Dubai is one of the most active textile and garment re-export markets in the world. Its position as a trading hub between Asian production centres, particularly India, Bangladesh, China, and Turkey, and consumption markets across the Middle East, Africa, and Europe means that businesses trading in textiles and fashion products have genuine access to both supply and demand from a single well-located base. For entrepreneurs entering this sector, the license structure is uncomplicated, but selecting the right activity codes to cover your product range from the start determines how flexibly you can trade. This guide covers the setup costs, activity codes, and registration process at Dubai South. 

What Does a Textile and Fashion Trading License Cover? 

A textile and fashion trading license authorises your business to import, export, and wholesale textile fabrics, garments, clothing accessories, footwear, fashion goods, and related fashion products. This spans ready-made garments, sportswear, haute couture, textile rolls and fabrics, haberdashery, and fashion accessories including bags, belts, and jewellery. For businesses operating across a wider range of consumer goods alongside fashion, the general trading hub page outlines how a broader license can be structured. 

Textile and Fashion Trading License Requirements 

The standard free zone documentation applies: passport copy for all shareholders, proof of residential address, and a proposed company name. No specific third-party approval is required for general textile and fashion trading. Certain product categories, such as fabric treatments involving chemicals or garments with regulated content claims, may require additional import documentation. Confirm your specific product requirements before importing. 

Relevant Activity Codes 

Activity codes for textile and fashion trading businesses at Dubai South Business Hub Free Zone: 

• 4641.00, Wholesale of Textiles, Clothing and Footwear 

• 4641.01, Wholesale of Yarn 

• 4641.02, Wholesale of Fabrics 

• 4641.05, Wholesale of Clothing, Including Sportswear 

• 4641.07, Wholesale of Footwear 

• 4751.94, Textile Trading 

• 4771.82, Men's Garment Trading 

• 4771.83, Ladies Garment Trading 

• 4771.95, Ready Made Garments Trading 

• 4771.96, Handbags and Leather Products Trading 

• 4771.88, Sports Wear Trading 

Browse the full list of textile and garment trading codes on the business activities page. 

Cost of a Textile and Fashion Trading License 

A trading license at Dubai South Business Hub Free Zone starts from AED 12,500 per year. The first five activity codes are included. For a business covering fabrics, garments, and accessories, you can incorporate all product categories within the base license cost. Use the cost calculator to generate a full itemised estimate for your specific activity selection and visa requirements. 

Setting Up Your Textile Trading Company 

Use the name check tool to confirm your company name is available, then complete the fully digital application. Your license is issued within one business day. With your license in place, you benefit from 100% foreign ownership, no personal income tax, and full repatriation of your trading profits, with no UAE national sponsor required. Dubai South Business Hub Free Zone's proximity to Jebel Ali Port makes it a strong operational base for textile businesses moving high volumes of goods through sea freight, while Al Maktoum International Airport provides efficient air freight access for time-sensitive fashion shipments. 

Frequently Asked Questions 

What license do I need to trade textiles and fashion products in Dubai? 

You need a free zone trade license with relevant textile and garment trading activity codes at Dubai South Business Hub Free Zone. 

Can I trade multiple garment and fabric categories under one license? 

Yes. Multiple textile and fashion activity codes can be combined under one license. The first five codes are included at no additional cost. 

Can a foreigner own 100% of a textile trading company in Dubai? 

Yes. Dubai South Business Hub Free Zone permits full foreign ownership with no UAE national partner required. 

What is the minimum cost for a textile trading license in Dubai? 

A trading license at Dubai South Business Hub Free Zone starts from AED 12,500 per year. 

Can I sell fashion products to UAE mainland retailers from a free zone? 

A local distributor arrangement is typically required for direct sales to UAE mainland retailers. Free zone companies can freely export internationally and trade within the free zone. 

Do I need a customs import certificate to bring textiles into Dubai? 

Standard customs documentation applies to all imports. Certain fabric treatments or product origin requirements may require additional documentation. Confirm with UAE customs before shipping. 

Can I combine fashion design with textile trading under one license? 

Yes. Fashion design and textile trading activity codes can be combined under one license at Dubai South Business Hub Free Zone. 

Is a warehouse required for textile trading? 

A warehouse is not required for registration. For businesses physically handling and distributing bulk textile goods in Dubai, appropriate storage facilities will be needed for operations. 

What are the VAT implications for textile trading in the UAE? 

Clothing and textile goods are generally subject to 5% VAT for sales within the UAE. Exports are zero-rated. Confirm your specific VAT position with a qualified adviser. 

Can I include both luxury fashion and mass-market garments under one license? 

Yes. Activity codes cover both wholesale and retail-facing garment categories. Your license scope is defined by the codes you select, not by price point or market segment.