Dubai’s fragrance, beauty and fashion sectors registering high growth

April 17, 2014 | By RetailME Bureau

Dubai’s total trade value of fragrance, beauty and fashion related products reached AED206 billion in 2013, marking an 8% increase over 2012 trade value of AED191 billion for fragrance, beauty and fashion products, states a report released by the Dubai Department of Economic Development (DED). Fashion sector leads the list at a total trade value of AED193 billion in 2013 followed by beauty at AED7.3 billion, while fragrance comes at the third place at a value of AED5.6 billion.

“The fragrance and allied sectors form a major component of trade in Dubai, especially the luxury and retail industry. As Dubai moves to a new level of growth and diversified economic activities, it’s time to take a fresh look at the potential in these sectors,” says Saad Al Awadi, chief executive of Dubai Exports. “When it comes to infrastructure, Dubai is adding a strong component of fashion to its economy. The multibillion dollar Dubai Design Districts project is underway and over the next decade it will act as a gateway for emerging designers from South Asia to North Africa,” he adds.

According to the report, Dubai has one of the highest cosmetic consumptions globally, offering guaranteed opportunities for the fragrance and related sectors to flourish. Mohammad Ali Kamali, director of export markets development in Dubai Exports, said that the Dubai’s fragrance trade is expected to grow by 15% in the coming year, while adding that 35% of Dubai’s exports of fragrance go to Oman, followed by Saudi Arabia at 26%, Sudan at 5% and Kuwait accounting for 4%.

The UAE is also creating dedicated zones to cater to the fragrance and allied sectors. It is estimated that currently Dubai has 30 manufacturing units in the fragrance, cosmetics and fashion sectors as well as equal numbers are operating in other emirates, as per the report. The report also mentions the level and scope for innovation and research in the fragrances and allied sectors in Dubai and the emerging Arab fashion talent as solid reasons for the sector’s development.



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