Manufacture of textiles

2 activity groups

Qualifying · 0% eligible

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

The manufacture of textiles is classified as a Qualifying Activity. Forensic auditors will verify the 'substantial transformation' of raw fibers or yarns into fabrics/garments. If the activity is deemed mere 'trading' or 'distribution' without physical manufacturing substance, the income may be re-characterized as non-qualifying if the counterparty is not a Qualifying Free Zone Person.

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Legal Reference

Article 2, Clause 1(a) of Ministerial Decision No. 229 of 2025

Audit Red Flag

Re-invoicing of finished textile goods manufactured by a third-party in Mainland UAE or overseas without 'substantial transformation' occurring within the Free Zone entity.

Browse activity groups

ISIC 131

Qualifying · 0% eligible

Spinning, weaving and finishing of textiles

5 licensable activities

DZ required

ISIC 139

Qualifying · 0% eligible

Manufacture of other textiles

17 licensable activities

DZ required

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