Abu Ghazaleh: apparel sector going strong

THE UAE was the 11th biggest importer of clothes in 2012, according to the International trade statistics 2013 report published by the World Trade Organisation (WTO) with total imports of $4 billion constituting 0.8 per cent of the world’s total imports. 

According to the same report, the figures represent a 13 per cent increase compared to 2011. The European Union topped the list with an import value of $170 billion, while the US came second ($88), Japan was third ($34), Australia 8th, China 10th, Saudi Arabia 12th, Mexico 13th and Chile 14th in the importers’ list.

According to WTO secretariat estimates, 15 countries exported $370 billion worth of clothes, holding an 87.5 per cent share of the world’s exports in 2012. These countries, categorised according to export volumes, are: China, the European Union, Hong Kong, Bangladesh, Vietnam, India, Indonesia, the US, Malaysia, Mexico, Cambodia, Thailand, Pakistan and Sri Lanka.

These figures were released by Midhat M Abu Ghazaleh, CEO, Abughazaleh Trading Company, (Abco).

Abu Ghazaleh said: “Most of the clothes brands in the UAE work under a franchise structure or joint venture with a local partner. However, the trend is changing slowly as home-grown fashion brands are emerging to compete with international peers.

“Consumer spending is higher in the Gulf than in other parts of the world which is hopping up competition in the clothes industry and leave room for home grown brands,” Abu Ghazaleh said.

“Abco competes with international brands through the quality of its products and its price effectiveness, compared to similar products in the market. We know our customers very well and offer them products that match the diversity of cultures and lifestyles in the UAE and wider Gulf.”

The population growth that goes in parallel with influx of tourists makes the UAE clothes industry in a strong position to grow and compete regionally and internationally, according to Abu Ghazaleh.

He pointed out that there was a substantial growth in designer apparel in the UAE in 2013. He added: “This growth was mainly driven by the huge increase in inbound tourists coming into Dubai on luxury shopping trips.”

 

DESIGN DISTRICT

Abu Ghazaleh said that Dubai Design District, which is set to be established in the emirate as a full service commercial hub for design industry-related organisations, brands and supporting enterprises, will further fuel up the apparel sector.

Abco is one of the leading general trading companies in the UAE since 1975. It is a wholesale distributor and manufacturer of all types of apparel, footwear, luggage, handbags and household products. Their line of business also covers services in real estate, logistics and franchising. The company operates in the GCC countries and the wider Mena region, South Africa, South East Asia, East Europe and Russia.

“The Dubai retail industry is expected to grow to Dh151 billion over the next two years and the clothing industry is likely to get a significant chunk of this growth,” concluded Abu Ghazaleh.