Document Sample
Zrich_ Powered By Docstoc
					United Arab Emirates
Perfume Sector

Compiled by:

Swiss Business Hub, United Arab Emirates

Dubai, June 2005

1. Summary of the Content

      Consumption of cosmetics and fragrances in the Gulf States is one of the highest
      per capita in the world with the average purchase estimated to be in the region of
      US$334 per head. With a growing population (5% p.a. and 60% of the population
      under 25), huge expansion in retail space (the amount of retail space dedicated to
      beauty products has grown by over 30% in the past 3 years) and tax free incomes
      as the norm it is hardly surprising that the purchase of beauty products in the UAE
      has been rising at over 12.5% per year. It is estimated that the spend on beauty
      products in the Arabian Gulf States in 2005 will exceed US$2.1 Billion.1

2. General Industry Sector- / Product Group Development and Policy

      The UAE market tends to be more consumer conscious than most other countries
      due to the lager disposable income and their traditional customs relating to the
      abundant use of perfumes. To gain a market share in a highly competitive market,
      a known brand name is a major requirement. No name products can only been
      sold in the low price range if any.

3. Domestic Production

      There are several companies manufacturing perfume. However, there is no local
      producer of essences for the perfume industry. All manufactories need to import
      essences and blend them then to their own perfume.

      These are some of the important local Perfume producer :

      -    A M Dhamma Perfumes Industry (LLC); P.O. Box: 12943 – Dubai; Tel.: 04
          347 6663
      -   Hamid Perfume Factory, Arabic and French perfumes, Dubai
      -    French Arabian Perfumes Industrial FZE, P.O. Box 61277 - Jebel Ali Free
          Zone; Tel.: 04 881 85 77

Download from:
       -    Ajmal Perfume Manufacturing & Oudh Processing Industry, P.O. Box 3141 –
            Dubai; Tel.: 04 338 22 11;
       -     Banafa Arabian Perfumes Industry FZE, P.O. Box 61266 – Dubai; Tel.: 04
            881 95 80
       -    Amalia Perfumes Manufacturing, Dubai
       -     Allure International Aerosols LLC, P.O. Box 51031 – Dubai; Tel.: 04 286 37
       -     Chemcrown International Ltd., P.O. Box 52162 – Dubai; Tel.: 06 55 37 53
       -    Emicos International Ltd., P.O. Box 16758 – Dubai; Tel.: 04 881 65 16
       -    Swiss Arabian Perfumes Group; P.O. Box 1615 – Sharjah, Tel.: 06 577 44 51;

4. Export2

4.1 Direct trade (Dubai)

            Perfume raw materials

            The local industry exports approximately 30.8 mio AED worldwide. The Neth-
            erlands are the main export destination with about 10.7 mio AED, followed by
            the US, Russia, Sudan and Saudi Arabia.

            Perfumes, toilet waters and eau de Cologne

            The Netherlands (24.6 mio AED), Saudi Arabia (16.5 mio AED) and Kuwait
            (10.7 mio AED) are the biggest export destination of perfumes, toilet waters
            and eau de Cologne with over 60% of total exports. Total exports amount to
            83.5 mio AED.

4.2 Free trade zone

            Perfume raw materials

            In line with its role as regional hub most exports from the free trade zones are
            destinated either to Gulf states, with Saudi Arabia (18.9 mio AED), Kuwait
            (11.7 mio AED.) and Bahrain (10.6 mio AED) leading the field. The US are the
            largest western country among the importers of UAE perfume (rank 4, 10.5
            mio. AED). Total exports from the free trade zones amount to 97.2 mio. AED.

    Source: Dubai External Trade Statistics, 2003

Download from:                                                                2
       Perfumes, toilet waters and eau de Cologne

       The situation is similar to the perfume raw materials with GCC Countries
       namely Saudi Arabia (85.9 mio AED), Bahrain (47.6 mio AED), Kuwait (45.2
       mio AED) being the biggest importers of perfumes, toilet waters and eau de
       Cologne from Dubai. The US (rank 4, 32.3 mio AED) and the Netherlands
       (rank 5, 29.4 mio AED) are the biggest European importers of perfume from

