How to start textile business in UAE?


The United Arab Emirates has been a successful business hub for many sectors during the last decades. Therefore, you can find many kinds of businesses that are very profitable. For example, textile businesses are among the most popular ones. However, this sector has been growing during the last year, and we’ll see why.

In this article, you will learn everything you need to know about the textile business in the UAE. Among the information that you’ll discover, you’ll be able to learn the reason why this country keeps attracting this sector. Besides, you can also learn how and where you should set up a business of this kind. Let’s observe:

What is the textile industry in the UAE?

The textile business is a huge industry that involves everything related to this sector, like manufacturing and selling textile products. For instance, it involves the growing process of natural materials, raw material creation process, making fabric, manufacturing end products, etc. Among the most common elements that this industry covers, you can find the following ones:

  • Woven.
  • Fabrics.
  • Home textile.
  • Ready-made cloth.
  • Technical textile.
  • Knitted garment.
  • Car seats.
  • Tents and curtains.
  • All types of apparel (like handbags, footwear, luggage, etc.)

In the UAE, textile businesses become more popular every day. And currently, it is the second largest industry in the country (after oil). Therefore, setting up a textile-related company can be a very profitable idea.

What is the Importance of Textile Industry in UAE

The UAE textile industry is one of the largest trading sectors in the country after the oil and gas industry. Textile businesses in the UAE are known for exporting to over 50 countries around the world. Besides, they also boast a large customer base domestically. Therefore, the textile industry has become a significant income source.

There are many other reasons why this industry is very important in the UAE. For example, one of them is that it is one of the major employment opportunities creators. This business is huge enough to affect all countries around the world. In other words, the textile industry is essential for everyone, including investors, entrepreneurs, employees, and customers.

Why Does the UAE Keep Attracting Textile Industry Business

There’s a growing demand for luxury clothing globally, which is why there are more investors establishing textile businesses. However, most of them choose to set up their businesses in the UAE Freezone due to the benefits it offers. For example, this country offers incentives and tax exemptions, allowing them to make their businesses grow.

In other words, due to the excellent reputation of the UAE, this country is now a leading apparel and textile business hub. Many of the largest textile companies and factories are now set up in several UAE free zones. Some of those free zones are Ajman Free Zone, Dubai Textile City, Fujairah Free Zone, and many others.

Benefits of Setting Up a Textile Business in the UAE?

Setting Up a Textile Business in the UAE

As we previously mentioned, the UAE has been attracting business people from all around the world. And the main reason for this is that they have the opportunity to make their businesses grow in no time. Many elements allow them to do this, including incentives, tax exemptions, easy access to the market, and many others.

If you are interested in setting up a textile business in the UAE, you must be aware of those advantages. Therefore, let’s take a look at some of the most remarkable benefits that investors like you can obtain here:

Tax exemption benefits.

Taxes can be a great disadvantage for most investors and entrepreneurs. That’s why the UAE is very attractive for many businesspeople since there are tax exemptions in most UAE locations. Income, corporate, and personal taxes are exempted for all types of industries and business sectors, including the textile industry and companies.

Besides, the government has implemented the VAT proceedings in many emirates, such as Dubai. Currently, the rate of the VAT (Value Added Tax) is 5 percent. Therefore, you can enjoy many tax benefits if you set up your textile company in a UAE location like Dubai.

Strategic location.

Finding a place where investors can find their target market is the best way to make textile businesses more profitable. Besides, it can also help them to expand their businesses in the long term. Among the most beneficial locations for this kind of business, you can set up in a Dubai free zone.

In Dubai, you will have access to other emirates and other countries, such as Qatar, Oman, Saudi, and more. Moreover, you will obtain even more benefits than in other locations. For instance, you will be able to find more potential customers and high qualified employees.

Mass population.

Since the UAE is a popular destination for millions of tourists, it serves as a benefit for textile businesses. As we mentioned before, Dubai is the most outstanding location compared to other emirates. It is home to more than 200 nationalities with different tastes, which means that there are different textile markets available.

Over time, all different textile factories and companies will increase their numbers due to this factor. Nonetheless, you need to make sure to meet all requirements and have the necessary budget to start a business in Dubai.

