in Dubai. The Gulf Cooperation Council (GCC) UAE is a remarkable textile sector with items like luggage, child safety seats, curtains, and luxury apparel. Their best-selling textile is woven items such as knitwear. Dubai has played an essential role in the global textile supply chain due to its world-class logistics, modern infrastructure, and business-friendly policies.
The UAE offers a global platform where textile manufacturers, retailers, designers, and wholesalers are able to connect from all over the world. This blog provides details about the textile industry in the UAE, major textile zones, how the market works, growth potential, and investment opportunities.
Overview of Textile Industry in the UAE
The UAE’s textile industry is one of the oldest trading sectors in the region. The sector is dynamic and vibrant with excellent growth potential. Due to the government’s focus on diversification, it is investing more in the textile and garments manufacturing sectors in the UAE. The main factors for the industry’s success include:
- Strategic position as a trading hub
- Supportive infrastructure and environment
- Strong government support
Textile Industry and Manufacturers in the UAE
The textile industry is ranked second to oil in generating revenue and employment in the UAE. Although the UAE exports to more than 50 countries, it has a significant home market. Due to local customers, the fashion industry in different cities is flourishing.
The UAE offers free zones like Fujairah, where there are no taxes or repatriation charges. These key factors are attracting investors and individuals to the UAE, offering them a broader market for textiles and clothing. The market provides knitted items, woven garments, home textiles, fabrics, ready-made clothes, and Technical textiles. Hence, textile trade, textile processing units, yarn production, and apparel fabric production are promising business ideas in the UAE’s textile industry.
How to Start a Textile Company in Dubai?
Dubai is known as the business centre of the UAE, especially for new textile businesses. It attracts investors and businesspeople from all over the world, encouraging all forms of commercial activities. Moreover, with the introduction of 100% ownership for foreigners, starting a business in Dubai is easy. Hence, many entrepreneurs from around the globe are considering entering the textile industry in the UAE. It also creates a ton of jobs for people from all over the world.
Setting up a textile industry in Dubai requires careful planning, which consists of the following steps.
Market Research
Before entering the textile industry, it is essential to understand the market, competitors, and your target clients.
Business Planning
A detailed business plan helps you outline your budgets, business goals, and future strategies.
Office Location
Select an appropriate place for your business, where it is easy to access your suppliers and customers.
Legal Requirements
Register your textile company, get your trade license and other permits, and adhere to the legal framework of the UAE.
Establish a Supply Chain
Work with reliable resources for suppliers and raw materials and build a strong supply chain.
Market Your Business
Through promotions and marketing, build a strong identity and reach your potential clients.
Open a Business Account
Open a corporate bank account for your financial transactions in the UAE and abroad.
Documents Required for Setting Up a Textile Company in the UAE
You need to submit the following documents to get your trade license for legally running your textile company in the UAE.
- Copies of your and your partner’s passports.
- Copies of your business partners’ visas and a copy of your resident visa if you are a resident of the UAE. If you’re a visitor, submit a copy of your tourist visa.
- Copy of your and your partner’s Emirates ID.
- Certificate of initial approval.
- Certificate of your company’s trade name registration.
- MoA (attested)
- Ejari and lease documents, if required to show proof of physical address.
- Permission letters from the textile manufacturing department and sales.
Cost of Getting a Textile Trade License in Dubai
The cost of getting a trade license ranges between AED 21,000 and 25,000, which can increase if you add visa expenses and office rent.
Here is a breakdown of Textile business Costs in Dubai:
| Government Fee | Fee in AED |
| Trade name | 620 |
| Initial approval | 120 |
| Tasheel MoA | 345 |
| Tasheel Pre-approval | 350 |
| Trade license cost | 11,960 |
| Corporate PRO services fees | 6000 |
| Foreign trade fees | 2000 |
| Total Cost | 21,395 |
Why is the textile Industry in the UAE Promising?
The textile industry in the UAE is promising for businesses due to several reasons, some of which are:
Tax Benefits
Dubai is a tax-friendly city with 0% personal income tax, corporate tax, and VAT. The startups and investors can take advantage of the tax exemptions given in the UAE.
Free Zones
Dubai has several free zones offering benefits like 100% foreign ownership, customs duty benefits, and tax exemptions for textile businesses.
Political Stability
Dubai is politically stable, which is vital for long-term investments and business operations.
Diverse Client Base
Dubai’s population consists of tourists, foreign investors, and locals, which creates a wide range of customers for textiles.
Government Support
The government of the UAE is constantly introducing new incentives and services to support business growth in the country.
High-Quality Standards
Dubai is known for its high-quality standards, which encourage businesses to meet the quality of international standards, enhancing the reputation of the textile industry.
