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We Made Our Own Supply Chain: Direct Sourcing from China for UAE Importers

The closure of the Strait of Hormuz has forced UAE businesses to rethink how goods reach the country. In a report published on 9 October 2026, The National described how food retailers and producers adapted, and one quote stood out. "We are not waiting for this [situation] to get corrected. We made our own supply chain," said Shamin Sainulabdeen, director of private labels at Lulu Group International.

Most SME importers can't charter a ship. But the same principles work for a business buying one container, or part of one: buy closer to the source, control the shipment and plan for longer lead times. This guide shows how to apply them to direct sourcing from China for the UAE.

What UAE retailers changed after the Hormuz closure

According to The National's report, about 80 per cent of food in the UAE is imported, and during the conflict, products imported by sea could take up to 70 days to arrive, a serious problem for anything with a short shelf life.

Companies responded in different ways:

Lulu Group International stopped relying on shared shipments. It now charters entire vessels exclusively for its own cargo from India, Thailand, China, Indonesia, Spain, Turkey and Italy. "Usually it was going from different manufacturers before, but nowadays we take the initiative to bring all the shipments together and charter vessels exclusively for us," Mr Sainulabdeen said.
Lulu has also shifted its focus to finding products in Asian markets that are similar to those it typically sourced from Europe and North America.
United Foods, which makes oils and ghee, placed orders for raw materials several months in advance. When it receives items in bulk, its stock lasts for up to five months.

Freight costs have risen too. As reported by Shipping Arabia, citing the UAE's National Shipping and Logistics Committee, container transport and related logistics costs serving the UAE have risen around three to five times. Base ocean freight has not risen by the same percentage; the increase comes from costs that pile up along the chain: war risk surcharges, emergency and fuel surcharges, higher inland transport costs and extra clearance charges. Some cargo has been discharged at Khor Fakkan, Fujairah, Sohar or Salalah and then moved overland to destinations including Jebel Ali. Space is also tight, with some sailings full or cancelled and bookings rolled to later vessels.

Three lessons for SME importers

1. Buy direct, with fewer layers in between

Every intermediary adds margin, time and another place where information can get lost. When freight already costs more and takes longer, that matters more. Buying directly from the manufacturer gives you clearer pricing, control over specifications and faster answers when something changes.

2. Control how your goods are grouped and shipped

Lulu brought shipments from different manufacturers together under its own control. An SME can do the same on a smaller scale: instead of several suppliers each shipping small lots on their own schedules, consolidate the goods in China and ship them as one planned load.

3. Plan for time, not just price

United Foods booked months ahead. Treat lead time and buffer stock as part of the buying decision, not something to fix after the goods are late.

How to find and verify Chinese suppliers

Direct sourcing only works if the supplier is real and capable. Before you pay a deposit:

Confirm who actually makes your product. Many online listings are trading companies.
Check the business licence and registered scope against the products you are ordering.
Ask for production evidence: factory photos or video, equipment lists and samples of comparable work.
Review export experience and relevant product certificates.
Consider a factory audit for larger or repeat orders.

GulfCN's supplier verification in China and factory audit services are designed for this stage.

Quality control before shipment

When shipping takes longer and costs more, a defective batch is far more expensive to fix. Inspection before the goods leave China is essential:

Agree a written specification and an approved sample before production starts.
Use production monitoring for longer or more complex orders.
Run a pre-shipment inspection on quantity, workmanship, function, packaging and labelling.
Check carton marks, weights and package counts, because these feed your shipping documents.
Release the balance payment only after the inspection results are accepted.

See how GulfCN approaches quality control in China.

Consolidation: full container or shared?

Lulu's shift from shared shipments to dedicated vessels has a direct parallel for smaller buyers: FCL vs LCL.

LCL (shared container) suits small volumes, but your cargo depends on other shippers and gets extra handling.
FCL (full container) gives you more control over timing and handling once your volume can fill a container.
Consolidating your own suppliers is the middle path. You collect goods from several Chinese factories in one place, check them, and ship them together, often as a single FCL.

When space on Gulf-bound vessels is tight, one planned, well-documented container is usually easier to manage than several small consignments. Ask your forwarder to compare both options on your lane.

Lead times and landed cost with surcharges

Don't plan with the freight rate you were quoted before the disruption. Build your landed cost from:

Product price and payment terms
Inspection and any re-work allowance
Ocean freight plus war risk, emergency and fuel surcharges, which vary by carrier
Possible discharge at an alternative port and the overland leg to your warehouse
Customs clearance and local delivery

For timing, work back from the date you need the goods in the UAE, allowing for production, inspection, consolidation and a sea transit that may be much longer than normal. Ask for quotes that state which surcharges are included and how long they are valid.

Buffer stock

United Foods holds up to five months of stock on bulk materials. Your level depends on cash flow, storage and shelf life, but the principle holds: order fast-moving and critical items earlier than before.

Direct sourcing checklist for UAE importers

List the products where an intermediary adds cost but no value.
Shortlist manufacturers in China, and consider Asian alternatives for products you currently buy from Europe or North America.
Verify each supplier's licence, scope, production capacity and export experience.
Approve samples and a written specification before paying a deposit.
Schedule a pre-shipment inspection and link the final payment to it.
Decide on LCL, FCL or consolidation from multiple suppliers.
Get freight quotes that list every surcharge and the possible alternative discharge ports.
Calculate landed cost with today's surcharges, not old rates.
Work back from your UAE need-by date with a realistic transit time.
Set buffer stock levels for critical items.

Frequently asked questions

Why are UAE retailers moving to direct sourcing?

After the Strait of Hormuz closure, sea imports could take up to 70 days. Retailers such as Lulu Group International responded by chartering their own vessels instead of using shared shipments, and by sourcing more from Asian markets.

Can a small business source directly from China?

Yes. Small importers can buy directly from verified manufacturers, inspect goods before shipment and consolidate orders from several suppliers into one shipment.

How much have shipping costs to the UAE increased?

According to the UAE's National Shipping and Logistics Committee, as reported by Shipping Arabia, container transport and related logistics costs have risen around three to five times. This comes mainly from surcharges, alternative routings and inland transport, not from base ocean freight alone.

Is FCL or LCL better for shipping from China to the UAE?

It depends on volume. LCL suits small loads. FCL gives more control over timing and handling. Consolidating goods from several suppliers into one container can combine the benefits of both.

How much buffer stock should I hold?

It depends on shelf life, storage and cash flow. As one example, United Foods told The National that its bulk stock lasts for up to five months.

How GulfCN helps

GulfCN is a Dubai B2B company based in Meydan that helps UAE and Gulf businesses source from China. We handle supplier search and verification, quality control and inspection, consolidation of goods from multiple suppliers, and shipping to the UAE via Jebel Ali. Read more about importing from China to the UAE or see our project cases.

Planning a direct order from China? Send us your request through the contact form with your product, specification or supplier details, and GulfCN will respond within 1–3 working days.