Currently undergoing significant transformation, the GCC textile market is projected to grow from $16.32 billion in 2025 to $25.21 billion by 2032, expanding at a CAGR of 6.4 per cent during this period. This expansion is being fueled by rapid urbanization, evolving consumer preferences, and strategic government initiatives aimed at increasing regional self-reliance in textile production.
The United Arab Emirates (UAE) and Saudi Arabia are at the forefront of this growth. Dubai's established role as a global textile trading hub, exceeding $4.5 billion in trade in 2023, continues to drive the market. Simultaneously, Saudi Arabia's ambitious Vision 2030 is accelerating domestic manufacturing, including a $50 million investment in a textile production hub dedicated to Islamic and modest fashion, bolstering self-sufficiency and meeting regional and global demand.
Growth in this segment is dominated by the synthetic fibers segment, accounting for 48 per cent of the market in 2025 due to their cost-effectiveness and durability, especially in high-temperature climates. Natural fabrics hold approximately 32 per cent of the market, catering to luxury and sustainable fashion preferences. The apparel segment remains the largest with a 54 per cent share, propelled by growth in sportswear, Islamic fashion, and high-end brands. Technological advancements and expanding retail infrastructure, including e-commerce, are enhancing local manufacturing efficiency and market accessibility.
Despite the optimistic outlook, challenges persist, notably a heavy reliance on raw material imports, which exposes the region to price volatility. High energy costs, limited skilled labor, and regulatory hurdles also impede local production scalability.
However, abundant opportunities lie in sustainable fashion and technical textiles. The global push for eco-friendly products creates avenues for GCC manufacturers to innovate with organic and recycled materials. The rising demand for modest and Islamic fashion presents a lucrative niche, both domestically and for export. Furthermore, increasing foreign direct investment (FDI) and international collaborations are expected to unlock new revenue streams, positioning the GCC as a significant manufacturing and export hub in the global textile industry.
