UAE’s share of global garment market shrinks
By Shakir Husain, Staff Reporter
Gulf News, United Arab Emirates
Dubai: The UAE’s garment industry is feeling the pinch as local manufacturers lose their meagre market share to exporters from low-production centres like China, India, Pakistan and Bangladesh.The rising cost of doing business in the UAE is also taking a toll on the industry as the labour-intensive sector employs about 180 staff per establishment.
Most of the current garment manufacturing business is concentrated in Ajman. Several units have gone out of business elsewhere due to rising production costs and low demand for UAE-made garments within the country, industry sources say.
An Emirates Industrial Bank (EIB) research report early this year said although the UAE garment industry had significantly declined “it is far from being wiped out”.
People in the industry say UAE manufacturers need to focus on high-end products for their exports in order to survive.
High-end products
“UAE garment exporters cannot compete with companies in China, India, Pakistan and Bangladesh where cost of production is lower. They should focus on high-end products for which foreign buyers will be willing to pay a good price,” said Tarek Abdullah, manager of machine and accessory supplier Transgulf.
He said domestic demand for garments has also grown significantly and UAE manufacturers could produce more to supply to the local market.
The EIB report estimated the number of garment units in the UAE at 100. In 2004, there were 151 units employing about 27,000 people.
The global garment trade is put at $800 billion, with the UAE’s share being just 0.1 per cent. At its peak in 1997, UAE garment exports were $250 million.
Producing high-end items can help local manufacturers stem the decline as has been seen in the case of Italy, which has a significant high value-added garment production despite a general decline in garment manufacturing in the West and a rise in Asian exports.
Competition: India and China surge ahead
India and China have been experiencing a rise in garment exports since the dismantling of textile quotas in 2005.
In 2004-05, India’s total textile exports reached $13 billion. Of this, garment exports accounted for $6 billion. By 2014, the figure is expected reach $50 billion.
China’s total garment exports were $61.6 billion in 2004, up 19 per cent from 2003. By 2014, its exports are forecast to reach $124 billion.
