Globally, the fashion and design industry is valued at over $1.5 trillion USD and growing. Shifts in buying habits and demographics and improved e-commerce technology in recent years are opening the door for untapped markets such as Dubai and the United Arab Emirates to participate in the industry.
Experts estimate that by the year 2025, the UAE fashion market will reach nearly $6.5 billion USD. Since fashion makes up nearly 21 percent of all e-commerce transactions, companies have more flexibility when it comes to picking a location for their headquarters. This provides the opportunity for companies to set up shop or relocate to Dubai to enjoy many benefits such as special tax incentives.
What is the Dubai Design District?
In 2013, Sheikh Mohammed bin Rashid Al Maktoum approved the creation of the Dubai Design District (often abbreviated to simply “D3”) to boost foreign investment in the creative arts, specifically design and fashion. Located near the heart of Dubai, businesses that establish a presence in the free zone will enjoy access to the design hub of the city and over 10,000 creative industry professionals from around the world.

While the D3 free zone focuses on fashion and design at its core, there are many trade licence types available for companies who work in marketing, clothing, jewellery, interior design, e-commerce, art, beauty care, and event management. D3 is also a great place for freelancers who are associated with these types of businesses.

Like many of the other free zones, companies will enjoy the benefits of 100% foreign ownership, 0% tax rate (both corporate and personal), full repatriation of capital and profits, and access to state-of-the-art infrastructure. In addition to offices and warehouse space (between 5,000 and 11,000 square feet) for companies, the Dubai Design District is home to numerous shops, restaurants, recreational facilities, and the Dubai Institute of Design and Innovation (DID).

One unique feature of D3 is the three In5 Design Centres that come fully equipped with labs and machinery that businesses can use for prototyping and designing products in wood, plastic, metal, textile, and 3D printing composite.