Dubai: Retail Boom Drives $12 billion Regional Textile

Rising consumer spending, increased tourism and rapid growth in new malls and shopping centres is driving massive growth in the Arabian Gulf clothing market.

The United Arab Emirates and Dubai in particular, is leading the way as it vies to become one of the world's fashion capitals and bids to attract 15 million tourists annually by 2010. Dubai is already the major regional hub for textile imports and re-exports. 

Regional Textile Trading Hub

Recent statistics from UK-based research company Retail International confirm Dubai's dominance with 30% of the total retail space in the Gulf Co-operation Council (GCC) region. In 2008, Dubai will also become home to five out of the world's seven largest shopping malls. 

Dubai has secured its position as the regional textile trading hub according to a recent report by the Emirates Industrial Bank.  In 2006, Dubai's textile imports were valued at $3.75 billion - an average increase of 11% over 2002. Dubai saw an even higher surge in terms of re-exports with 13.3% growth during the period from 2002 to 2006 to almost $2 billion.

Dubai Textile City

The opening last year of the six million square feet Dubai Textile City gives a further boost to the textile trade in Dubai. Fabrics are mainly imported from South Korea, Japan, China, India, Indonesia and Thailand. These products are further re-exported to countries including Iran, Iraq, Saudi Arabia, East Africa and former Soviet Union states.

Dubai Textile City is expected to become the Middle East point of reference for trade to and from Europe, China, India and even the USA and is spread over six million square feet just ten minutes from Dubai International Airport.  The zone's tax-free status will attract global players, giving the $3 billion market a boost. Setting up business there entitles owners to 100% import and export tax exemptions, no corporate taxes for first 15 years, no personal income taxes as well as additional support services such as sponsorship and housing.

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