Complete Overview of Textile Business in the UAE

Jul 22, 2024 | Business Setup

The UAE’s textile business has progressed a lot as seen in recent years. Before this, the oil business had always been at the top, though it still is, but the textile business is ramping up too and has now become a global textile business. The market value of the textile business in the UAE is US$10 billion and is expected to grow by 5% each year.

The UAE has become a global textile business and is the world’s leading exporter of textiles and garments. UAE exported $5.92B in textiles by 2022.

Whether you are a business owner or an entrepreneur who wants to do business setup in Dubai and the other parts of the UAE, then this blog is a complete non-stop guide for you.

Textile Business in the UAE

The textile business in the UAE has seen a steep rise. The business earlier used natural fibers for its manufacturing but with advancements in technology, it started using synthetic textiles. The technology has improved efficiency. However, even with the advent of technology the Textile business of UAE has always prioritized sustainability over the business.

Most of the manufacturing products in terms of textiles come from Abu Dhabi, Dubai, and Sharjah. Even the other 4 manufacturing hubs or emirates are slowly building up as garment and textile manufacturers.

In UAE, the textile business is the second largest business after oil. There is a huge employment opportunity in this field. 

Prominent Garment and Textile Manufacturing Companies

There are many famous companies in Dubai or UAE in the field of garments or textiles. But, we would take 2 for each, garment manufacturing companies in Dubai and textile manufacturing companies in the UAE respectively.

Garment Manufacturing Companies in Dubai

Dubai is one of the key emirates of the UAE and hosts several prominent garment manufacturing companies. By the way, an important point to note here is, that Dubai is the most favorable place to set up a business in the UAE. These companies have excellent infrastructure and a business-friendly environment which in turn allows them to produce high-quality garments for both local and international markets.

  1. Al Areen International Group

AI Areen International Group is a reputed company that is very well known for its wide range of textile products. This company is a significant player in Dubai’s textile business. The company is specialized in the production of various garments and has a strong export market.

  1. Royal Fashion

Royal Fashion is highly honored for its custom tailoring and ready-made garment manufacturing. The company combines traditional tailoring techniques with modern manufacturing processes to deliver high-quality products.

Textile Manufacturing Companies in the UAE

The UAE is home to many textile manufacturing companies and these companies serve diverse markets. The companies found here in UAE are well known for their innovation, quality, and adherence to international standards.

  1. Classic Fashion Apparel Industry

Classic Fashion Apparel Industry is one of the largest textile manufacturers in the UAE. This company operates out of the Ajman Free Zone. The company produces a wide range of garments for international brands and retailers. 

  1. Paramount Textiles

Paramount Textiles is based in Sharjah and is a leading manufacturer of woven and knitted fabrics. The company has a strong reputation in the market due to its state-of-the-art manufacturing facilities and commitment to quality.

Key Drivers of Growth in Textile Business in the UAE

The factors which have contributed to the growth of the textile business in the UAE are:

  1. Strategic Location

The UAE is a global trade hub and is easily able to attract Europe, Asia, and Africa for trade, as these countries are within convenient reach. 

  1. Infrastructure

The state-of-the-art infrastructure, which includes ports, logistics facilities, and free zones, helps the UAE textile business to operate efficiently.

  1. Business-Friendly Policies

The UAE government offers a lot of incentives, including tax exemptions and streamlined business processes. The government does this particularly to attract textile businesses.

  1. Innovation and Technology

Adopting advanced manufacturing technologies and a strong emphasis on innovation have boosted both productivity and quality respectively in the textile business. The innovation and technology are so good that they have led to high-end fashion products for the population.

Challenges and Opportunities in Textile Business in the UAE

The challenges that the UAE faces are quite few but does exist. One of them is high operational costs and the other is stiff competition from international markets. And also dependence on imported raw materials becomes a problem sometimes. 

Despite some of the challenges mentioned, the business does have huge significant opportunities to support it. As already discussed the UAE’s strategic geographic location and strong trade connectivity provide a gateway to global markets. You will find government support and investment to create a favorable business environment.

Those countries who want to invest in the textile business in the UAE will find the majority of employees willing to work within this domain due to major opportunities. Thus the companies will not have to depend on foreign recruitment.

We have discussed well enough how the UAE’s textile business is. We started by talking about the textile business in the UAE i.e., what’s it current status is. Then we moved on to talk about how Dubai is a prominent leader in terms of textile business in UAE. We also talked about the factors involved in keeping up textile business in UAE on its edge.

Finally, challenges and opportunities were discussed to showcase how other countries or foreign companies can invest in the business of textile in the UAE.
If you are interested in setting up a textile business in the UAE, you can avail our free consultation and have your business up and running in just 7 days.

FAQs on Textile Business in the UAE

What opportunities exist for new businesses in the UAE’s textile sector?

Opportunities include leveraging the UAE’s strategic location for global trade, benefiting from government incentives, and tapping into a diverse and fashion-conscious population.

How does the UAE’s strategic location benefit the textile business?

The UAE’s location as a global trade hub provides easy access to markets in Europe, Asia, and Africa, facilitating efficient trade and business operations.

What kind of government support is available for textile businesses in the UAE?

The UAE government offers various incentives, including tax exemptions, streamlined business processes, and investment in infrastructure to create a favorable business environment.

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