Supply Chain and Sustainability

In recent years, there has been a global emphasis on sustainable fashion owing to the escalating environmental impact of the fashion industry. The manufacturing and disposal of clothing contribute substantially to greenhouse gas emissions, water pollution, and the depletion of natural resources. Sustainable fashion practices strive to tackle these challenges by advocating for environmentally responsible and socially ethical approaches to the production, distribution, and consumption of clothing.

The UAE is currently witnessing rapid economic growth and is making notable strides in promoting sustainable fashion practices. Recognising the vital role of sustainability in the fashion industry, various stakeholders in the UAE, including the Government, fashion brands, designers, and consumers, are actively contributing to this movement.

The UAE Government has instituted policies and initiatives to foster sustainable fashion practices. A noteworthy example is the Dubai Design District (D3), which introduced the Dubai Sustainable Fashion Pact in 2020; a forward example to advancing sustainable practices within the fashion industry.

International fashion brands and designers with branches or stores in the UAE are actively striving to integrate sustainable practices into their operations. Global names like H&M and Gucci have introduced sustainable collections and initiatives within the UAE. Simultaneously, local designers such as, The Giving Movement, are embracing sustainability by incorporating eco-friendly materials and practices into their collections, such as the utilisation of organic cotton like plant-based fibres and the upcycling of materials.

UAE’s luxury fashion powerhouse, Chalhoub Group are making strides to achieve net-zero emissions across all platforms by 2040 in accordance with the local and global objectives. Their 2022 sustainability report outlines the Groups commitment to working with suppliers and partners to ensure the application of ethical and transparent business practices. Consumers in the UAE are exhibiting a growing awareness of the environmental impact of their clothing choices and are expressing an interest in more sustainable options. In response to this shift in attitude, retailers are introducing sustainable clothing lines and actively educating consumers about sustainable fashion practices.

Despite the increasing awareness and demand for sustainable fashion practices, the UAE encounters various challenges in this realm:

Limited Awareness and Education: A significant challenge currently faced by the UAE in promoting sustainable fashion is a lack of awareness and education among consumers and fashion industry professionals. According to a recent study, 2/3rd participants knew that eco-friendliness relates to the environment and the conservation of natural resources, but their understanding was vague and limited and they were not able to draw the correlation between clothing and its impact on the environment. This indicates a significant gap in education and awareness.

Limited Government Regulations: Currently, there is no specific legislation in the UAE that regulates sustainable fashion practices. This makes it challenging to enforce sustainable fashion practices across the industry. However, the introduction of the Arab Fashion Council (‘AFC’) in 2015 has since established the AFC GREEN LABEL, this initiative promotes sustainability and responsible practices within the fashion industry. A forward approach for the UAE in developing sustainability regulations.

Ethical Fashion in Dubai: Legal Considerations

The concept of ethical fashion draws attention to fair labour practices and the provision of safe working conditions. UAE’s Labour Laws, which encompass aspects such as working hours, minimum wage, and employee rights ultimately contribute to the overall ethical environment within the fashion industry. Brands and manufacturers are required to comply with these regulations to safeguard the welfare of their workforce.

Under the UAE Labour Laws, an employer is obligated to provide their employees with a safe and appropriate working environment, the employer is prohibited from instructing forced labour and the employee is not to exceed the maximum normal working hours of eight (8) hours per day.7 These laws provide safeguarding to employees and ensure they are not exploited, and any violations by the employer can result in serious fines and penalties.

Human Rights and Supply Chain Transparency: The UAE has ratified nine major international agreements concerning human rights and labour rights. Fashion brands are now mandated to maintain transparency in their supply chains, to ensure that their products are not produced through exploitative methods or child labour practices. Under the UAE Human Rights Law, the National Human Rights Authority, closely monitors any violations of these laws to report to the Competent Authority.Adhering to these regulations contributes to the ethical reputation of fashion businesses.

Consumer Protection Laws: The UAE has consumer protection laws in place to safeguard the rights of buyers. These laws include provisions related to accurate information, product labelling, and quality standards. Ethical fashion brands are required to uphold these regulations, ensuring they provide truthful and accurate information about their products to consumers.

Initiatives for Promoting Sustainable and Ethical Fashion

Dubai Fashion Sustainability Pledge: Aligned with Dubai’s dedication to sustainability, this initiative was introduced by the Dubai Design and Fashion Council. With 131 signatories already received, fashion brands throughout the UAE are pledging their commitment to incorporating sustainable practices across the entirety of their operations, design, production, distribution, and retail.

