Business and investment opportunities for the Textiles Sector in Dubai

September 15, 2023

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Dubai is, without any doubt, the most prominent trade hub of the UAE and the Middle Eastern region. Dubai was dubbed with many nicknames, the most obvious of them being ‘ the city of gold’ and ‘Gulf tiger’ because the investments that are invested in the city turn into “gold.” The UAE is the only country in the region that has successfully developed its different sectors and diversified its economy that is now less dependent on crude. Out of all these sectors, the textile sector is one of the prime contributors to the UAE’s economy. The textile sector of the UAE is the most significant revenue-generating sector coming in second only after the hugely profitable oil industry of the UAE. The UAE now is a significant exporter of textiles, and it exports its textiles– yards of fabrics as well as apparel– to more than 90 countries all across the Middle East, Africa, Asia, and some parts of Europe.

The primary business activities that anyone wishing to set up a business in the textile industry can do are textile trade, yarn trade, apparel fabrics, and ready-made garments production and manufacture of textile processing units. The chief items that are manufactured by the textile sector in the UAE are ready-to-wear garments, car seats, bed sheets, napkins, tents, and curtains, etc. Knitted fabric is the most popular and in-demand fabric that is mostly used by the residents of the UAE. It is typically imported from Asian countries south-Asian countries to be exact.

Local Marketplace

Dubai is the most densely populated city of the UAE, with immigrants and ex-pats forming the major portion of the city’s population. The most significant reason behind the abundance of expatriate population settling in this emirate out of all the others is the numerous business and investment opportunities to the foreign investors that are offered by Dubai. These offers are proffered to any entrepreneur who wishes to setup a business in Dubai freezone or within its many mainland. Besides that, the city has prosperous hospitality, travel and tourism sector, and exceptional business-friendly policies set out by the Government to aid the business owners in their endeavor of starting a company in Dubai. These opportunities have successfully enticed the best talent in the world with the promise of high paying jobs to settle in Dubai. These factors have helped in creating a strong domestic market for textile businesses.

Re-export Centre

Dubai has always been a trading city since the dawn of time. For more than two centuries, Dubai has earned its keep by selling many commodities to all parts of the world. The Arab traders have historically traded with many Asian countries, especially the textiles that are used in the UAE are imported primarily from the Asian sub-continent. In recent times, Dubai has successfully evolved into a prime import and export destination because of its dependable real estate and well-constructed port infrastructure.

Along with the textile industry of Dubai, its re-export industry has also made a significant contribution to uplift the economy of Dubai, even if the major portion of the goods that are utilized in this sector are imported from other countries. They are repacked or are rebranded if the need arises and distributes to the various parts of the Middle East and North African (MENA). Dishdasha— the traditional clothing of the UAE is imported mostly from Asian countries like Japan, China, Philippines, Vietnam, and India. It is distributed across the Middle Eastern countries of Oman, Saudi Arabia, Qatar, Bahrain, Yemen, Iran, and Iraq markets.


The tourism sector, as said earlier, is one of the most profitable industries that are single-handedly driving the economy of Dubai and are sustaining its economic fortune. Tourists from all the corners of the world flock towards the shores of Dubai to experience the fantastic heritage and unrivaled hospitality. It is the only city in the world that is home to many human-made marvels like Palm Jumeirah and World nations islands and the tallest building of the world the Burj Khalifa, among others. It is also well-renowned for its famous Souks —the traditional marketplaces. Dubai is also called the “shoppers’ paradise” and is rightfully so as it has over a hundred shopping malls that offer duty-free imported products.

Moreover, it also organizes the much-anticipated shopping festivals throughout the year that has become the talk of the town. The most popular items sold during this shopping festival include gold, designer shoes and bags, artifacts, and garments. This rising demand has attracted many global fashion houses to set up a business in Dubai.

Dubai Textile Village Free Zone

Dubai textile Village is a new free zone that is devoted to the textile sector exclusively. It is one of the forty free zones operating in Dubai. It is currently under expansion and development in the Ras Al-Khor district of Dubai. Upon its completion, the textile village free zone will be able to accommodate up to 295 showrooms the size of the standard stores. The corporations that set up businesses in Dubai textile free zones can also benefit from many free zone perks, which will give profits to the existing textile companies; thus, boosting their businesses further.

Innovative technologies

Pursuing innovation and sticking to innovation is the mantra of success and sustainability for any business operating in any sector. Nowadays, there is a greater emphasis on adopting sustainable green practices to protect the environment so that our future generations can breathe in a safe and healthy atmosphere. And these trends in technologies are also rapidly adopted by the textile business, which is, at the moment, dependent mainly on the hydrocarbon industry. The adaptation of new innovative technologies will tackle sustainability issues such as the consumption of energy and water in large quantities. Companies that use these new technologies often recycle used clothes to extract resins and are used for processing the natural dyes etc. have great business opportunities to explore. The Government of the UAE is encouraging the usage of PPP models by promoting collaboration between the Government and the leading industry players.


The E-Commerce industry is rapidly shaping to become the future of the retail sector. This is simply because the E-commerce platforms provide the means to any enterprise in the world to create a broader market for their product. Every product imaginable can be procured through an E-commerce route to the consumers. Many E-commerce websites are currently operating in Dubai and across the greater UAE, which offers a reliable and trustworthy platform for all that lets them make secured payments means for the textile companies to sell their products without any lengthy process and unnecessary hassle. By utilizing the E-commerce platforms, the businesses operating in Dubai can expand their customer base by accessing global markets.

International Apparel & Textile Fair

Dubai is set to host the international Apparel and textile fair in the April of 2020. IATF is an eminent world event that is set to strike the textile industry by providing endless investment and business opportunities for foreign investors in Dubai. This event highlights the importance of the Dubai textile industry in the landscape of the business world. Furthermore, this event is going to provide an opportunity for companies – both big and small– in the textile sector to interact with experts that are coming from all corners of the globe and explore synergies. The event is also set to unveil innovations in the textile business and will allow the companies to exhibit their products. The exhibition and its aftermath are going to leave a lasting impact on the future of the textile sector.

Dubai Expo 2020

The world Expo is the most anticipated event of the year, which is hosted by Dubai. It is set to start from October 2020. The Dubai Expo 2020 is expected to attract millions of visitors that are coming from around the world, from forty-five confirmed participants. This grand event will benefit all businesses. Many businesses are formulating new strategies to make the best use of this fantastic opportunity. All these factors will culminate to realize the next phase of business growth for companies in the textile sectors of Dubai.

Need any Help?

We at KWS Middle East are the business setup consultants that go to all lengths to help our clients during the process of setting up a business in Dubai. Our consultants are specialists in their fields and will always adopt the path of least hassle in the process of business incorporation, thus avoiding any untoward delays. Our people also provide all the necessary market insights required to get ahead in Dubai and assist you in all the post-requirements to ensure successful business operations continue.

Contact us today and book your commitment-free call with us today!.

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