Retail boom drives $12bn regional textile industry

AMEinfo

Rising consumer spending, increased tourism and rapid growth in new malls and shopping centres is driving massive growth in the Arabian Gulf clothing market, say the organisers of the region's biggest garments and fashion accessories event

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.

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.

Motexha, an interactive platform for industry professionals which this year takes place at the Dubai International Exhibition Centre from 31 March to 2 April 2008, continues to drive the region's textiles industry, estimated to be worth over $12bn

'The world's fashion and textile industry cannot ignore the stellar growth taking place in the Middle East market with the UAE the biggest textile fashion market in the GCC,' said Jim Meltz, Show Manager for Motexha at IIR Middle East.

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 $3.75bn - 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 $2bn.

'The opening last year of the six million square feet Dubai Textile City gives a further boost to the textile trade in Dubai,' Meltz added. '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 $3bn 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.

'The excellent contribution of the emirate's entrepreneurial free zones is an important part of Dubai's phenomenal growth rate,' Meltz said. 'Textiles are regarded as Dubai's second biggest re-export commodity and Motexha continues to support industry growth.'

More than 250 exhibitors from over 25 countries are expected to participate in Motexha 2008 a 12% increase over 2007 with ladies' wear and fashion accessories continuing to dominate the industry mix. The show also features PURE - a dedicated arena for international brands and franchise labels, showcasing mid to high-end brands and new designers.

Motexha has received wide international industry support including from the Apparel Export Promotion Council of India and the Taiwan Textile Federation. Turkey will be among 10 country pavilions participating at Motexha with government supported participation.