The Gulf region is a rapidly expanding market made up of consumers with high purchasing power. Increase of furniture demand is fuelled by economic growth, expanding population and rising investments in construction and services. Besides the residential segment, hospitality and infrastructures witness important growth. Two events of global relevance are scheduled in the area for the next future: 2020 World Expo taking place in Dubai (20 million of international visitors expected) and 2022 FIFA World Cup scheduled in Qatar.

1. COUNTRIES
Modern style is increasing its share,
although classic style still has a huge pres-
ence in the market. The shift to modern is
mainly driven by the preferences of young
people, travelling abroad and with increas-
ing purchasing power. Brand awareness is
also higher in this segment. On the other
hand, classic style is more appreciated by
aged (and wealthy) population, who con-
siders the classic or baroque style a true
expression of luxury. Lifestyle concepts
(eg. Fendi, Visionnaire) and individual
design items are more and more appreci-
ated.
Consumers are paying increasing atten-
tion to price. The purchase of furniture for
temporary housing by expatriates or by
contractor / real estate developers, who
provide furnished apartments and the
increasing quality of Chinese products,
make the low-budget option even more
attractive.
High-end products reach the market main-
ly through architects/interior designer
especially from the UK, France, Lebanon
and U.S., who act as consultants, estab-
lishing relationships of trust and advice.
Products are mostly distributed through
importers or retailers, who tend to be also
wholesalers, and often have their own
showroom (generally a multi-brand one)
inside major commercial areas and malls.
Architects and interior designers are again
the key actors in the contract furniture
market that, according to CSIL estimates,
accounts for about half of UAE total mar-
ket. It is worth noting the growing impor-
tance of turnkey projects, undertaken by
companies of fit-out that, in addition to
their main business, provide furniture for
interior furnishings (for example, to meet
www.worldfurnitureonline.com 11December 2014 - WF
STILL GOOD BUSINESS
OPPORTUNITIES
IN THE GULF REGION
by Alessandra Tracogna
CSIL Country Analysis and Forecasts
he Gulf region is a rapidly expand-
ing market made up of consumers
with high purchasing power.
Increase of furniture demand is
fuelled by economic growth, expanding
population and rising investments in con-
struction and services. Besides the resi-
dential segment, hospitality and infrastruc-
tures witness important growth. Two
events of global relevance are scheduled
in the area for the next future: 2020 World
Expo taking place in Dubai (20 million of
international visitors expected) and 2022
FIFA World Cup scheduled in Qatar.
A limited local production of furniture (how-
ever growing) and its strategic position,
make the UAE a net furniture importer and
the most open market in the region. The
United Arab Emirates are responsible for
around 40% of the total consumption of
the area with a furniture market worth US$
2.7 billion (at producer prices). UAE pop-
ulation is marked by a huge presence of
foreign residents (88%) of different nation-
alities and with heterogeneous income lev-
els. This makes the market quite fragment-
ed in terms of styles, tastes and budget
available for furniture consumption.
However, some common trends can be
drawn.
MARKET HIGHLIGHTS
Appreciation of luxury goods is confirmed.
This trend covers both the residential seg-
ment, with wealthier segments of the pop-
ulation exhibiting furniture as “status sym-
bol”, and the office sector, where execu-
tive and front furniture become more and
more luxury style. The hospitality sector,
mainly 4-5 star hotels, represents 71% of
the current supply.
T
the demand from the public sector hous-
es furnished to their employees).
The medium, medium-low market range is
covered mainly by large distributors, due
the large spread of Western-style large
shopping centers, such as Marina Home,
Pan Emirates, The One, Royal Furniture,
Homes r US, ID Design, Home Centre,
the latter the most important local retailer.
Among high-income countries, Italy has
always been a leading furniture exporter.
The strong Italian presence in the UAE
market was underlined by 34 interior
designers and design studios participat-
ing in the third edition of ‘Italian Luxury
Interior’ in Dubai, last November. Keeping
apart the share of China (over 60% of the
local market), the competition among tra-
ditional exporters has intensified.
WHERE TO BUY ITALIAN
The Italian business presence in the UAE
is growing and strategies tend to adapt to
this context. Usually Italian companies
refer to local distributors. Companies like
Nordwall International srl, Archiutti spa,
Ora Acciaio, Sinetica Industries,
StyleOffice and Unifor, specializing in the
office / contract segment, distribute their
products through local showrooms in the
Emirates of Dubai, Abu Dhabi and Sharjah.
Manufacturers of office furniture and
upholstery like Emmegi, Infiniti by OMP srl,
Line Kit spa, Modula srl, Living Divani,
Moroso and Manerba sell their products
through local distributors.
For companies like Moroso, a close rela-
tionship with interior designer/architectur-
al studios is crucial. Other Italian compa-
nies using this channel are: Pedini spa,
Alea Srl, Della Rovere SpA, Dall’Agnese,

