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How to Start a Textiles Retail Business with Meydan Free Zone
A fabric store in Al Satwa sells a metre of cotton for under 20 AED. A premium silk shop in Mall of the Emirates sells the same length for 500.
Both are thriving, because in the UAE, textile retail is not one market but dozens, layered by community, occasion, and price point.
Mordor Intelligence¹ values the UAE home textile market at USD 1.17 billion in 2025, growing at a 5.82 percent CAGR to USD 1.64 billion by 2031. The GCC textile and apparel market is projected to grow from USD 15.08 billion in 2024 to USD 20.93 billion by 2029 according to Kohan Textile Journal², and the UAE sits at the centre of it, with around 170 garment manufacturers across Abu Dhabi, Dubai, and Sharjah according to Textile Infomedia³, each one a buyer of fabric, yarn, and sewing supplies.
Statista⁴ estimates the UAE apparel market at USD 10.88 billion in 2025 with projected annual growth of 3.16 percent. The UAE's 88 percent expatriate population drives constant demand for traditional fabrics (abayas, sarees, kandoras) alongside contemporary fashion textiles and home furnishing materials, while the craft and DIY segment is growing with dedicated retailers emerging to serve knitters, crocheters, and textile artists.
Whether you are opening a fabric store, a knitting and craft shop, or a haberdashery, this activity covers the retail sale of textiles and related materials through dedicated, specialised stores.
Who is this for?
| Audience Segment | Profile |
|---|---|
| Fabric and textile retailers | Entrepreneurs opening specialist fabric stores selling cotton, silk, linen, chiffon, satin, and other materials to consumers, tailors, fashion designers, and small-batch garment producers. |
| Knitting, embroidery, and craft retailers | Businesses running dedicated craft shops selling knitting yarn, embroidery thread, tapestry materials, and related supplies to the UAE's growing hobbyist and maker community. |
| Haberdashery and sewing notions retailers | Operators running specialist stores selling needles, sewing thread, pins, buttons, zippers, and other sewing essentials to consumers, tailors, and alteration services. |
4751.00 - Retail Sale of Textiles in Specialized Stores
Under this activity, you are licensed to sell textiles and related materials directly to consumers from a specialised retail store. This covers fabrics, knitting yarn, rug, tapestry, and embroidery materials, general textiles, and haberdashery such as needles and sewing thread.
| Category | Scope |
|---|---|
| Fabrics and textiles | Fabrics of all types sold by the metre or bolt: cotton, silk, linen, chiffon, satin, polyester, wool, and blends Operate a dedicated fabric store selling to consumers, tailors, fashion designers, and small garment makers. FAMOUS UAE TEXTILE RETAILERS Regal Fabrics, Srour Textiles, Champion Textiles, Rochaan Fabric, Sew Banana (online), Handmayk (yarn and craft), and Craft Middle East. |
| Knitting yarn and craft materials | Knitting yarn, crochet yarn, and basic materials for rug making, tapestry, and embroidery Run a craft and yarn retail shop serving hobbyists, knitters, crocheters, and textile artists. UAE CONTEXT Dubai's craft and DIY retail segment is expanding, with the UAE government introducing simplified licensing for online craft retailers in 2023 to encourage entrepreneurship in the sector. |
| Haberdashery and sewing notions | Needles, sewing thread, pins, buttons, zippers, elastic, ribbons, and other sewing essentials Manage a haberdashery store selling sewing essentials to consumers, tailors, and alteration services. UAE CONTEXT Over 170 garment manufacturers across the UAE require a constant supply of fabrics, yarn, and sewing notions from specialist retail and trade outlets. |
There’s one boundary to note. This activity does not cover the retail sale of clothing.
In short: if you are selling fabrics, yarn, craft materials, or sewing notions directly to consumers from a specialised store, this is your activity. If you are selling finished clothing, that falls under a separate scope.
Third-Party Approval
No third-party approval is required for this business activity.
Anti-Money Laundering Compliance
This business activity is exempt from AML compliance requirements.
References
- ¹ Mordor Intelligence. (2026). UAE Home Textile Market — Size, Share & Industry Analysis. mordorintelligence.com
- ² Kohan Textile Journal. (2025). UAE Textile Market Overview. kohantextilejournal.com
- ³ Textile Infomedia. (2025). Overview of Textile Industry in UAE. textileinfomedia.com
- ⁴ Statista. (2025). Apparel — United Arab Emirates Market Forecast. statista.com
