Export cosmetics to UAE is emerging as an interesting commercial opportunity for numerous Italian companies.
The Cosmetica Italia Annual Report 2023 highlighted the significant role of the export of cosmetic products, which represents 44% of the total production of the sector. Exports recorded a notable growth of almost 18.5 percentage points, reaching a value of over 5.8 billion euros.
Among the most important foreign markets, the United States, France and Germany maintain a consolidated position, but opportunities are increasingly emerging in the expanding markets of the Middle East, including that of the United Arab Emirates.
There 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 in conforming to local preferences is a clear strength, thanks also to the development of personalized marketing strategies.
A tangible example is the growing demand for eco-sustainable products, which is addressed through the use of natural ingredients and the adoption of cruelty-free practices, thus responding to consumers' growing environmental concerns.
Digitalization has further expanded market prospects, allowing businesses to reach a wider audience through e-commerce and social media.
Given this context, it is appropriate to explore in detail the specific reasons why the UAE is increasingly emerging as an attractive destination for Italian cosmetics companies.
The United Arab Emirates represents an essential partner for Italy on multiple fronts.
This collaboration ranges from constant 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 they have become key markets for numerous Italian companies, with particular emphasis in the luxury, furniture and construction sectors. And now, the cosmetics sector is also taking on a primary role in this context.
Recent legislative reforms on foreign investment in the UAE have opened up new opportunities for Italian small and medium-sized businesses, allowing them to take advantage of growing opportunities despite the challenges of the pandemic. Italy consolidated its leadership position in the UAE, with a total export volume exceeding €3.8 billion, with a notable growth of 12.9% in the cosmetics sector.
Why this positive trend?
The United Arab Emirates offers an extremely favorable tax regime for foreign businesses, with free zones offering even more advantageous conditions.
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 businesses, including Italian operators. Such policies aim to position the UAE as a global center for investment in the technology and services sectors, offering more opportunities for foreign businesses.
Italian companies that wish to export cosmetics to the United Arab Emirates (UAE), can exploit different strategies to enter the foreign market, by making use of channels such as Amazon.ae or by participating in trade missions and sector fairs.
Each approach brings specific benefits and challenges, and the choice depends on the company's needs and resources, which can be refined with the assistance of a Temporary Export Manager (TEM).
The TEM is an expert specialized in supporting companies in all phases of export, and his presence can be decisive in achieving the set objectives. Offers detailed export expertise, including knowledge of target markets, international trade regulations and marketing tactics. For example, referring to theexport cosmetics in the UAE, a Temporary Export Manager could assist an Italian cosmetics company in entering the local market taking on the role temporarily, identifying distribution opportunities, establishing contacts with local retailers and adapting the marketing strategy to the preferences of Emirati consumers.
TEM can be crucial for an effective entry into this market, optimizing time and resources.
To confirm all this we have the experience of aagency specialized in the production of cleaning products for the home and for the person you rely on to the team of experts Octagona to successfully enter the UAE market. The TEM figure who accompanied the company on this journey registered all the products for marketing in the UAE territories and conducted detailed market research. Thanks to this and participation in sector fairs and meetings with potential local partners, Octagona has identified divasrse key companies for possible collaborations.
The expansion of business in the United Arab Emirates can therefore constitute a significant opportunity for Italian companies, considering the positive trend of the market and the policies favorable to foreign investments. With a correct strategy and an in-depth understanding of the local context, companies can take full advantage of this new export frontier.
Also for businesses eager to export cosmetics to the UAE, Octagona offers strategic consultancy and support in the implementation of every activity necessary to undertake this path internationalization.
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