Modern Technology
Dubai adopts modern technology and innovation, making it easy for textile businesses to stay efficient and competitive.
Skilled Workers
Dubai is a global attraction for skilled workers, which makes it easy to find workers for your textile business.
Tourism
Tourism also plays a vital role in boosting sales for the textile industry, especially in areas like hospitality and retail.
Networking Opportunities
Dubai is a hub for business, which means more networking opportunities with potential partners, companies, and trade associations.
Financial Services
Dubai offers a stable financial sector, allowing businesses to access financial services and capital when needed.
Cultural Diversity
The diverse culture of Dubai inspires creative textile designs for various cultural preferences and tastes.
The textile industry of the UAE is ideal and promising for entrepreneurs due to its strategic position, government support, and a flourishing business sector.
Top Textile Zone in the UAE
The textile market of the UAE is diverse, with different zones specific to other types of textile trade. The top traditional textile trading market is located near Dubai Creek, known for fabric shops and wholesale markets. They offer cotton, linen, lace, silk, wool, and other embroidered materials.
Dubai Textile City, a designated free zone for textiles which is located in Al Warsan, offers warehouses, business offices, and import/export facilities.
Jebel Ali Free Zone and Dubai Airport Free Zone are attracting international fashion brands, large-scale importers, and manufacturers.
Bur Dubai is known for its garment wholesalers, tailoring services, uniform suppliers, and more.
Deira is home to large textile stores with fabrics for both wholesale and retail.
Sharjah also offers a strong textile industry with affordable warehouses and factory spaces, both for small and medium-sized textile firms. Abu Dhabi is also growing in textile and fashion with luxury brands and high-end retail.
Top Textile Manufacturing Companies in the UAE
The UAE is home to many textile manufacturing companies, supplying material to both local and international markets. The top names include:
- Sharjah Textile Complex. The company produces high-quality textiles such as bed linens, curtains, and other hanging fabrics.
- Al Ghurair Textiles. A big name in the industry offering a wide range of products, which include cotton yarn, fabrics, and more.
- Nahar Group. The company is known for its sustainability, producing various types of textiles from garments to home textiles.
Garments Manufacturing Sector in the UAE
The garments manufacturing industry is promising, with notable names like:
- Mafatlal Industries. A promising name in the garments sector, Mafatlal is producing a wide range of clothing and fabrics for men, women, and children.
- Gulf Textile Trading. The company produces uniforms, work uniforms for industries like healthcare and hospitality.
- Uniform Express. Specializes in customized uniforms for institutions and businesses.
Demand Trends in the Textile Industry of the UAE
There is a massive influence of cultural factors, new customer trends, and market demand on the textile industry of the UAE. Dubai is a hub for modest fashion, and there is a high demand for abaya fabrics, scarves, kaftans, and luxury modest clothing. Dubai’s fashion industry also includes international clothing brands producing casual wear, western wear, formal wear, and sportswear.
The UAE requires a large number of uniforms for schools, hospitality, healthcare, aviation, corporate sectors, and security services.
Additionally, weddings, festivals, luxury parties, and other cultural events demand high-end clothing. Dubai also offers tailoring services with high-quality fabrics for residents and tourists.
E-commerce is also playing an essential role in boosting online textile purchasing and demand for textile distribution firms. With the help of both online and offline services, you can make your textile business successful in the UAE.
Challenges of Textile Companies in the UAE
Although the textile industry is a promising sector, it also faces some challenges, such as:
- Increasing Competition
- High rental costs
- Fluctuating demand in luxury items
- Compliance with import laws
- Increasing pressure for sustainability
With the proper guidance from a trusting company like Al Riyady, you can overcome these challenges and make your business successful.
How Al Riyady Corporate Services Can Help?
Al Riyady is your guide to setting up a textile company in the UAE with ease. With years of experience in UAE business setup, PRO services, licensing, and documentation, our team ensures a fast and smooth process. We can help you with the UAE Golden Visa process, open a Bank Account, obtain visas, and understand the regulations of the textile industry in the UAE, and ensure you stay compliant. Our services include:
- Golden Visa UAE
- Business Setup in the UAE mainland and the UAE freezone
- PRO Services Dubai
- Bookkeeping
- Digital Marketing
- Cost Calculator
- Commercial Spaces
- Bank account in Dubai
Final Words
The textile industry in the UAE: an emerging market offering huge potential and a promising future. Whether you want to deal in trade, manufacture, or retail and export, it provides various opportunities. Because of Dubai’s position as a business hub, supportive incentives, policies, and global connectivity, it is an ideal destination to set up a textile business. With Al Riyady, you can set up your business smoothly and access international markets to make your business successful.
