TexpoForum to focus on ways to make UAE garment manufacturing industry more competitive

The inclusion of textile trade in the WTO has been both an opportunity as well as a challenge to the UAE Garment manufacturing industry. While some UAE companies have managed to gain ground as a result of this inclusion, others have lost out in the new scenario due to stiff competition.

One front from which the UAE garment manufacturers has been facing stiff competition for several years now, especially in the US and EU markets, is the Chinese textile industry.

China's textile and apparel exports to Europe rose 57 percent to $8.65 billion in the first half of 2005.

With China being highly competitive in textiles and clothing sector and a large exporter of clothing (enjoying a share of more than 20%), it is more than likely that the country will acquire a substantial share of the increase in market for developing countries in the future.

However the good news for Garment manufacturers in the UAE at present is that with China having joined WTO in 2001, the developed countries can impose economic safeguards till 2007 in order to limit Chinese growth. In fact, the US and EU, two of the biggest markets, have already imposed restraints on several categories of textiles imported from China.

Till last year, the UAE garment industry had to abide by pre-set quotas for shipments to the US, thereby losing its edge to quota-free countries such as Kenya and Madagascar.

However, since the abolition of quota requirements in early 2005, the garment manufacturing industry in the country has been looking at ways and means to make itself more competitive and thereby reclaim the lost markets.

"The TexpoForum, to be held on the sidelines of TEXPO, the Middle East's only event fully dedicated to meeting the requirements of the region's apparel and allied industry, will be a perfect opportunity for deliberation on this matter," said Mr. Fasahat Ali Khan, Acting Director General, Expo Centre Sharjah.

"The event will focus on several important issues that can help the UAE's garment manufacturing and allied industries meet the challenges faced from low-priced textile products," he added.

Among the topics that will discussed at the Forum are innovations in new technology and productivity enhancement solutions, latest market trends and updates in fashion technology, and the importance of UAE from a garment manufacturer's perspective. Speakers will include Mr. Ahmed Mohammed Al Midfa, Chairman of Sharjah Chamber of Commerce and Industry, Mr. Tuncay Koru of AMF Reece, Mr. Manjeet Singh Bakshi of Pegasus Japan, and Mr. Shafaat Ali Khan of Al Borj.

UAE's annual garment exports in 2003 to the world markets touched around Dh619.4 million in 2003. Of this, the US topped the list of garment importers taking 29.9 per cent of UAE's exports followed by Canada, UK, Germany, Singapore, France, Holland, Spain, Saudi Arabia and Ireland.

The UAE is also a major passageway for garment trade as re-export figures reached as high as Dh2.3 billion in 2003. The main garment re-export destinations are Algeria, Oman, Libya, Iran, Iraq and Saudi Arabia.

"Given the restraints imposed by the US and EU on certain categories of textiles manufactured by Chinese companies and also considering the fact that quota requirements are now a thing of the past, existing factories in the UAE need to utilize the excellent infrastructure to reclaim their lost share in the American and European markets," said Mr. Shafaat Ali Khan, general manager, Al Borj Garment Machinery Trading Company.

"But to do that, UAE garment manufacturers need to keep a close watch on their costs as well as the quality. This is what we would deliberate on during TexpoForum," he added.

The four-day Texpo, which will begin at Expo Centre Sharjah from September 12, 2005, will witness the launch of several machineries and equipment that will help Middle East garment manufacturers not only bring down cost of production but also help improve the quality of products significantly.

Organised by Expo Centre Sharjah with the support of the Sharjah Chamber of Commerce and Industry (SCCI), the event will be a favourite sourcing ground for the region's garment manufacturers as well as those involved in related industries like tent makers, upholsters, interior decorators, manufacturers of blinds and awnings, furniture makers, auto seat manufacturers, and boat builders.