"The ongoing construction boom across all countries in the Gulf has obviously created a spike in demand for carpets and various other floor coverings," said Angela Schaschen, Managing Director, Deutsche Messe Dubai Branch, to Gulf Today.
Angela, the organiser of Domotex Middle East, a carpet and floor coverings event, said the projected 23 per cent yearly growth of hotel and service apartment sector in the Gulf region will boost demand for carpets and floor coverings
In the GCC alone, a compound annual growth rate of 23 per cent is expected among hotel and serviced apartment projects until 2010, said a study by TRI Hospitality Consulting. This translates to over 77,872 new rooms expected to enter the GCC accommodation market by the end of 2010, i0ncreasing the room supply by 86 per cent in just three years.
"This huge new supply of hotels and serviced apartments will accordingly require an ample quantity of quality carpets and floor coverings. We are now feeling the impact of this remarkable new development as there are already almost 200 hotel projects in the GCC being announced, representing over 40,000 new rooms that need carpet furnishing and other flooring products. This certainly points to the strength and potential of the regional market," Schaschen said.
Aside from confirmed projects included in TRI’s research, several more projects that have yet to be confirmed were not included in the study. With the inclusion of these non-confirmed hotel projects, the additional supply would further increase by up to 25 per cent, bringing the total additional rooms to over 100,000 by the end of 2010.
The UAE economy growth is 16 per cent and the construction boom is nearly 10 per cent. Therefore we predict a growth of approximately 20 per cent in flooring. Refurbishing is also an important growth factor next to the new construction. In the UAE, construction is the third largest sector of the economy, after oil and trade. The construction industry contributed about 7.05 per cent in 2006 to the UAE’s GDP with a valued at $ 11.10 billion. The growth rate of the construction sector is expected to be 6.8 per cent on average for 2007-2010, (source: US Commercial Services, UAE)).
In view of the region’s remarkable market prospects, Domotex Middle East, a carpet and flooring event that will be held at the Dubai International Convention and Exhibition Centre from May 25-27, 2008 will display a broad range of flooring from wood, laminate to hand-made carpets to machine made carpets.
Domotex has been earmarked by global players as an ideal platform to promote and distribute various world-class products, as well as establish networks and ultimately establish a strong presence in the lucrative Gulf market. The US National Wood Flooring Association (NWFA) plus American Hardwood Export Council (AHEC), the new entrant pavilion at Domotex will have approximately eight American suppliers of wood. From experience, the Domotex event is expected to attract 6,326 business visitors.
Moreover, holding Domotex Middle East in the UAE likewise delivers strategic benefits to various exhibitors and visitors of the exhibition as the country is currently the single largest hotel market in the GCC, accounting for a remarkable 73 per cent of the future total supply in the GCC. Participants can further optimise their participation as nearly 70 per cent of the UAE’s total projects are located in Dubai, the primary host of the global networking event.
American wood
The AHEC states that many species of American hardwood catching the attention of Middle East designers are already popular in Europe. It is foreseen that 2007 and beyond will be a very significant year for exports of US hardwood to the Middle East and North Africa, as the region continues to show unprecedented growth in the construction sector, as well as positive developments in the furniture and interiors sectors, particularly in Egypt, the UAE and other Gulf states.
American hardwood including tulipwood is gaining popularity in the Middle East as the total value of all US hardwood exports to the region reached over $ 13 million during the first three months of 2007, a 24.4 per cent increase on the corresponding period in 2006.
In terms of American hardwood lumber, shipments to all of the region’s countries were up during the period, except for Saudi Arabia, which continues to show a downturn in its overall demand for hardwood lumber — albeit a slowing one. Exports to the UAE increased by 32.5 per cent and reached a volume of 2,275 cu m, while to Jordan they rose by 128.8 per cent to 1,050 cu m and to Egypt by 10.3 per cent to 698 cu m, according to the American Hardwood Export Council (AHEC).
As for the species of US hardwood lumber exported to the region during January to March period of this year, has been a significant upturn in shipments of red oak, which accounted for some 37.1 per cent of total exports. At the same time, exports of ash, maple (hard and soft), cherry, tulipwood and walnut also increased, with tulipwood, in particular, becoming more significant as an imported US species in the Middle East.
Furthermore, with so much of what the UAE imports (as much as 30 per cent) earmarked for re-export, the UAE is fast developing into a trading hub for wood products for the entire Middle East region and beyond to East Africa, South Asia and even Central Asia.
As demand in these countries also picks up, it is likely that the UAE will develop further into a focal point for wood products and wood processing in general and imports of high-value hardwoods, such as those from the US, will continue to grow.
