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Exporting cosmetics to the UAE, a growing sector

Exporting cosmetics to the UAE, a growing sector

In summary
  • According to the 2023 Annual Report of Cosmetica Italia, exports account for 44% of Italian cosmetics production and exceed 5.8 billion euros.
  • Italian exports to the United Arab Emirates exceed 3.8 billion euros, with a 12.9% growth in the cosmetics sector.
  • The UAE offers a favorable tax regime, free zones, and, despite the corporate tax introduced in 2023, among the lowest rates in the world.
  • Amazon.ae, trade missions and sectoral fairs are the main entry channels for Italian cosmetics in the United Arab Emirates.
  • The Temporary Export Manager can register products, conduct market research and identify local distributors, optimizing the company’s time and resources.

Exporting cosmetics to the EAU is emerging as an attractive business opportunity for many Italian companies.

The Cosmetica Italia Annual Report 2023 highlighted the significant role of cosmetics exports, accounting for 44% of the sector's total output. Exports grew significantly by nearly 18.5 percentage points, reaching a value of more than 5.8 billion euros. 

Among the most relevant foreign markets, the United States, France and Germany maintain an established position, but opportunities are increasingly emerging in the expanding markets of the Middle East, including the United Arab Emirates.

The Growing attractiveness of Italian cosmetics in these regions is due to the high quality of the products, their innovative formulations and the use of natural ingredients.

In addition, the flexibility of Italian companies to conform to local preferences is a clear strength, thanks in part to the development of customized marketing strategies. 

One tangible example is the growing demand for environmentally sustainable products, which is being addressed through the use of natural ingredients and the adoption of cruelty-free practices, thereby addressing consumers' growing environmental concerns.

Digitization has further broadened market prospects, enabling businesses to reach a wider audience through e-commerce And social media.

Given this background, it is worth exploring in detail the specific reasons why the UAE is increasingly emerging as an attractive destination for Italian cosmetics companies.

cosmetics export UAE

Exporting cosmetics to the UAE, why does it pay off?

The United Arab Emirates is an essential partner for Italy on multiple fronts. 

This collaboration ranges from ongoing political dialogue on bilateral issues and regional security to the promotion of culture, highlighted by the opening of the first Italian Cultural Institute in Abu Dhabi. 

On the economic side, Dubai and Abu Dhabi have become key markets for many Italian companies, with particular prominence in the luxury, furniture and construction sectors. And now, the cosmetics sector is also taking a primary role in this context.

The advantages of exporting to the United Arab Emirates as a destination

Recent legislative reforms on foreign investment in the UAE have opened up new opportunities for small and medium-sized Italian companies, enabling them to take advantage of growing opportunities despite the challenges of the pandemic. Italy has consolidated its leadership position in the UAE, with total export volume exceeding €3.8 billion, with significant 12.9% growth in the cosmetics sector.

How come this positive trend?

The UAE offers an extremely favorable tax regime for foreign companies, with free zones offering even more advantageous terms. 

Despite the introduction of new corporate taxes in 2023, the country maintains rates among the lowest in the world, ensuring a welcoming tax environment for foreign investors.

The country is also implementing significant economic reforms to attract innovative companies, including Italian players. These policies aim to position the UAE as a global center for investment in the technology and services sector, offering more opportunities for foreign business.

Temporary Export Manager UAE

Export cosmetics, the crucial role of the Temporary Export Manager

Italian companies wishing to Exporting cosmetics to the United Arab Emirates (UAE), can leverage different strategies to enter the foreign market, making use of channels such as Amazon.ae or participating in trade missions and industry fairs.  

Each approach has specific advantages and challenges, and the choice depends on the needs and resources of the company, which can be refined with the assistance of a Temporary Export Manager (TEM). 

The TEM is an expert who specializes in supporting companies at all stages of exporting, and his presence can be instrumental in achieving their goals. He offers detailed expertise in the field of exporting, including knowledge of target markets, international trade regulations, and marketing tactics. For example, referring to the’export cosmetics in the UAE, a Temporary Export Manager could assist an Italian cosmetics company in entering the local market Taking office temporarily, identifying distribution opportunities, establishing contacts with local retailers and tailoring the marketing strategy to the preferences of Emirati consumers.

TEM can be crucial for effective entry into this market, optimizing time and resources.

Confirming this, we have the experience of an’company specializing in the production of household and personal cleansing products that has relied on to the team of experts from Octagona to successfully enter the UAE market. The TEM figure who accompanied the company on this journey registered all products for marketing in the Emirati territories and conducted detailed market research. Through this and participation in trade fairs and meetings with potential local partners, Octagona identified diverse key companies for possible collaborations. 

What Octagona can do for your business

Business expansion in the UAE can therefore be a significant opportunity for Italian companies, considering the positive market trend and favorable policies for foreign investment. With the right strategy and a thorough understanding of the local environment, companies can take full advantage of this new frontier for exports. 

Even for businesses eager to exporting cosmetics to the UAE, Octagona offers strategic advice and support in implementing any activities necessary to embark on this path of internationalization. 

Contact us for information. 

Frequently Asked Questions

Why is it profitable to export Italian cosmetics to the United Arab Emirates?

It makes sense because the UAE combines growing demand and favorable fiscal conditions. Italian exports to the country exceed 3.8 billion euros, and in the cosmetics sector they are growing by 12.9%. Quality, innovative formulations, and natural ingredients make Italian products highly appreciated, while reforms on foreign investment facilitate SMEs.

What tax benefits do the United Arab Emirates offer foreign cosmetic companies?

The United Arab Emirates offers a very favorable tax regime for foreign companies, with free trade zones that guarantee even more advantageous conditions. Even after the introduction of new corporate taxes in 2023, the country maintains some of the lowest rates in the world, creating a welcoming environment for foreign investors.

Which channels can an Italian company use to sell cosmetics in the UAE?

An Italian company can enter the UAE through Amazon.ae, trade missions and sectoral fairs. Each channel has specific advantages and challenges, and the choice depends on the company’s needs and resources. Digital channels, with e-commerce and social media, also allow reaching a wider audience.

What does a Temporary Export Manager do to export cosmetics to the United Arab Emirates?

The Temporary Export Manager is an expert who temporarily takes on the leadership of the export department. For cosmetics in the UAE, he identifies distribution opportunities, creates contacts with local retailers, knows international trade regulations, and adapts marketing to the preferences of Emirati consumers, optimizing the company’s time and resources.

What product trends are demanded by cosmetic consumers in the UAE?

There is growing demand for eco-sustainable products, to which Italian companies respond with natural ingredients and cruelty-free practices, in line with consumers’ environmental concerns. Quality, innovative formulations, and marketing strategies tailored to local preferences are also important factors, which Italian brands know how to adapt flexibly.

How did an industrial cleaning company help Octagona enter the Emirati market?

Octagona has teamed up with a company that produces household and personal care products to create a Temporary Export Manager. TEM has registered all products for marketing in the UAE and conducted a detailed market research. Through industry trade shows and meetings with local partners, several key companies have been identified for possible collaborations.

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