Our K&M Consultancy looked at various Dubai business setup possibilities and examples. This time we will touch fashion as it is also a popular professional sphere to expand and prove specific skills. But there is also another kind of things that you need to know. Additional to that, certain pro services Dubai can be a great addition
Lack of investments in the fashion industry
One of the main problems that some might face, especially those who want to start a business in Dubai. Fashion weeks are not the best solution to keep up for a running and competitive entity. Dubai’s designer Rami Al Ali tells that he and many other designers from the Middle East have some problems to gain the necessary financial means and support in a general sense. Ali’s products are couture and ready-to-wear clothes found in different department stores, including Bloomingdales and Harvey Nichols. These and other department stores are all over the Gulf Region and should be a solid basis for a company setup in the UAE in fashion. There is some lack of support of local designers. At the same time, one can find numerous products. Many people make the same kind of products and target the same audience. That’s why it is also hard to gain sales and convince people about buying exactly your product. Global partners also have more people working for them instead of a low number of workers. Usually, the difference is between hundreds of workers for international business establishments versus less than 10 for local company formation in Dubai. Fashion weeks and other events are excellent for anyone, but they cannot make the industry stay alive with qualitative and enthusiastic designers. An only real solution is getting support from investors as well as banks. Banks look somewhat cautious towards the fashion industry due to its novelty nature. Banks want to help someone who is already successful. But it is hard for a business startup Dubai or any other to get there if banks have not enough support. Many people also choose international brands over local brands even if the global brands are a bit more expensive. Ali as an example mentioned a 500-dollar (439 euro) domestic product versus 600-dollar (527 euro) international product.
According to the Dubai Design and Fashion Council (DDFC), there is going to be a growth of the fashion industry in 2019 by 6%. It is a good number, but that doesn’t show the real picture because for many local designers the future in the fashion industry is not that clear. The role in the market is more complex and needs additional research that the government and other institutions need to consider.
Despite all the challenges, K&M Consultancy encourages to open a company in Dubai. Many benefits come with all the problems. Many good reasons make the UAE very competitive for different new business setup Dubai - UAE. Our team has experience in various areas, so we know what we are talking. Among them are offshore bank account setup services. Some might still need tax consulting services to better understanding the changes in the taxation system. Fashion and other industries have capabilities to make a good outcome.