    Perfumes, toilet waters, Eau de Cologne (in mio AED)
                                      Import                          Export                 Re-export
                       Direct trade     Free Zone trade   Direct trade Free Zone trade   (direct trade only)
    Bahrein                                                                47.6 (2)
    Dubai Duty Free
    France              273.9 (1)          203.4 (1)
    Iran                                                                                      23.6 (3)
    Italy                44.9 (4)           24.9 (3)
    Kuwait                                                                45.2 (3)
    Netherlands                                            24.6 (1)       29.4 (5)            14.3 (4)
    Saudi Arabia                                           16.5 (2)       85.9 (1)
    Singapore                                                                                  13 (5)
    Spain                                   14.2 (4)
    Switzerland           23 (5)
    UK                   48.6 (3)           10.2 (5)                                         35.8 (2)
    USA                  64.4 (2)           39.7 (2)                      32.3 (4)           101.9 (1)
       (The numbers in brackets show the ranking of the country in terms of biggest
       export resp. import destination)

5   Imports

5.1 Direct trade (Dubai)

       Perfume raw materials

       There are 44 countries selling perfume raw materials (perfume in liquid or solid
       form ) to the U.A.E. France is by far the biggest supplier with 60% of the total
       Perfume raw materials imports to the UAE (73 mio AED) followed by Italy (12
       mio. AED), the US (9.4 mio. AED) and India (6 mio AED). The total raw mate-
       rial imports to the UAE amount to 123.8 mio AED.

       Around 90% of the imports (123 mio AED.) are re-exported. The top re-export
       destinations are the US (26 mio AED), Iran (18 mio AED.), Saudi Arabia (11
       mio AED.) and Singapore (8 mio AED).

       Perfumes, toilet waters and eau de Cologne

       The top 5 supplier are all western industrialized countries. France is the big-
       gest supplier (274 mio AED) right before the US, the UK, Italy and Switzerland.
       Total imports to the UAE amount to 538 mio AED of which perfume and toilet
       waters account for around 97% and the eau de cologne for 3%. The main re-
       export destinations are the US (102 mio. AED) followed by the UK (35.8 mio.
       AED), Iran (23.6 mio. AED)

Download from:                                                                               3
5.2 Free trade zone

       Perfume raw materials

       Similar to the direct trade suppliers, France is the biggest furnisher of perfume
       raw materials with about 53% of the total imports to the free trade zones. Other
       major suppliers are Italy, the US, Spain, China and Germany. Total imports to
       the Free trade zones amount to 37.4 mio AED.

       Perfumes, toilet waters and eau de Cologne

       France is by far the biggest supplier of perfumes, toilet waters and eau de Co-
       logne with around 65% of total FTZ imports. Other major supplying countries to
       Dubai FTZs are the US (39.7 mio AED), Italy (24.9 mio AED), Spain (14.2 mio
       AED), the UK (10.2 mio AED) and Switzerland (7.2 mio AED). Total imports to
       Dubai FTZs amount to 313.2 mio AED.

6   Consumers

    Consumers are running after brand names. Well known designers or glamorous
    personalities who lend their names to perfumes gain instant attention in a market
    where dozens of new brands of perfumes and toiletries come out every year. The
    new concept of non-gender products which can be used by men and women i.e.
    fragrance, deodorants etc. are well liked on the UAE. Top brands with skin care
    products in the same line as cosmetics and perfumes are also popular.

7   Trade channels – e.g. import trade, own subsidiaries, direct sales, names
    and addresses of important importers or consumers; tender system

    A local representative is a legal requirement for doing business in the UAE, Swiss
    and Lichtenstein exporters are advised to target the sales for their cosmetics and
    perfumes through a local agent or distributor. In selecting an agent, the
    Swiss/Lichtenstein company should consult the Swiss Business Hub Dubai and
    engage a local lawyer before signing any agreement.

8   Trade fairs and exhibitions, advertising, trade journals

        •   “Middle East Exclusive, 3rd duty free, travel retail and luxury products ex-
            hibition”, 6-8 December 2005,

        •   “Beauty World Middle East, Gulf Beauty”, 22-24 May 2006,

Addresses of important public authorities, industry associations, other relevant
Dubai Chamber of Commerce,
Dubai Customs,

Download from:                                                                 4
Date:                        June 2005
Author:                      B. Schmid
Author’s address:            Swiss Business Hub Dubai
                             c/o Consulate General of Switzerland
                             P.O. Box 9300
                             Dubai, United Arab Emirates
                             phone +971 4 329 04 08
                             Fax +971 4 331 36 79

Download from:                                          5

Shared By: