2018 Exports of Fabrics for Traditional Ethnic Wear to Middle East

摘要

Exports of fabrics for thobe (a traditional ethnic garment) to the Middle East moved vigorously up to 2016, but stagnated in 2017. The main factor for stagnant exports was slow local consumption caused by the decline in oil prices. Thobe is often renewed for celebrating the end of Ramadan (the Islamic holy month of fasting), and nearly 50% of the consumption amount are Japanese-made products. Saudi Arabia and other Gulf countries have plans to raise the domestic prices of gasoline and public utilities such as water and electricity, as well as introducing a value-added tax (VAT) of 5% from 2018, and Saudi Arabia and the U.A.E. have imposed a 5% tax on goods and services excluding some items of food, medical care and education. Other member countries of the Gulf Cooperation Council (GCC) are expected to follow. It appears that there is nothing else the governments can do, which have been guaranteeing a stable life for their people thanks to abundant oil income. However, an increasing population makes the Middle East an attractive market. The population of Saudi Arabia has more than tripled from 9.8 million in 1981 to 31.54 million in 2015 (according to the Japanese Ministry of Foreign Affairs). In the following, we report on likely future trends of exports of fabrics for traditional ethnic wear and the movements of product development by Japanese manufacturers.