Dubai, UAE — Competition among fabric wholesalers has increased in the major export hub of Dubai as it recovers from the trade embargo against Iran.

BBL Enterprises LLC, Ultra Furnishings Fabrics and Silk Weave fight hard for increased sales, market share and survival according to their principals.

“During 1981, our family business was looted and destroyed due to the Kuwait war. We moved to Dubai and made a new beginning with home furnishings, but the real opportunity to earn came in 1991 due to Russia’s break-up as CIS countries started buying from Dubai,” recalls, Subash Asar, a partner in BBL enterprises LLC, Dubai. 

During this period, Dubai wholesalers exported furnishing fabrics at retail prices to CIS countries and export now constitutes about 30% to its neighboring countries. The Dubai market is also vibrant due to hotel, tourism as well residential growth. “Imports from India are increasing and credit goes to aggressive Indian manufacturers who are more creative. The sample presentation of their collections are now attractive while Chinese suppliers excel in commodity goods at very low prices and a few high- end Chinese exporters have excellent business here,” according to Subash. The UAE brought in the maximum of its textiles from China followed by India; Iran was the biggest recipient of UAE’s home textiles but this has now come to a halt and has hurt the business, he said. 

“This has added to the tremendous pressure on exporters in Dubai and resulted in increased level of inventory and reduced sales,” he said. The recent feedback from Iran said their weaving mills are fully occupied and Iran furnishing fabric mills are the greatest beneficiaries of trade restrictions imposed by the western world. Now, buying has become a real challenge and cheap imports don’t necessarily mean ‘safe business.’  Also, Chinese wholesalers who stocked to export have begun to set up shop in Ethiopia and Nairobi, which earlier was served from Dubai. 

“Dubai wholesalers, largely import from China followed by India and limited quantity of high-end from Turkey and Europe : Turkish exporters are trying hard to compete with Chinese in lower range but have not succeeded so far ”, said Subash.

Ultra Furnishing Fabrics, a leading Dubai based furnishing fabric wholesaler began business in 1990-91 with Korean made furnishing fabrics. “Those days we sold in local markets and exports were limited to Qatar and Muscat but the dynamics changed with the Russian break-up”, said Ishwar Bharwani, partner. 

“Today Africa, Russia as well as CIS countries are the main stay while Libya and Iraq are adding up. “Conducting business has changed more than in the past and it has become expensive to be a successful wholesaler: The profile of the buyers is very diverse as we have to finally meet the consumer preferences from Africa, Central Asia, Arabs & Europeans as well as mixed tastes of immigrant population from dozens of countries,” he said. “This year we are spending $1 million on sample books alone and though we grew by 15% in 2012, the future is challenging.” Meanwhile, Pakistan is a big market for Indian furnishing fabrics but there is a need to keep a wide range of stocks to meet multi-likes of consumers which include bold, flashy and sober, he added. 

“Dubai has more windows coming up and we have to dress them as well replace many of the existing windows,” said Nazeer Khan, a partner in Silk Weave Furnishing LLC, in Dubai. “I originally started as an interior designer but I turned to distribution of furnishing fabrics to high end wholesalers in the contract segment and also to designers of palaces and hotels.” 

Khan was attracted to Italian furniture which is the choice of Arabs for home and Silk goes along with expensive Italian furniture. Silk remains the main choice to decorate royal places in Saudi Arabia, Africa and in the Emirates. “Our sales constitute 60% of silk fabrics and 70% is derived from domestic sales and balance form abroad and we are growing at 20%”, he said. Silk Weaves caters to the demand from Indian, Lebanese, European and Iranian designers.

Dubai is the commercial gateway for the neighboring countries. With only a population of 7.5 million the wholesalers have established trading links with the 1.5 billion people in the neighboring region covering the Gulf, Middle-East/Eastern Mediterranean, CIS, Central Asia, Africa and Asian sub-continent. 

Dubai logistics facilitate over 120 shipping lines and are linked via 85 airlines to over 130 global destinations. In the UAE, the population under 20 years of age makes up more than 40% of the total population. 

The UAE textile market in 2011 was valued at $13 billion which has grown 9.9% during the period 2006-2011. 

The UAE textiles industry, which exported $3.27 billion in 2011, is growing at 7% from a high of 15% during 2008. Home textiles imports are estimated to be around $1 billion a year.

Partners Subash Asar; his wife Renuka, BBL Enterprises LLC

Ishwar Bharwani, Managing Director; Pawan Lalwani, Associate Manager, Ultra Furnishings

Nazeer Khan-Partner, Silk Weave Furnishing LLC