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GCC Textile Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 120 Pages
  • August 2022
  • Region: Middle East
  • Mordor Intelligence
  • ID: 5572839
The GCC textile industry is projected to register a CAGR of more than 4% during the forecast period (2022-2027)

In GCC, the United Arab Emirates (UAE) has a large textile industry, although it is not advertised or marketed. It makes products such as child safety seats, curtains, luggage, and some high-end fashion for local purchase. However, its best-selling textiles are woven goods like knitwear. This industry has become so large in the country that textiles are only behind oil for income and employment. Although the UAE sells to over 50 countries, it also has a large customer base domestically.

The COVID-19 pandemic had a significant impact on the textile industry in GCC. The industry faced various problems in terms of production, raw material prices, transportation problems, non-availability of skilled workers, working capital and cash flow, and reduced export/import orders due to lockdowns and border closures. The textile, gem, and jewelry industries in India started increasing their headcount in anticipation of a spike in exports in the wake of the trade agreement between India and the United Arab Emirates (UAE).

Additionally, among the GCC countries, the UAE particularly has garnered a lot of business from other countries, moving its base of operation to Fujairah, an area in the UAE. Fujairah is called a ''free zone,'' which means that companies located there are not required to pay taxes or pay any fees for repatriation. This is one of the major factors that brought many companies and people into the UAE, which adds a larger customer base for its garments and textiles.

Developments in end-user segments, for instance, residential and commercial (hospitality), and the increasing attentiveness regarding altering inclinations of home-based interior decoration are expected to motivate the home textile industry in Saudi Arabia. The increasing rate of urbanization and improved quality of living are responsible for the growing demand for home textiles like beddings, bed sheets, towels, blankets, and covers.

Key Market Trends

The Emerging Textile Industry in the UAE

The UAE textile industry is thriving on supportive government initiatives in terms of infrastructure development, tax exemptions, and transparency in paperwork. The most recent development in the fashion frontier has been setting Dubai as a fashion hub in 2020.

The recently established Dubai Design & Fashion Council is a governmental entity established to develop and nurture a sustainable design industry in Dubai while enabling the growth and recognition of designers based in the UAE and MENA region.

The existence of an ever booming economy for luxury clothing has made UAE an important center for the apparel and textile businesses. The country has become a major textile hub in the world that includes fibers, fabrics, clothes, outerwear, home textiles, and technical textiles.

An increase in labor costs has led to automation in the textile and apparel industries. Development of technical textiles and providing innovative textile products is what the UAE manufacturers are aiming at and are showing active interest in. This will increase productivity, improve the quality of products, and aid in delivering timely shipments of the orders.

The UAE is becoming an ideal destination for investment in the textile and apparel industries due to its lack of restrictions on profit, competitive labor costs, extremely low import duty, and low corporate taxes. The availability of highly skilled and productive workers, a stable economy, and the absence of hidden costs add to the country's positive textile environment.

Changing Consumer Buying Patterns in GCC Countries

Technology plays a pivotal role in the lives of youthful consumers. From Facebook to Instagram, the Arab Gen Y population expects luxury brands to be online and easily accessible.

More than 30% of the consumers in the GCC region shop online in a month primarily due to ease of access. With millennials driving the region’s connectivity and mobile phone usage, the GCC is considered to have a strong foundation to adapt to the expansion of online shopping. According to a survey, since the pandemic, 89% of customers in the UAE and 91% of customers in the Middle East and North Africa became digital converts and intend to continue buying everything online.

As of 2021, the total e-commerce sales in the UAE reached just over USD 5 billion in 2021, and it is projected to cross USD 8 billion by 2025. The report found that more consumers in the UAE made online purchases across all categories during 2021 compared to 2020, with an average of 75% of respondents typically purchasing online.

Similarly, in KSA, revenue in the e-commerce market is projected to reach USD 12.2 billion in 2022.

Competitive Landscape

The GCC textile industry is competitive, with the presence of several small, medium, and large players in the region. Manufacturers in the region are adopting new technologies and using new innovative methods, such as 3D cotton textiles and other materials like nylon and synthetic fibers to attract consumers in the market. Players are also adopting the use of recycled and sustainable materials that are cost-effective and use less natural resources.

Some of the key players in the market include Embee Group, Unirab Polvara, Misr, Amreya, Avgol, and Kabale.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
3.1 Market Overview
3.2 Government Regulations and Initiatives
3.3 Technological Snapshot
3.4 Market Drivers
3.5 Market Restraints
3.6 Market Opportunities
3.7 Value Chain/Supply Chain Analysis
3.8 Industry Attractiveness - Porter's Five Forces Analysis
3.8.1 Threat of New Entrants
3.8.2 Bargaining Power of Buyers/Consumers
3.8.3 Bargaining Power of Suppliers
3.8.4 Threat of Substitute Products
3.8.5 Intensity of Competitive Rivalry
3.9 Impact of COVID-19 on the Market
4.1 Application
4.1.1 Clothing
4.1.2 Industrial/Technical Applications
4.1.3 Household Applications
4.2 Material Type
4.2.1 Cotton
4.2.2 Jute
4.2.3 Silk
4.2.4 Synthetics
4.2.5 Wool
4.3 Process
4.3.1 Woven
4.3.2 Non-woven
5.1 Market Competition Overview
5.2 Company Profiles
5.2.1 Unirab & Polvara Spinning Weaving & Silk
5.2.2 Misr Amreya
5.2.3 AMCO
5.2.4 Avgol Industries
5.2.5 Millennium Fashions Industries
5.2.6 Embee Group
5.2.7 kabale*

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Unirab & Polvara Spinning Weaving & Silk
  • Misr Amreya
  • AMCO
  • Avgol Industries
  • Millennium Fashions Industries
  • Embee Group
  • kabale*