Page 27 - May-June-2020

UAE apparel sales reach over
26 12

$12billion: Dubai Chamber
Textile exports post 4.10%

According to Dubai Chamber of Commerce and conditions become more favorable, while consumer
growth in four months, cross
Industry, the value of apparel sales in the UAE confidence strengthens. Despite the dominance of
amounted to $12.3bn, registering an annual growth store-based retail, online retail sales are witnessing a
rate of about 4.8pc, while the sector is expected to strong growth as many well-established brands
see stronger performance over 2020-2023 period explore Omni-channel retailing, either through third
parties, their own digital storefronts, or both.
with the effect. $4,586 billion mark

The apparel market is the major segment and key Over the next five years, menswear is expected to
contributor to UAE’s retail sector. Although UAE register a compound annual growth rate (CAGR) of
positions itself as a world class retail hub but the about 3.8pc between 2019 and 2023 to reach
Textile group exports from the country during the
exports included cotton yarn decreased by 2.14
global fashion brands still view the country as a US$7.8bn in 2023 as retailers adjust to consumers’
per cent, cotton cloth by 4.83 per cent, tents,
first four months (July-October) of current financial
preferred entry point for establishing their presence preferences and correct supply within the market.
canvas and tarpulin by 1.58 per cent.
year increased by 4.10% as compared to the
Women-wear is expected to see a CAGR of 4.9pc in
in the MENA region. sales over the same period to reach $5.2bn in 2023,
exports of the corresponding period of last year.
During the period from July-October, 2019, the
largely driven by stable footfall and an increasing in
The analysis identified menswear as the spend on modest fashion.
Meanwhile, textile sector exports witnessed about
country exported about 40,246 thousand dozen of
top-performing category with the segment knit wear valuing US $1.054 billion against the
7.44% growth in the month of October, against the
accounting for $6.2bn worth of sales last year or Meanwhile, the children’s apparel segment is
exports of 37,790 thousand dozen worth of US
exports of same month last year, according to the
53pc of the market value, followed by women-wear expected to remain highly competitive, supported by
latest data of advance releases on foreign trade
$962.862 million in the same period last year, which
with 34pc and children’s apparel 7pc. good quality products and affordable prices offered AD
was up by 9.49 per cent.
statistics, released by the Pakistan Bureau of
Statistics. by well-established brands. Sales within this category
The outlook for UAE apparel sales is expected to are projected to register a CAGR of 3.7pc over the
During the period under review, 172,547 metric
improve over the next five years as economic 2019-2023 period to reach $1billion by 2023.
During the period from July-October, 2019-20,
tons of bed wear worth US $817.665 million were
textile products worth over US $4.586 billion also exported as compared to the exports of
exported against the exports of US $4.406 billion of 144,574 metric tons valuing US $773.447 million in
the same period last year, showing an increase of the same period last year. The exports of above
4.10 percent. product witnessed 5.72 per cent growth in the first
Imported Cotton: Government levies 3pc regulatory duty
four months of current financial year.
On month on month basis, textile products over US
$1.214 billion exported in month of October, as Meanwhile, 58,030 metric tons of towels worth US
The government has levied 3pc regulatory duty on rate to 3pc.
$251.647 million were also exported as compared
compared to the exports of US $1.130 billion of the
the import of cotton to facilitate the growers to the exports of 60,041 metric tons valuing US
same month last year. During the period under
blighted by high production cost and low market They further said another reason behind keeping the
review, exports of readymade garments grew by 12
$249.651 million in the same period last year. From
prices. The Federal Board of Revenue (FBR) issued rate lower is the import of cotton fell sharply during the
July-October, country fetched $906.663 million by
per cent, knitwear 9.49 per cent, bed wear 5.72 per
SRO 949(I)/2019 in compliance to the decision taken last fiscal year. The country imported raw cotton worth
exporting about 19,954 thousand dozen of ready
cent, towels 0.80 per cent, art, silk and synthetic
by the Economic Coordination Committee (ECC) of $767 million during fiscal year 2018/2019 as
textile increased by 9.46 per cent respectively.
made garments, which were recorded at 15,119
the Cabinet in its meeting held on July 31, 2019. compared to $1.07 billion in the preceding fiscal year,
thousand dozen worth US $809.520 million in the
posting 29pc decline. Cotton ginning declined by
Meanwhile, exports of raw cotton from the country corresponding period last year.
Initially, the authorities were unanimous on 12.74pc due to decrease in production. The situation
during the period under review increased by 0.78
imposing 10pc regulatory duty in a bid to provide in Punjab, which contributes over 70pc of the crop, is
However, exports of raw cotton from the country
per cent, cotton carded or combed 100 per cent
farmers with a cover as the ECC was informed that more worrisome.
came down from US $392.948 million in the first
and yarn other then cotton yarn grew by 21.24 per
area under cultivation as well as cotton production four months of last financial year to US $384.553
cent respectively, the data revealed.
was continuously shrinking. Interestingly, the The government has set a production target of 15
million in the same period of current financial year.
The exports during the period increased from US
government imposed only 3 percent regulatory million bales this year with a goal of 25m bales by
However, in the last four months of the current
$7.270 billion during last year to US $7.547 billion
duty on cotton import instead of 10 percent. 2025. Therefore, Punjab has been told to jack up its
financial year, the exports of textile products which during the current fiscal year, showing growth of
observed negative growth in their respective production to 10m bales from 6.8m bales last year
3.81 per cent.
According to FBR officials, certain quarters were — a 32pc increase.
not happy with the levy of 10pc regulatory duty on
import of cotton; therefore, a strong lobby of Also, the recent Indian ban on imports means
importers influenced the government to restrict the cotton may have to be sourced from the US.
May/June 2020
October/November 2019