Dubai Exports brings focus on fragrance and allied sectors with report on state of the industry

April 17, 2014 9:17 am

Dubai Exports, the export promotion agency of the Department of Economic Development (DED) – Government of Dubai, has unveiled a report on the fragrances, beauty and cosmetics sectors in Dubai as part of enabling sector development in line with the growing profile of Dubai as a diversified economy as well as exports and re-exports hub.

The Fragrance and Allied Sectors Capability Report, which is a combination of three reports – one each for Fragrance, Fashion and Beauty sectors – compiled in collaboration with the Fragrance Foundation Arabia, examines the current strengths of the industry and the opportunities emerging in Dubai for manufacturers, traders and exporters in these sectors.

“The fragrance and allied sectors form a major component of trade in Dubai, especially the luxury and retail industry. As Dubai moves to a new level of growth and economic activity in the emirate continues to generate growing interest worldwide, it’s time to take a fresh look at the potential in these sectors,” said Engineer Saad Al Awadi, Chief Executive Officer, Dubai Exports.

Dubai’s trade in Fragrance, Beauty and Fashion-related sectors in 2013 was worth 206 billion dirhams, up eight per cent over 2012. Dubai’s exports and re-exports in these sectors also increased by 10 per cent between 2012 and 2013.

“Infrastructure-wise, Dubai is adding a strong component of fashion to its economy. The multi-billion dollar Dubai Design Districts project is under way and over the next decade it will act as a gateway for emerging designers from South Asia to North Africa,” added Al Awadi.

The report highlights the manufacturing and export infrastructure in Dubai and the increasing appeal of the city as a cosmopolitan hub and lifestyle destination as strong grounds for the fragrances and allied sectors to build global competitiveness.

With per capital spend on personal care in Dubai seen to be one of the highest in the world, the influx of luxury cosmetic brands, the presence of an elite consumer segment, growth in tourism and the varied fashion choices of the multi-cultural resident population, the city has guaranteed opportunities for the fragrance and related sectors to flourish, says the report.

On the infrastructure front the UAE is creating dedicated zones to cater to the fragrance and allied Sectors. It is estimated that Dubai has 30 manufacturing units in the fragrance, cosmetics and fashion sectors currently and an equal number are operating in other emirates. The geographical location of Dubai amidst emerging markets is also a significant advantage.

The report also mentions the level and scope for innovation and research in the fragrances and allied sectors in Dubai and the emerging Arab fashion talent as solid reasons for sector development.

“Dubai Exports works on two dimensions – export markets development and development of export capabilities in promising sectors. The Fragrance and Allied Sectors Report will serve as a launch pad for a range of initiatives on the policy, infrastructure and investment fronts to make best use of the opportunities ahead,” said Mohammad Ali Kamali, Director of Export Markets Development in Dubai Exports.

“Our aim is to strengthen the fragrance, beauty and fashion sectors through training and knowledge in line with the best of international standards. Institutionalisation is the key to stable growth. The support of Dubai Government will go a long way in the fragrance and allied sectors advancing with the participation of private businesses and industry associations like us,” remarked Shahzad Haider, Chairman of Fragrance Foundation Arabia.

He added “The Emirates Authority for Standardisation & Metrology (ESMA) recently announced that it will work with the Fragrance Foundation Arabia to introduce new standardisation of perfumes by July 2014 to control growing piracy and counterfeiting”.

A holistic approach that targets the fashion, beauty and cosmetics sectors together, improved domestic manufacture and exports, quality control, local and overseas marketing initiatives and foreign investment – especially from global brands – to expand the local manufacturing base are some of the strategic initiatives proposed for sector growth in the report.

For further information, please contact:
Faisal Shamsudheen
Marketing & Communication Department
Department of Economic Development
Tel: (971 4) 361 3070