Dubai weaves a textile trading dream
Dubai has gained as a hub for textile imports and re-exports in last few years while the UAE have lost its status as a garment producer, a study said.
By Agencies |
DUBAI: Dubai has gained as a hub for textile imports and re-exports in last few years while the UAE have lost its status as a garment producer, a study said.
Dubai’s imports of textiles and related materials grew at an average of 11% per year between 2002 and 2006, while re-exports registered an average growth of 13.3% during the same period, an Emirates Industrial Bank study said.
In another study last year, the bank had said that local garment manufacturers were losing their meagre market share to exporters from large production centres like China, India, Pakistan and Bangladesh.
The rising cost of doing business in the UAE was seen as taking a toll on the industry as the labour-intensive sector employs about 180 staff per establishment. Most of UAE’s garment-making units are located in Ajman. “The country’s importance as a garment producer has now almost vanished,” the study noted.
Many garment factory owners have shifted their operations to India, Egypt and Jordan since the dismantling of the textile quotas in 2005.
“The UAE had more than 100 garment factories before 2003, now there are just 10 left. It is the same situation in other Gulf countries,” it said. Dubai’s textile trade is expected to receive a boost when Dubai Textile City gets ready towards the end of 2007.
The bank study found expansion of the local textile market has been “relatively modest” in recent years compared to growth seen in other sectors.
Dubai’s imports of textiles and related materials grew at an average of 11% per year between 2002 and 2006, while re-exports registered an average growth of 13.3% during the same period, an Emirates Industrial Bank study said.
In another study last year, the bank had said that local garment manufacturers were losing their meagre market share to exporters from large production centres like China, India, Pakistan and Bangladesh.
The rising cost of doing business in the UAE was seen as taking a toll on the industry as the labour-intensive sector employs about 180 staff per establishment. Most of UAE’s garment-making units are located in Ajman. “The country’s importance as a garment producer has now almost vanished,” the study noted.
Many garment factory owners have shifted their operations to India, Egypt and Jordan since the dismantling of the textile quotas in 2005.
“The UAE had more than 100 garment factories before 2003, now there are just 10 left. It is the same situation in other Gulf countries,” it said. Dubai’s textile trade is expected to receive a boost when Dubai Textile City gets ready towards the end of 2007.
ADVERTISEMENT
Imports of both fabrics and garments are mainly from South Korea, Japan, China, India, Indonesia and Thailand. Top destinations for re-exports are Iran, Iraq, Saudi Arabia, East Africa and Russia.The bank study found expansion of the local textile market has been “relatively modest” in recent years compared to growth seen in other sectors.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
