Garments & textiles register steady growth

09 Sep '05

4 min read

Dubai's textile and garments market is one of the largest and strongest markets in the region. In 2004, Dubai's direct exports of the products reached AED 625 million, or 13% of Dubai's direct exports, while re-exports reached AED 6 billion; leading to a total share of 10% to the total value of goods Dubai directly supplied to the rest of the world.

The steady growth of the textiles and garments sector is reflected in Graph. 1, with estimated production reaching AED 2.1 billion in 2004. Further, a 5% growth in production is further expected in 2005. First quarter employment of DCCI member companies in the sector was estimated to be 7,455 workers.

Graph. 1

Dubai textile and garments industry has been mainly dependent on imported raw materials from different destinations. Data for 1995 showed that about 91.5 per cent of the raw materials are imported and only 8.5 per cent are sourced from the local market.

Among the main destinations of textile and garments exports are U.S and EU. The UAE are currently negotiating Free Trade Agreements (FTAs) with some of its major trading partners, including the US. While this will imply scrapping of tariff on export of textiles and garments to the USA, threats to existing companies in Dubai may be expected as rules on commercial presence of foreign owned-companies in the country will likewise be relaxed or fullyliberalized.

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