In line with the need to know the expectations of companies in Dubai on the effects of FTAs on their businesses, the DCCI conducted a survey of textiles and garments manufacturers in the second quarter of 2005.
Of the 32 companies that responded to the survey, 50% were manufacturers of ready-made garments; 29%, textiles manufacturers; and the rest, manufacturers of made-up textile articles and carpets.
Source of the Raw Materials
The survey highlighted the great dependency of Dubai manufacturers on imported materials, with 85% of raw materials being imported and only 15 percent being sourced from local market. India was cited as the most common supplier of the industry's imported raw materials with 71% of the respondents
citing the country as their main source.
Other sources were Pakistan and China, cited by 57%; EU, by 21%; and Egypt, by 7%.
Sales of the textile products
Most of the manufacturers surveyed were export-oriented, exporting more than three-fourths (76%) of their production and retaining only 24% in the local market. Major destinations identified by Dubai textile manufacturers were the EU, identified by 61% as export destination; U.S, 50%; GCC countries, 43%; MENA, 29%; other Asian countries, 21%; and all other countries, 29% (Figure 2).
Quota System Effect on Textile Sales
The US garment quota system was eliminated in January 2005. Since US is a leading market for Dubai's exports of garments, the survey asked the manufacturers about the effect of this on their businesses.
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