Dubai's furniture trade at Dh 2.7 bn

Dubai furniture market is now considered to be one of the largest markets in the region, thanks to the population explosion which has a positive ripple effect on the furniture market. The Emirate’s furniture products are either locally manufactured or imported and the market offers a variety of products; however the most traded products are home, office, school and hospital furniture.

In 2005, Dubai’s total furniture foreign trade amounted to Dh 2.7 billion, of which 70 per cent were imports, 25 per cent re-exports and only 5 per cent were exports, said a Dubai Chamber of Commerce and Industry (DCCI) report.

The comprehensive Dubai statistical survey of 2000 and the Ministry of Economy census of 2005 indicated that the total number of housing units has increased by 41.4 per cent from 145,4000 units in 2000 to 205,5000 units in 2005. With respect to residential properties, villas increased by almost 100 per cent, while flats increased by 48 per cent during the same period.

The increase in housing units fuelled the demand for furniture, which in turn led to the entry of more and more furniture companies into the furniture manufacturing sector. The year 2006 accounts for 2,965 furniture companies; of which 82.5 per cent are traders and 17.5 per cent are manufacturers. Approximately, 44 per cent of furniture traders are actively involved in home, 31 per cent in office, 21 per cent in domestic kitchen, and the remaining in schools, hospitals and laboratory furnishings. Where as, among the manufacturers about 34 per cent manufacture home furnishings, 25 per cent kitchen and cabinet furnishings, 25 per cent office furnishings, 6 per cent school furnishings and 10 per cent shop fixtures, the report said.

The positive correlation between the real estate and the furniture market indicate that as the former grows the latter will follow suit.

Based on the above and given the planned real estate projects of about $ 143 billions spread out all over the country, in addition to estimated population growth rate of 7 per cent, the furniture market has great potential growth. These high expectations could considerably boost the development of small and medium size establishments. Further, it will be a key player in opening up new opportunities for investors, thereby improving quality of production and making it viable for local businesses to successfully compete in GCC and regional markets, the study said.

Information from: www.wadi.ae