Download the full report: Inside the Fashion Opportunity in Dubai.
Heavy investment in, and rapid development of, Dubai’s infrastructure, supporting much of the local and international fashion industry operating in the region, is paramount in the city’s ability to deliver on evolving consumer and industry needs.
In 2023, the city unveiled the Dubai Economic Agenda, or D33 — a plan to bolster industries and infrastructure by diversifying economic portfolios away from an overreliance on petrochemicals. Its goal is to drive sustainable economic growth and double GDP by 2033, to make Dubai “the fastest, safest and most connected city in the world”, according to the agenda outline.
As part of D33, the increasing support of creative industries including fashion saw Dubai’s government lower the barrier of entry for international businesses and offer more resources for regional talent. It has also focused on improving the transportation and logistics systems, and introduced smart technology on government platforms.
“Dubai is very different to the rest of the GCC,” says Kering’s MEA president Miral Youssef, citing the city’s speed of adoption from an operational standpoint. “The city is extremely agile and reacts very quickly to these transitions and to the needs of clients.”
This section will analyse how Dubai is optimising its infrastructure to bolster the fashion opportunity for international and local business.
Enabling Entry for International and Regional Brands
To improve how global and regional brands can enter the UAE, Dubai’s government has overhauled access to its services, putting in place smart systems to assist navigation of governmental websites and services.
“You can get every single piece of paperwork set up in [about] 48 hours. To set up a business [or] get a freelancer visa, it’s incredibly efficient,” says Rani Ilmi, founder and managing director of Frame Publicity, a Dubai-based luxury brand communications firm for the Middle East. “I think the UAE has one of the best smart governments in the world where everything can be done electronically, via one app. The infrastructure, whether you are an international business [or] a local business, is incredibly simple.”
Facilitating access for international and regional brands is a way in which the Dubai government is catering towards its residents’ consumer preferences too. In the d3 x BoF Insights survey, 25 percent of residents cited “access to international brands” as one of the most important factors of a retail destination when shopping for fashion. Twenty percent said the same about local brands.
Access for fashion businesses large and small is also prioritised by d3 as part of the wider TECOM Group’s ecosystem of sector-focused business districts championing education and innovation. D3 has cemented its status as a hub for regional headquarters within fashion, beauty and luxury, with international and regional businesses like Christian Dior, Prada, Dolce & Gabbana, Hugo Boss, Loro Piana and Michael Cinco located there.
What’s more, anyone with a licence registered by the Dubai Development Authority can work and create in d3, allowing for emerging creatives and entrepreneurs to sit side by side with major global players.
The local government is “prioritising entrepreneurship” as part of the economic growth plan, says Khadija Al Bastaki, senior vice president of d3, which also runs In5 Design — an incubator for creative talent. In5 “provides a simplified set-up” for talent, as well as “creative facilities, mentorship, guidance and facilitates access to relevant stakeholders and investors for designers to scale up.”
Newness, engagement and going beyond [the] transactional with your relationship with the customer — that’s the way to thrive.
— Fahed Ghanim, CEO, Majid Al Futtaim Lifestyle
To assist in brands’ entrance to the city, the Dubai government recently removed the need for international businesses to require a 51 percent UAE partner on paper, as was previously mandated. With that, brands typically had to pay a flat fee every year, often with a commission- based structure for a percentage of sales. Instead, recent amendments mean international businesses can now come in 100 percent on their own, relinquishing the need to find local distribution partners who require a financial cut.
While brands can now enter the region without a local partner, many still choose to work with a UAE-based entity because, without such, you are left “with no marketing support, with no real operations support,” says Ilmi. “We have seen a lot of brands actually go back to the older model because they realised it’s just a safer bet.”
While brands can now enter the region without a local partner, many still choose to work with a UAE-based entity because, without such, you are left “with no marketing support, with no real operations support,” says Ilmi. “We have seen a lot of brands actually go back to the older model because they realised it’s just a safer bet.”
TECOM and d3 have sought to assist brands facing these challenges by offering both freezone and mainland licences. For businesses within the TECOM ecosystem, brands benefit from operational set-up and can tap into various activations, events and networking opportunities.
Ilmi also suggests that independent labels might consider using the services of independent retail consultants in the area, while larger brands should work with one of the larger groups, such as Chalhoub, Al Tayer or Majid Al Futtaim. That way, “you’re then guaranteed a little bit of a consistent buy each season for your product […] [and] you’re on one of the strongest local e-commerce platforms [or] you’re in the Dubai Mall and Mall of the Emirates.”
For example, e-commerce company Ounass offers a testing ground for Al Tayer’s retail arm Insignia, launching brands online to gauge regional reception. Recently, they were the exclusive launch partner for Skims, Kith and Fear of God Essentials. Activations follow, such as custom events or pop-ups, before it rolls out physical retail and hands over operations to the wider Al Tayer Group for regional expansion.
