How to Set up a Clothing Manufacturing Business in the UAE

Author: Hanoof Al Naama
Published: April 22, 2024

Overview of Clothing Manufacturing Opportunities in the UAE

The United Arab Emirates (UAE) has emerged as a major player in the global textile industry. Strategically located at the crossroads of trade routes, the UAE boasts a well-established infrastructure and a strong focus on exports, making it a prime location for clothing brand manufacturers and apparel industries.

With a thriving apparel manufacturing market catering to both regional and international audiences, the UAE provides fertile ground for aspiring manufacturers. The robust infrastructure and established export channels create a supportive environment for businesses to flourish.

This guide delves specifically into the exciting opportunities within the "Manufacture of Wearing Apparel, Except Fur" category, discussing the business activities suitable for entrepreneurs seeking to establish a successful manufacturing of clothing business in the UAE. The guide covers the specific business activities you can include under your trade license when venturing into clothing manufacturing within the UAE.

Business Activity Classification: 1410.00 Manufacture of Wearing Apparel, Except Fur Apparel

Scope and Coverage

This business activity encompasses the production of various types of clothing items but excludes those made specifically from fur. The scope of this class is quite broad, covering a wide range of materials and garment types.

Included Activities:

Specific Business Activity Codes and Descriptions

1410.01 - Manufacture of Wearing Apparel Made of Leather or Composition Leather

Description: This involves creating clothing and accessories from leather or composition leather, specifically designed for protection and durability in industrial settings.

Examples:

1410.02 - Manufacture of Workwear

Description: This covers clothing designed for specific jobs or industries.

Examples:

1410.03 - Manufacture of Other Outerwear

Description: This is a broad category encompassing various outerwear made from woven fabrics (like cotton or wool), knitted fabrics (like sweaters), crocheted fabrics, or non-woven materials (like felt). It applies to clothing for men, women, and children.

Product Types:

Materials: Woven, knitted or crocheted fabric, nonwovens, etc.

1410.04 - Manufacture of Underwear and Nightwear

Description: This includes undergarments made from woven or knitted fabrics and lace. It covers garments for men, women, and children.

Product Types:

Materials: Woven, knitted or crocheted fabric, lace, etc.

1410.05 - Manufacture of Babies' Garments and Activewear

Description: This category focuses on clothing specifically designed for babies, as well as activewear.

Product Types:

1410.06 - Manufacture of Hats and Caps

Description: This covers headwear of all shapes and sizes.

Examples:

1410.07 - Manufacture of Other Clothing Accessories

Description: This includes a wide range of items that complement clothing.

Product Types:

1410.08 - Custom Tailoring

Description: This refers to the process of creating garments made to fit a specific person's measurements.

1410.09 - Manufacture of Headgear of Fur Skins

Description: This refers specifically to hats and caps made primarily from fur skins.

1410.10 - Manufacture of Footwear of Textile Material Without Applied Soles

Description: It covers footwear made from textile materials (fabrics) but excludes items where the sole is attached separately during the manufacturing process.

Examples:

Exclusions from This Business Activity Class

The following items are NOT included in the "Manufacture of Wearing Apparel, Except Fur" classification:

Regulatory Requirements and Compliance

Third-Party Approval Requirements

All business activities under codes 1410.00, 1410.01, 1410.02, 1410.03, 1410.04, 1410.05, 1410.06, 1410.07, 1410.08, 1410.09, and 1410.10 require third-party approval from Sharjah Municipality, post-acquiring of the business license.

Economic Substance Return Filing

Exemption Status: Business activities 1410.00, 1410.01, 1410.02, 1410.03, 1410.04, 1410.05, 1410.06, 1410.07, 1410.08, 1410.09, and 1410.10 are exempt from the Economic Substance Return filing requirement.

Anti-Money Laundering Compliance

Exemption Status: Business activities 1410.00, 1410.01, 1410.02, 1410.03, 1410.04, 1410.05, 1410.06, 1410.07, 1410.08, 1410.09, and 1410.10 are exempt from Anti-Money Laundering compliance requirements.

Summary Table: Business Activity Codes for Clothing Manufacturing

Activity Code Description Third-Party Approval Economic Substance AML Compliance
1410.00 Manufacture of Wearing Apparel, Except Fur Apparel Sharjah Municipality Exempt Exempt
1410.01 Manufacture of wearing apparel made of leather or composition leather Sharjah Municipality Exempt Exempt
1410.02 Manufacture of workwear Sharjah Municipality Exempt Exempt
1410.03 Manufacture of other outerwear Sharjah Municipality Exempt Exempt
1410.04 Manufacture of underwear and nightwear Sharjah Municipality Exempt Exempt
1410.05 Manufacture of babies' garments, tracksuits, ski suits, swimwear Sharjah Municipality Exempt Exempt
1410.06 Manufacture of hats and caps Sharjah Municipality Exempt Exempt
1410.07 Manufacture of other clothing accessories Sharjah Municipality Exempt Exempt
1410.08 Custom tailoring Sharjah Municipality Exempt Exempt
1410.09 Manufacture of headgear of fur skins Sharjah Municipality Exempt Exempt
1410.10 Manufacture of footwear of textile material without applied soles Sharjah Municipality Exempt Exempt

Additional Resources for Business Setup in the UAE

For entrepreneurs looking to establish a clothing manufacturing business in the UAE, SPC Free Zone offers several resources:

Related Business Opportunities

The original content references related business opportunities in the UAE:


This guide is published by SPC Free Zone to help entrepreneurs understand the business activities and licensing requirements for establishing a clothing manufacturing business in the UAE.