Ala Mairi is based around a mix between Scottish hand loom weaving techniques and hand sewing and silk dying from Pakistan.
Much of the fabric is hand- made in Scotland before embroidery and other materials are added in Pakistan with around 50 people working on the designs across both countries.
The social enterprise also plans to plough the profits it makes from selling £500 dresses back into projects ranging from women's shelters to replacing equipment for the craftspeople it uses.
Its Edinburgh-based founder Fatima Mahmood believes the venture can carve a niche in the fashion world and is delighted with how the first collection has turned out.
She said: "It is high-end ethical fashion. We are commissioning our hand loom weavers in Scotland [and] these are not mass produced things from a factory.
"They are art pieces with limited editions of five to seven of each piece which people can order and then we will make them to measure so we don't have any wastage."
According to Ms Mahmood interest in the brand is already building.
She said: "Hopefully some high-end boutiques would like to stock us and we are ready for that as well.
"We are thinking of London and there is one boutique in New York which is taking a lot of interest.
"Ethical luxury fashion is getting a lot of interest. People like celebrities and others who can afford these pieces really cherish them as they know where they have come from."
The company was selected for the Cultural Enterprise Office's Starter for Six programme in 2012.
Ms Mahmood said: "It really helped me to see where I am going with the brand and its marketing. The Cultural Enterprise Office has helped me to realise there is a good story here to tell. I was a more shy person before but I am coming out of my shell now."
Ms Mahmood had previously helped run a greengrocer retail business in Edinburgh with her husband.
When they sold that in 2004 she then went to Telford College to study fashion and textiles while also helping the family run another retail business on Dundas Street in Edinburgh.
She has been researching Ala Mairi for three years and has met with dozens of craft people in Pakistan and across Scotland and is determined to put something back into those communities.
Ms Mahmood said: "I think the future is very bright. Once we see the profit, we want to see how we can support these women in Rawalpindi and Islamabad and Pakistan but also in Scotland.
"For instance if our weavers need a new loom or piece of equipment they can come to us. We want this brand to have a real community feel."
Ms Mahmood also confirmed a range of scarves, with prices starting at £80, is now in development.