Setting Up a Textile Manufacturing Business in Dubai

DUBAI! As you hear ‘’DUBAI’’ what comes to mind is the beautiful city with the best tourist attractions, sight seeing malls, shopping, etc. It is a never ending list. Tourists all over the world visit Dubai to have a look at the beautiful man-made structures like The Burj Khalifa, Palm Island, Burj Al Arab, Miracle garden and the list just goes on. Beyond this it is also one of the safest places in the world. It is a place that attracts millions of tourists every year, many of whom turn into residents of the city. When it comes to shopping and the fashion industry, Dubai has several malls, retails spaces and markets; where most well-known brands have a presence, Hence, Dubai is one of the hottest locations to setup a business AND one sought-after business is a textile manufacturing company. As we all know, textile industry is a booming industry in today’s generation especially in Dubai. People are all fond of varieties of clothes of different fabric, design, patterns, colour, etc.

Why Dubai to set up a textile manufacturing business?

Gap in the region

Most of the wholesalers and retailers in the region are dependent on the imported goods, which is received from different countries. Hence the need of the manufacturing setup in this location is felt; which can help a lot of companies/ shops who are indulged into wholesale and retail market to source materials from within the country. This can be a big relief for them which will also eliminate the dependency of importing and paying additional cost i.e. freight, customs, etc.

Latest Technology

A manufacturing unit, in these times, can be set-up using the latest technology moulded into the operation management, which can help not only to systemize the process; but can also help save unnecessary costs. The Dubai Government also encourages and supports the use of innovative technologies.

Demand and Tourism

As explained above, Dubai is a populated emirate in the region, having residents and tourists seeking apparel on an almost daily basis. The region attracts a lot of investment in the industry. As on 2019, the apparel industry in Dubai is valued at $12.3 billion, with a growth rate of 4.8% yearly.

Upcoming Expo 2020

The Expo 2020 is said to bring the world together, and Dubai has been selected to host it. With millions of people expected to attend the event, and many expected to stay back; it is expected to increase demand in the region for most businesses, which will positively impact the textile industry as well.

How to setup a textile manufacturing business in Dubai?

Well you can setup a textile manufacturing business in Dubai. You can choose to set-up your business in a free zone or a mainland depending on your business plan. In a mainland company , you will have to form it as a Limited Liability Company, with the category ‘Industrial license’. A freezone company can also be formed in various free zones in Dubai, which have warehousing/industrial set-up facilities. The steps for setting up a company in any jurisdiction are as below:

Name Approval

You can choose a name for your company, as per your choice and the guidelines set by the authority. This is usually the First step in the procedure.

Initial/Pre Approval

The next step is usually the initial approval, where the shareholders are named and the managers/secretary of the company are named, and are then approved by the authority.

Choose location and warehouse

The next step is usually choosing where you need to set-up your operations.

External Approvals

This business needs to take external approvals from government departments, which could include Dubai Municipality, Health and Safety Department, Ministry of Economy and/or other authorities based on the jurisdiction you set-up in.

Final Approval

Once we have received all the above approvals ans steps, we submit all the related documents to Gert a final approval from the authority and release the license. This blog is written by Ms. Prudencia, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any question regarding setting up a textile manufacturing business in Dubai or anywhere across the UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.