Dubai: Dubai's total trade value of fragrance, beauty and fashion related products reached Dh206 billion in 2013, according to a report released by the Dubai Department of Economic Development (DED) on Wednesday.
This marked an eight per cent increase over 2012 trade value of Dh191 billion for the fragrance, beauty and fashion products.
The Fragrance and Allied Sectors Capability Report, which is a combination of three reports one each for fragrance, fashion and beauty sectors is compiled by DED in collaboration with the Fragrance Foundation Arabia. It examines the current strengths of the industry and the opportunities emerging in Dubai for manufacturers, traders and exporters across these sectors.
Fashion sector leads the list at a total trade value of Dh193 billion in 2013 followed by beauty at Dh7.3 billion while fragrance comes at the third place at a value of Dh5.6 billion, according to the report.
The Emirates Authority for Standardisation and 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.
'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 diversified economic activities, it's time to take a fresh look at the potential in these sectors, said Saad Al Awadi, chief executive of Dubai Exports.
When it comes to infrastructure, Dubai is adding a strong component of fashion to its economy. The multibillion 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, he added.
The report highlights the manufacturing and export infrastructure in Dubai and the increasing appeal of the city as a cosmopolitan hub and lifestyle destination.
Dubai, as per the report, has one of the highest cosmetic consumptions in the world as well has guaranteed opportunities for the fragrance and related sectors to flourish.
Mohammad Ali Kamali, Director of Export Markets Development in Dubai Exports, said that the Dubai's fragrance trade is expected to grow by 15 per cent in the coming year.
He added that 35 per cent of Dubai's exports of fragrance go to Oman, followed by Saudi Arabia at 26 per cent, Sudan at five per cent and Kuwait four per cent.
'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, Kamali said.
The UAE is creating dedicated zones to cater to the fragrance and allied sectors. It is estimated that currently Dubai has 30 manufacturing units in the fragrance, cosmetics and fashion sectors as well as equal number are operating in other emirates, as per the report.
The geographical location of Dubai and its proximity and accessibility to the 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 the sector's development.