Sustainable Platforms and Events: Events like the Dubai Sustainable Fashion Week actively promote ethical and sustainable fashion. These platforms offer designers, brands, and stakeholders an opportunity to present their eco-friendly initiatives and products, contributing to fostering awareness and collaborative efforts.

Cop28 Dubai 2023: The UAE’s ongoing commitment to combat climate change and uphold sustainability is exemplified by its recent pledge at Cop28. During this summit, the UAE pledged $200 million to support low-income and vulnerable nations in their efforts to address the challenges of climate change. Furthermore, this year’s summit introduced the inaugural fashion show at COP showcasing creations distinct from the typical ‘trash-to-fashion’ displays. Instead, the showcased creations were both wearable and accessible to everyone, a collaborative effort by brands with a shared commitment to achieve their initial goal: climate change and sustainability in the industry.

Intellectual Property Protection

The protection of intellectual property (‘IP’) is paramount in the rapidly growing fashion industry of the UAE. In 2021, Dubai customs claimed 390 IP seizures that accounted for approximately 1.7 million counterfeit items.

To address these unethical activities, Dubai now classifies counterfeiting and any attempt to replicate a registered product as forms of Economic Fraud. Breaching this law may subject the offender to fines and, in more severe cases, the potential revocation of the business trading licence, emphasising the serious consequences for any infringement. These enforcement efforts aim to deter IP violations and protect the rights of IP owners.

The UAE remains steadfast in its commitment to regularly enhance its IP laws, aligning them with international standards and adopting best practices. Some of the recent developments in IP law in the UAE include:

Implementation of Gulf Cooperation Council (GCC) Unified Trademark Law: This initiative seeks to standardise trademark registration and protection procedures among member states. The law simplifies the trademark registration process and provides enhanced protection to trademarks within the GCC region.

Amendments to Copyright Law: In 2020, the UAE implemented amendments to its Copyright Law. The amendments include provisions addressing online copyright infringement, digital rights management, and penalties associated with violations of copyright.16 Further enhancing the safeguarding of IP rights in the UAE, in the era of digital advancements.

Accession to International IP Treaties: The UAE has acceded to various international intellectual property treaties, such as the Berne Convention for the Protection of Literary and Artistic Works. As a result, the rights of authors’ original works in the UAE are acknowledged and safeguarded via this uniform system in all nations that are signatories to the Berne Convention.17 This underscores the UAE’s dedication to upholding international IP standards and offers increased protection for rights holders in the country.

Conclusion: Future Trends and Regulations

The UAE’s $89 billion fashion industry is set for change in the coming years driven by a combination of factors ranging from evolving consumer behaviours to new government investment policies.

In Europe and the United States, where many big fashion companies are based, governments are introducing new laws and regulations that bring about a comprehensive transformation of the industry. These measures encompass strict supply chain specifications, comprehensive disclosure in reporting emissions, strict criteria for designating products as sustainable, and initiatives aimed at encouraging more conscientious business models.

In November 2022, New York revised the Fashion Sustainability and Social Accountability Act, imposing accountability for environmental and social standards on fashion sellers operating in New York with an annual revenue exceeding $100 million worldwide.

Similarly, the European Union (EU) has initiated the European Green Deal, an innovative plan to reshape Europe into a more climate-neutral and sustainable economy.

UAE fashion companies will need to keep up with the evolving laws and regulations and adapt their business strategies to ensure compliance and stay ahead of the sustainability curve. The rise in sustainability regulations pose both challenges and offer opportunities for the fashion sector in the UAE.

Adhering to these regulations necessitates a shift towards the use of sustainable materials, achieving carbon neutrality, prioritising social responsibility, raising consumer awareness and ensuring strict adherence to policies and regulations.

The UAE will no doubt meet the challenges that lie ahead as it positions itself in the global market as a hub for international fashion with a commitment to ethical and sustainable practices which certainly will be underpinned with regulation and law as the industry further evolves.

SOL International Ltd undertakes work in all aspects of Fashion Law. The CEO is appointed on the Fashion Law Arabia Council and holds a Certificate with Merit in Fashion Law from the Milan Fashion Law Associate. SOL plans to hold a round table on the issues discussed in this Article at a Milan Legal Week in June 2024 and are involved both in the UAE, KSA and Africa in fashion legal events in 2024.