Market Trends of GCC Textile Industry
Rising Textile and Apparels Demand in UAE
The UAE textile industry is thriving on supportive government initiatives regarding infrastructure development, tax exemptions, and transparency in paperwork. The most recent development in the fashion frontier has set Dubai as a fashion hub in 2020. The Dubai Design & Fashion Council is a governmental entity established to develop and nurture a sustainable design industry in Dubai while enabling the growth and recognition of designers based in the UAE and MENA region.
The existence of an ever-booming economy for luxury clothing has made UAE an important center for the apparel and textile businesses. The country has become a major textile hub that includes fibers, fabrics, clothes, outerwear, home textiles, and technical textiles. An increase in labor costs has led to automation in the textile and apparel industries. Development of technical textiles and providing innovative textile products are the focus areas of UAE manufacturers. This will increase productivity, improve the quality of products, and aid in delivering timely shipments of orders.
The UAE is becoming an ideal destination for investment in the textile and apparel industries due to its lack of restrictions on profit, competitive labor costs, extremely low import duty, and low corporate taxes. The availability of highly skilled and productive workers, a stable economy, and the absence of hidden costs add to the country's textile environment.
Changing Consumer Buying Patterns in GCC Countries
Technology plays a pivotal role in the lives of youthful consumers. From Facebook to Instagram, the Arab Gen Y population expects luxury brands to be online and easily available. More than 30% of the consumers in the GCC region shop online in a month primarily due to ease of access. With millennials driving the region's connectivity and mobile phone usage, the GCC is considered to have a strong foundation to adapt to the expansion of online shopping. According to a survey, since the pandemic, 89% of customers in the UAE and 91% of customers in the Middle East and North Africa became digital converts and intend to continue buying everything online.
As of 2021, the total e-commerce sales in the UAE reached just over USD 5 billion in 2021, and it is projected to cross USD 8 billion by 2025. The report found that more consumers in the UAE made online purchases across all categories during 2021 compared to 2020, with an average of 75% of respondents typically purchasing online. Similarly, in KSA, revenue in the e-commerce market is projected to reach USD 12.2 billion in 2022.
