How to Start a Textile Business in UAE? A Comprehensive Guide

textile industry in uae

The UAE has become a popular business hub for international entrepreneurs, investors and professionals. The business-friendly environment attracts investors from all over the world to start businesses in various profitable sectors. If you want to enter the textile industry in UAE this is the right place.

In this article, we will teach you what is textile industry and how to start a textile business in Dubai and much more. As an entrepreneur interested or experienced in the textile industry, you can set up a textile business in Dubai. But first you need to know how much it costs to start a textile industry in Dubai. will help you learn how to start a textile business in Dubai and all the necessary documentation.

Textile Industry in UAE, An overview

textile industry in uae

Due to the status of Dubai as a major commercial hub in the region, last year’s data also showed strong growth in the textile industry in UAE and luxury sectors. It makes sense for foreign investors to establish textile companies there.

As well, Dubai is the gateway to the Middle East and a lucrative international market, which makes the process of establishing a company in the emirate ideal for textile industry in UAE. Foreign investors can establish a company in Dubai and enjoy maximum benefits, including 100% ownership.

Why Start a Textile Business in UAE?

Setting up a textile industry in UAE has several advantages. The textile business in Dubai, being one of the most successful business sectors, can be life-changing for many aspiring entrepreneurs. Here are the main benefits of starting a textile business in the UAE:

  • Target different target groups and markets: Dubai is home to many expats and is one of the most popular tourist destinations. Also, entrepreneurs in Dubai can meet the needs of target groups with different preferences.
  • Tax benefits: When it comes to paying taxes, the UAE offers full tax exemption, which is a great advantage for entrepreneurs and investors. Also, the UAE is one of the most tax-friendly countries in the world, with 0% income, personal and corporate taxes. Therefore, if you plan to start a textile business in Dubai, you can enjoy these tax benefits.
  • Repatriation of profits and capital: Many entrepreneurs are concerned about the additional capital they will have to pay when forming or liquidating a company. So, you do not have to worry when doing business in Dubai. The city allows companies to recover all income and capital invested.
  • Easy business start-up process: The Dubai government is very supportive of business start-ups. It offers a variety of opportunities for business people, making it easy and fun to do business in the city. So, the government has taken several steps to ease the process of starting a business in Dubai. This will increase domestic business opportunities and ultimately strengthen the economy.
  • Excellent location: As far as Dubai’s location is concerned, this is one of the main reasons why international businessmen prefer Dubai. So, due to its strategic position on the world map, the city enjoys excellent connectivity with the rest of the world, serving as a gateway to other neighboring countries.

Steps to Start Textile Business in Dubai, UAE

With the support of the UAE government, setting up a company in Dubai has never been easier. The process of starting a textile business in the UAE is not complicated. To make things easier, the steps of the process are explained below.

Company Structure

Each company must choose a specific structure that suits its business. The third step is to determine how your business will operate and what its legal nature will be. This will demonstrate the correct and necessary legal framework.

Also, you can set up a textile business as a single shareholder or as an LLP with multiple partners. With the introduction of foreign ownership rules, an emirate sponsor (local sponsor) is no longer required. Now you can own 100% of your textile business in Dubai.

Trade Name Registration

You should choose a simple yet catchy name that is directly related to your product or service. It is important to follow the guidelines for choosing a trade name set by the UAE government. One of the most important rules is not to use controversial words in your commercial behavior.

Besides, you do not have to remember the names of religions. If you decide to name the company after a person, you must use the name exactly as it appears on the passport. Choose a name and register it legally.

Office, factory, or warehouse space

Choose a location that can attract the right target group to capture your market from the start. Choosing a location where your target customers cannot easily find your store or warehouse is counterproductive. Make sure your location meets all your business needs. Once you have decided on a location, do not forget to register with the Dubai Land Authority and purchase Ejari.

A lease, also known as a lease, is something given to you by your landlord. As well, the lease is one of the most important documents for opening a textile business in Dubai. However, the Ejari is only necessary if you decide to open a store. So, for a textile manufacturing company in Dubai, you need to replenish your warehouse, and for that you need Ejari.

However, if you intend to start a textile import/export or textile wholesale business, the interest on the physical premises of your business is exempted for the first year.

Necessary External Approvals

Once you have determined the legal structure of your company, submit all the necessary documents to the appropriate legal authorities and departments. All your documents will be checked and, if everything looks correct, you will obtain the initial approval to set up a textile industry in the UAE. You can then obtain a trade license that will allow you to carry out your business activities legally.

Required Documents Submission

The final step is to obtain a business license for your textile industry in UAE. The Dubai Department of Economic Development (DED) will issue a business license after the relevant authorities have approved your application and all documents. DED is the sole agency designated by the UAE government to issue business licenses in Dubai.

Collect the Business Trade License

The following documents must be submitted to the Dubai DED in order to acquire your textile business license in Dubai:

  • Certificate of first approval.
  • Certificate of registration of the commercial name.
  • Copies of passports of investors and shareholders.
  • Visa documents for each business partner.
  • MOA certificate confirming approval of company information.
  • If you are a resident of the United Arab Emirates, send a copy of your residence visa.
  • If you are a visitor, send a copy of your passport to HSC.
  • Obtain permission from each textile department to manufacture or sell products.
  • If you and your business partners are UAE nationals, please submit a copy of your UAE ID.
  • Ejari and lease agreement (if applicable) proving the physical address of the business or shop.


textile industry in uae

Starting a textile business in Dubai offers great opportunities in a fast growing industry. The city is a preferred location for textile entrepreneurs due to its convenient location, favorable business environment and presence of a wide market. With the right planning and dedication, your dreams can become a rewarding reality.

Also, if you want to start a textile business in Dubai, talk to the experts at MBS Consulting. We offer personalized assistance from initial concept to procurement of necessary documentation, ensuring that your textile business not only starts on a solid footing, but also continues to succeed in Dubai’s competitive environment.

So, if you want to know more about textile industry in UAE and other articles of interest, do not forget you can visit our insights section here.

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