UAE’s share of global garment market shrinks
\nBy Shakir Husain, Staff Reporter
\nGulf News, United Arab Emirates<\/p>\n
<\/p>\n
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.<\/p>\n
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.<\/p>\n
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”.<\/p>\n
People in the industry say UAE manufacturers need to focus on high-end products for their exports in order to survive.<\/p>\n
High-end products<\/p>\n
“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.<\/p>\n
He said domestic demand for garments has also grown significantly and UAE manufacturers could produce more to supply to the local market.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Competition: India and China surge ahead<\/p>\n
India and China have been experiencing a rise in garment exports since the dismantling of textile quotas in 2005.
\nIn 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.
\nChina’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.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\n