Expanding Retail Offerings in Dubai
Most major fashion players already have a presence in some form or another in Dubai. However, brands looking to enter or expand their physical presence in the market might well face challenges with long waiting lists for retail store space.
“You cannot just go in and get a [retail] location [in Dubai] because of the scarcity,” says Roberto Cavalli CEO Sergio Azzolari. “You have to convince someone to either partner up with you or give the store to you.”
Kering is “continuously looking at developing and expanding our network along with our existing locations,” says Youssef, who adds: “That will come organically as the country or city evolves with the new developments that are being built.”
Emaar, the developer of Dubai Mall, announced in 2024 it will introduce another 240 stores to its more than 1,200 existing retail spaces and 200 food and beverage outlets. However, some brands do not have the budget or available space to expand their retail footprint.
As a result, their way into, or to expand within, Dubai’s physical retail landscape can be unlocked through multi-brand retailers and department stores like Bloomingdale’s and Harvey Nichols, as well as Etoile La Boutique and THAT Concept Store. Other multi-brand retailers with more accessible price points include Namshi, with a presence in Dubai Mall, and Apparel Group, which opened more than 100 stores across the Middle East and Asia in the first half of 2024.
Gemma D’Auria, senior partner at McKinsey & Co. and global leader of their apparel, fashion and luxury practice, also recommends brands get “much more creative and test new concepts in-store” to innovate the offering and capture consumer attention in their current spaces.
Critically, when shopping abroad, 53 percent of residents earning over US$100,000 per annum are searching for more unique and/or inspiring shopping experiences, according to the d3 x BoF Insights survey. As a result, brands and retailers need to strengthen their offering within Dubai to recapture the imagination of the highest spenders in the city, to assist in the repatriation of their spend.
“Newness, engagement and going beyond [the] transactional with your relationship with the customer — that’s the way to thrive,” says Fahed Ghanim, CEO of Majid Al Futtaim Lifestyle. “Any investment we do, whether it’s technology, whether it’s a journey that we’re designing or a brand that we’re getting into the market, the lens is: will this resonate with the customer?”
We have more of a historical set-up in Dubai, across all our various functions, whether it be from shared services, logistics or the general management of the entities.
— Miral Youssef, MEA President of Kering
For example, Ghanim works with brands to integrate next-generation technologies, including generative AI and advanced analytics, to “act faster and better” in line with customer expectations. One brand they operate uses augmented reality, allowing consumers to see virtual overlays of furniture in their homes; a beauty brand offers the chance to try different shades of lipstick without removing makeup. This, he argues, is a distinguishing feature in the physical retail offering as much as anything else.
“Our Shiseido store, for example, has a visualiser that analyses your skin and recommends which product you should use. This is something that is practical technology — it’s not gimmicky. Customers were very quick to filter between gimmicky technologies and real-use technology. […] It was an immediate success.”
With the technology only previously available in Japan, the retail offering has an additional experiential lens that helps entice and engage consumers in-store. “Integration of immersive experiences and advanced technologies and analytics to help drive personalised shopping experiences have been quite important,” he adds.
Other brands have sought and brought newness into the region through nurturing the evolution of cultural mores and regulations. For example, American jewellery brand Maria Tash, which entered the UAE about five years ago, provides luxury piercing services throughout most of its retail locations globally — a process that is not unusual in Dubai, but considered somewhat taboo as a public practice.
“Maria Tash fought to get the licence, to do it properly, so it actually became a trade function,” says Ilmi. “There are now multiple [entities] in the market [that offer piercing services] […] so there have been strides made to bring the experiences in.”
A Strategically Positioned Logistics and Talent Hub
Dubai is geographically well-positioned as a logistics hub for trade and tourism, as a gateway to the wider Middle East, Asia and African markets. There are plans to further expand its already world-leading travel and transport offering too, with a US$35 billion plan to build a new terminal at the Al Maktoum International Airport, which will make it the world’s largest airport.
As a result, many global and local brands, big and small, have situated their regional headquarters and logistical operations in Dubai.
“It allows for, from a logistical standpoint, very easy mobility — whether it be the GCC here or the Middle East as a greater remit,” says Youssef. “We have more of a historical set-up in Dubai, across all our various functions, whether it be from shared services, logistics or the general management of the entities.”
The local workforce employed by companies based in Dubai, whether retail or headquarters staff, also reflects the diversity of the residents in the region. “Last year, we saw more than 150 nationalities [of consumers] enter our stores and our workforce population reflects that [diversity],” adds Youssef. “We have over 50 nationalities currently [working] within our stores.”
With Dubai’s focus on attracting more professionals and businesses to the region, there has also been a “significant inflow of talent and investment for the creative and cultural industries,” according to Al Bastaki. “We have witnessed a lot of nationalities [enter the city] and an increase of [people] from different parts of the world [come] to Dubai, with skills in craftsmanship, tailoring, art and fabrics, [and] embroidery work.”