2. 12 WF - December 2014 www.worldfurnitureonline.com
COUNTRIES
WANT TO KNOW MORE?
The ‘GCC Furniture Outlook’ report (published by CSIL in December 2014) offers an
overview of the local furniture market, across the region and for individual GCC
countries: Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and United Arab Emirates.
Data on production, consumption, imports and exports are provided, as well as
forecast, macroeconomic and business climate indicators, maps and detailed trade
statistics. A qualitative analysis on styles, tastes and distribution channels is conducted
thanks to interviews to leading players of the furniture market. Short profiles of furniture
market key players are also included.
The report is available to purchase and immediate download at:
www.worldfurnitureonline.com
Altek Italia design srl, Linea Beta spa, Silk
spa, Gatto spa Carpanelli spa, Meco Srl,
Milldue Arredi spa, Gold Confort L’Origine
spa, Dieffebi spa, Estel spa, Office & co
srl, Upper spa, Sagsa spa.
Not many Italian companies have own
showrooms in the area (in joint
venture/partnership with local operators).
Selva Middle East opened its second
showroom of 800 sqm in Dubai, dedicated
to Italian furnishings and accessories of
high quality. Saporiti Italia spa opened its
own showroom of 400 sqm and office in
Dubai, connected with Saporiti Hub and
with the Italian R&D center. Arrex has a
kitchen showroom in Dubai. In
February 2014, Arper opened a
showroom in Dubai as well.
Poltrona Frau Group (including
brands Cassina and Cappellini)
in partnership with Mubadala, a
leading business development
and investment company based
in Abu Dhabi, created PF
Emirates, and opened two
showrooms in Abu Dhabi e
Dubai. Among Italian compa-
nies present in the market with
branches, showrooms and/or
representative offices, there are
Natuzzi, Snaidero, and Uno
Contract.
The market share of Italian furni-
ture in UAE is about 8% and it is
constant over time, thus demon-
strating the general recognition
and appreciation of the Italian
furniture industry in the region.
VIETNAM FURNITURE CONSUMPTION, 2003-2013
Source: Processing CSIL
UAE. FURNITURE IMPORTS FROM TOP 4 HIGH INCOME COUNTRIES
2005-2013. (2005=100)
Italy USA Germany UK

3. About Us
WORLD FURNITURE - International Market Review
World Furniture – International Market Review is a quarterly
review of economic information and market analysis. This magazine
offers contributions on international furniture and furnishing
markets, demand and supply, retail and consumption, business
trade country profiles competitive systems international eventstrade, country profiles, competitive systems, international events,
fairs and exhibitions.
Print issue is mailed to a selected target of 2000 manufacturers and
suppliers in the world's main producing, exporting and consuming
countries. World Furniture is also circulated at major international
sector fairs.
World Furniture – International Market Review is published by
CSIL, Centre for Industrial Study, an independent research and
consulting company specialized in applied economic research,
EDITORIAL
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No. 65/March 2015
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No. 66/June 2015
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No. 67/September 2015
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