UAE: DILEMMA OF TEXTILE INDUSTRY
Many garment factories in the cities of Dubai, Sharjah and Ajman (UAE) have suffered as a result of the expiration of a multilateral agreement on textiles (Multi Fibre Agreement). Domestic producers can not compete with cheap Chinese textiles, which filled all the markets of the world. Many factories belonging to the Indian garment industry partners, have been shut down and their owners returned to their country.
Over the past two years, about 30 - 40% of apparel products manufacturers moved their business from the UAE and it is expected that more will move. Since the garment industry contributes greatly to the economy of the UAE, the manufacturers of sewing sector demand the government support, according to fibre2fashion.