The d3 x BoF Insights residents survey found that over 60 percent of respondents felt that Dubai is a city that is open to new residents and expats, and a place that fosters creative talent.
In addition to its talent incubator In5, TECOM also launched the Dubai Institute of Design and Innovation (DIDI) in 2018 — a design university with a curriculum co-created with Massachusetts Institute of Technology (MIT) and The New School’s Parsons School of Design. Its programme offers multidisciplinary design degrees with a focus on visual literacy, technological fluency and business strategy.
“There’s more and more awareness in seeing that creativity is a driving force of a new economy,” says Hani Asfour, vice president of innovation and institutional partnerships at DIDI. He helps oversee the programme that is designed to train the next generation of talent in Dubai, to support the creative visions powering some of the 100 projects within the D33 plan to bolster the city’s offering and opportunities.
The city boasts other design schools nurturing Dubai’s next-gen designers, such as: Faculty of Art and Design (FAD), accredited by Middlesex University in the UK and situated in Dubai Knowledge Park; L’École School of Jewelry and Arts, supported by Van Cleef and Arpels; and Istituto Marangoni’s Dubai campus, based in Dubai International Financial Centre.
“I’m bullish on [Dubai’s] role as a hub for creative Arab talent,” says D’Auria. “Your first port of call [as a creative in the region] is going to be Dubai, because that’s where you have the confidence of ideas, the critical mass, the freedom and the support from an infrastructure standpoint.”
What’s more, changing regulations to who can enter the country based on their employment status inspired what D’Auria calls a “step-change.” She notes that the city’s shift from a more “transient place” to one of improved permanence has meant “the quality of life has really increased”.
A Growing Manufacturing Hub
Dubai is channelling resources into its manufacturing hubs to enable a holistic production process for businesses in industries like fashion, with the aim of strengthening local supply chains and stimulating homegrown production.
“Local manufacturing is growing. Localised production can help businesses rapidly overcome supply chain issues — especially during COVID-19, when we were able to produce in-house materials for medical masks, which created a need for the government to have support in localised production,” says Al Bastaki.
Now, brands like sustainability-focused activewear and streetwear brand The Giving Movement produce their garments in the UAE to minimise their carbon footprint.
Dubai Industrial City — a part of the TECOM Group since 2004 — is a regional, large logistics and industrial business hub with more than 300 factories exporting locally and globally, alongside warehousing capabilities. Its land occupancy grew by 12 percent year-on-year in 2023, and its ecosystem of customers grew by 17 percent in 2023 to reach more than 1,000 local, regional and international businesses, as reported by Emirates News Agency.
“Prototyping is also something that can easily be done in Dubai, in the Design District or in Dubai Media City,” says Asfour, referencing the interconnected ecosystem of business hubs under the TECOM umbrella. “We can rapidly prototype your ideas. […] We have the talent, we have the skill, we have the facilities. […] They’re opening manufacturing of digital chips in Abu Dhabi — this is the most advanced technology. Thirty years ago, we couldn’t do that — you had to be in Taiwan.”
Asfour notes that there remains limitations in scale, to enable localised mass production, as it will require “more space, more resources, more waste management, a faster supply chain.” However, in May 2024, Dubai Industrial City unveiled 13.9 million square feet of additional land capacity within its ecosystem to meet existing and growing demand.
“We feel our charge, as a design university, is to shift Dubai from a consumer to producing city, where we don’t only have to produce things — we produce ideas,” adds Asfour. “I would say the shift from consumer to producer and production can be anywhere from an idea to rapid prototype and maybe mass production.”
As part of the D33 plan, the government has also launched “Sandbox”, designed to encourage testing and commercialisation of new technologies to make Dubai a major innovation hub.
“This is part of the AI minister’s agenda. [D3] are trying to be part of it, working internally with fashion and AI with the team,” says Al Bastaki. This approach extends to the education sector, with DIDI University boasting a “blueprint for artificial intelligence [that] aims to accelerate the adoption of AI applications.”
Design students at DIDI University learn coding, gamification, augmented reality (AR), virtual reality (VR), 3D fabrication, robotics and AI among business and design models, says Asfour. This is because,”if we want creativity to be productive, we need designers to be able to understand how engineers think and understand business.”
Summary
With the local government’s prioritisation of economic growth and entrepreneurship, Dubai is increasingly optimising global brands’ entry into the city and region. It is also fostering job opportunities for global professionals and regional creative talent.
Brands are also exploring next-gen technologies in line with consumers expectations and governmental investment in this area. Similarly, Dubai is strengthening local supply chains to stimulate homegrown manufacturing by channelling resources into its manufacturing hubs to enable a holistic production process.
Download the full white paper, Inside the Fashion Opportunity in Dubai, to learn more about the macro-economic shifts driving change in the market and Dubai consumer behaviour, as well as broader consumer trends and cultural opportunities that fashion brands and retailers should tap today.
This is a sponsored feature paid for by Dubai Design District as part of a BoF partnership.