Full repatriation profits earned and capital invested.

Another favorable and flexible regulation is regarding the complete repatriation of profits and capital in the UAE. In many UAE locations, the authorities allow flexibility for investors to carry out their activities and processes with ease. Besides, business owners can take back the total capital that they invested along with the profits that they earned.

Simple and easy business setup process.

In other countries, the company setup process can be a bit tedious due to its requirements. Besides, the steps that must be followed can take time too. However, investors like you can complete this process without any inconvenience in the UAE. The setup process does not require much and it only takes a few business days to be completed.

The UAE Textile Industry: How to Start?

Another important thing that you need is to learn how to start a business in UAE Free Zone. The process is very simple and it requires you to follow certain steps. The process shares similar steps in all free zones. However, there might be small changes according to the location and business structure you choose. These are the general steps of a business setup process:

  • Firstly, you need to find a strategic location where investors can set up their textile businesses. Choosing the right place means entering the right market quickly and without losses. Therefore, be sure to select a location in which you can find your target market.
  • Secondly, it is important to select the most convenient business structure for this kind of business. In a free zone, you can choose between three main options. Those options are a Free Zone Limited Liability Company, a Free Zone Company, and a branch of an existing company.
  • And lastly, you must submit the required paperwork and get the necessary approvals. Once you have completed this process, you can start operating your textile company.

Which UAE Locations are Best for Textile Businesses?

Which UAE Locations are Best for Textile Businesses

The most popular emirate where investors can set up textile businesses is in Dubai. This location offers all the benefits and facilities that this type of business requires. Most of the free zones in Dubai are appropriate for a textile company. However, there is a special free zone that was specially launched for it.

Dubai Textile City (DTC), located in Al Awir Free Zone, is the ideal location for a textile company. Since 2006, this free zone has dedicated its resources to boost the textile industry in the UAE. DTC facilitates the storage of textile fabrics for long periods, and it’s favorable because it doesn’t attract customs duty.

Nonetheless, you always must take into consideration several elements before starting a business. For instance, the cost of starting a business in Dubai is among the vital elements of this process. Besides, the facilities and support services that the location offers are some factors that you must consider too.

UAE requirements for Textile businesses?

Textiles businesses need to meet certain conditions and provide some documents in order to start operating in the UAE. The investor needs to submit those documents to the pertinent government authority in the zone. For example, some of the required documents that you need to gather and provide are the following ones:

  • Copies of the passports and visas of the shareholders and owners.
  • Personal identity card of each of the shareholders.
  • The notarized Memorandum of Association (MOA) and Articles of Association (AOA).
  • Proof of trade name reservation and the initial approval of business information.
  • The paid-up capital.
  • The lease agreement stating the physical address of the office.

Nonetheless, you must take into consideration that these requirements may vary depending on the location you choose. For example, the ones that we previously mentioned are the documents that you will need in Dubai. But if you set up your textile business in any other emirate, you might need additional paperwork.

How Connectfz can help you set up a textile business?

As you may see, this kind of business is quite profitable in this country, even during these difficult times. If you are looking for setting up a textile business in the UAE, you should request our help. With our help and support services, you’ll be able to complete the business setup process in a matter of time.

Besides, we can also help you make the right choices during the entire setup process of your company. For instance, we can help you find the most convenient location for your type of business. Furthermore, you can choose between many available packages that include licenses, visas, facilities, and many other vital elements.

In addition, you are also free to request any of our other available support services. Some of the most outstanding services that you can find are visa and government services. Among other services, you can request recruitment and staff outsourcing services to hire more employees. Get in touch with us to discover more services.

Would you like to contact Connectfz to obtain more information about the business setup process of a textile company in the UAE? If you have any questions, call us on +97143316688. You can email us at, and you will talk to one of our representatives who will answer your questions.

Riju Karappurath

Avatar photoRiju KarappurathHe is an accomplished Business Development Executive with a strong background in driving revenue growth and fostering strategic partnerships. Known for his proactive approach and keen market insight, he excels in identifying new business opportunities, developing innovative strategies, and building long-lasting client relationships.

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