In the last two decades, Dubai has transformed into a burgeoning business hub from a mere city of pearl trade. Though it saw a growing market after discovering the oil and gas industry of late. It was only after globalisation that it saw a significant influx of businesses and investors, making it a beloved business city for international investors. It was a connecting point between the Eastern and Western worlds from early times. But, recently it has become a significant investment centre for the global business community. Small, medium-sized and big corporations are choosing Dubai for it is amongst the top trade zones globally. Dubai also offers a conducive environment for every investor for business.

Status of Manufacturing Sector in Dubai

Manufacturing is the second-largest economic sector in the United Arab Emirates after the oil and gas industry. The textiles manufacturing industry plays a crucial role in the economies of Dubai, Abu Dhabi and other emirates. The textile manufacturing industry holds close to 10% of the country’s Gross Domestic Products.

Dubai’s fashion industry is considered amongst the best, thanks to its flourishing textile and garment sector. There are many options for foreign and local investors interested in setting up a textile manufacturing industry in Dubai. Many textile companies have made Dubai their home. We see countless reasons for those seeking to start a business in the sector to be happy. You can hire a professional business setup consultant for a hassle-free registration, licensing and office setup process in Dubai.

Types of Activities in the Textiles Manufacturing Sector in Dubai

According to several reports, the textile and apparel industry in Dubai is expanding at a fast speed and is expected to grow by many more times. It has several branches which are established well. Following types of activities can be selected by the investors in the textile industry in Dubai:

  • knitted and woven textiles manufacturing;
  • Fabrics manufacturing;
  • technical textiles manufacturing;
  • the manufacturing of equipment of textile companies;
  • Manufacturing mills.
  • Distributor
  • Textile supplier

Dubai companies can also engage in the import-export activities of textiles and related products. It is a luxury segment in Dubai as it is amongst the most profitable sectors. Yarn businesses are also performing well in Dubai.

Textile Industry in the UAE

The UAE government is constantly trying to boost the non-oil sector to create new revenue-making opportunities for the economy. Free zones introduced by the government is one such factor that drives businesses to set up a company in the UAE. DTC(Dubai Textile City) is one such free zones that are dedicated to the textile industry.

Dubai Textile City

Dubai Textile City was established as a Joint Venture between TEXMAS, Dubai Port & Customs Authority. Situated at the Al Awir Free Zone, the city is the choicest destination for the textile and garment sector manufacturers and traders. You, as an investor, can carry out your business activities here without paying the customs duty, usually imposed at the rate of 5%. The business activities allowed in Dubai Textile City (DTC) are – Textile, Fashion and Trading.

Following are the benefits of starting a business in Dubai Textile City (DTC):

  • Exemption from custom duty
  • Flexibility to sublease the premise
  • Free transfer of goods
  • Extensive lease period with affordable rent

Documents Required to Start a Textile Business in Dubai

You must carry the following documents to present to the authorities to start your textile business in the UAE:

  • Owners/Shareholders passport and visa copies
  • Personal identity card of each shareholder
  • Proof of trade name reservation
  • Proof of initial approval of business information
  • Notarised MOA and AOA
  • Lease agreement stating the physical address of the office
  • Paid-up capital

How to Start a Textile Business in Dubai?

To start your textile business, you will have to follow these steps:

Select the Right Location

You need to first find the right location to perform your business efficiently. The location of your business plays a crucial role in the failure and success of your business. Select a site that would help you to grab the market effectively. Ensure your partners and business associates find it convenient to enter your business premises. If your business cannot meet the requirement of your target market due to the wrong location, it will be a massive loss for you.

Choose the Apt Business Structure

Selecting a fixed structure is another essential factor to form the complete legal framework of your business. In Dubai Textile City, an investor can choose from the following formats:

  • Free Zone Limited Liability Company (FZ-LLC)
  • Free Zone Company (FZCO)
  • Branch of a Foreign or UAE Company

Submit the Necessary Documents

After you have finalised your business structure, you need to submit the necessary documents to the Government Authority to complete the assessment process.

Get the Mandatory Approvals

Once the assessment and verification are complete, the authority will issue all the necessary licenses and permits required for business setup in Dubai and you can run your business smoothly.

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