The momentum is expected to accelerate even further in the coming 1-2 years with several more iconic international brands making entry plans
The UAE is poised to become a major influential player in the global fashion scene with the growing influx of emerging international brands, after the authorities removed entry barriers for global companies last year by slashing threshold value for cross-border trade, an industry expert said.
The momentum is expected to accelerate even further in the coming 1-2 years with several more iconic international brands making entry plans, drawn by a series of global outreach and engagement events such as ‘Mode Dubai’ and the vibrant prospects offered by the UAE market.
“A pivotal shift occurred in January 2023, with transformative changes to customs regulations and legislation to slash the threshold value for cross-border trade,” Tommy Lee, Managing Director of Modern Productions, a UAE-based vogue and lifestyle event platform, told Arabian Business.
“These changes have effectively taken away entry barriers, ushering in an era where international brands find it significantly more appealing to venture into the UAE market,” he said.
Lee pointed out that since the implementation of these modified customs rules, trading dynamics in the UAE have undergone a remarkable shift.
“The once daunting cost considerations that deterred international brands have been greatly eased, rendering the prospect of setting up shop here far more enticing,” said Lee, who is currently travelling world fashion capitals to curate a very specific edit of brands for the forthcoming global fashion event ‘Mode Dubai’.
UAE to witness flourishing ecosystem of fashion brands
The acclaimed fashion industry expert said the surge in growth in UAE’s fashion industry has been fuelled by a combination of factors such as tourism, the rising population of ultra-rich –or HNWIs, globally recognised industry events and infrastructure and digital transformation.
“Over the next five years, the fashion industry in the UAE – and the larger GCC region – is expected to continue its upward trajectory, witnessing a flourishing ecosystem of brands expanding their horizons and contributing to the ongoing evolution of the fashion and retail sector in the country,” Lee said.
He said with the December launch of ‘Mode Dubai’ – an event to showcase a harmonious blend of premium never-before-seen global brands, alongside emerging local boutiques – a new avenue of opportunity will emerge to engage with boutique brands worldwide, nurturing connections and inspiring them to showcase and establish their presence in the UAE.
Fashion sector emerging as a key driver of economic growth
Lee said the sudden rise in investments and brand influx has made UAE’s fashion sector to become a key driver of economic growth and cultural influence in the region.
“The UAE, in particular, has established itself as a global fashion hub, attracting both renowned international brands and fostering the growth of local designers and boutiques.”
According to Statista, the fashion industry in the region is currently estimated to be worth close to $5.5 billion, with various segments such as luxury brands, high-street fashion, modest wear, and emerging designers contributing to it.
“The growth is likely to extend to more subsectors such as sustainable fashion, tech-enabled retail experiences, and increased emphasis on local talent and creativity, going forward,” Lee said.
By James Mathew
2023
