Why UAE continues to attract textile businesses


Why UAE continues to attract textile businesses

The UAE is home to a large textile industry, which today serves as a significant income source and one of the major creators of employment opportunities. Although the country’s textile industry exports to over 50 countries, it also boasts a large customer base domestically. The sector’s growth over the years can be attributed to supportive government initiatives, mostly in terms of infrastructure development.


The growing demand for luxury clothing has further added to the UAE’s importance as a leading apparel and textile business hub. Staying true to this reputation, the country today is known for its diversity of fabrics, apparels, outerwear, home textiles, and technical textiles. Furthermore, among the GCC countries in particular, the UAE is successfully attracting textile businesses from other countries, who are increasingly choosing Ajman as the base of their operations in the country. Today, Ajman Free Zone serves as a strategic base for more than 320 textile-based companies, enabling them to seamlessly conduct their import and export businesses with the rest of the world in the most cost-effective manner.


For instance, textile manufacturer Al Tilal, which operates out of the Free Zone, swears by the integrated digital services offered by Ajman Free Zone that have helped the company save a lot of time and effort in operations. Al Tilal attributes its smooth operations during the pandemic times to the Free Zone’s incentivization of the establishment, apart from providing financial support and necessary guidance.


Ajman Free Zone’s efforts to support the industry during the COVID-19 crisis have not only ensured the continuity of textile businesses but also helped them make the most of the Free Zone’s unique features and facilities to drive growth. Businesses such as Al Tilal also benefits from the location of Ajman Free Zone within the country, as it supports the easy distribution of their products across other emirates.


As apparel consumer trends, supply availability and e-commerce become highly popular in Arab countries, the UAE has successfully established itself as an ideal destination for investments in the textile and apparel industries. The absence of restrictions on profit, competitive labor costs, extremely low import duty, and low corporate taxes further enhance the attractiveness of the UAE markets before textile businesses. Availability of high skilled and productive workers, stable economy, and absence of hidden costs are also factors that attract the sector’s businesses to the country.


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