UAE housing boom to drive wood market growth
With over 25,000 homes being added to the UAE’s residential market this year, the wood and furniture market is likely to witness solid growth.
Wood and wood products are expected to get a solid boost from the $2.4-trillion worth of construction activities, especially when new home-owners start purchasing furniture and interior décor accessories, industry experts say.
In the Middle East, 70 per cent of timber and wood products are used in construction; the rest are used in real estate, interiors, furniture and other industrial applications.
With an average spend of $2,722 on wooden products per home, this translates to $68 million spent this year in Dubai alone.
However, with more than 35,000 residential units slated for delivery in 2018, spend on wooden products is expected to jump 40 per cent to $95 million, according to a report released of ahead of the Dubai WoodShow.
"The growth in the housing market will drive the wood, wood-related and timber business across the region and this creates a great opportunity for the industry," said Dawood Al Shezawi, CEO of Strategic Marketing and Exhibitions, the event organiser.
"As families move into their new homes, they will require a fresh supply of furniture. Most families will look for authentic wooden furniture and products – wherein lies the new demand."
Al Shezawi said in order to capture the lucrative UAE market, more than 300 exhibitors from 100 countries are all set to showcase their innovative solutions at the next edition of Dubai WoodShow, which will showcase new designs, style and product innovation on managing home space in innovative ways.
The demand for wood products is also expected to be driven by new hotel projects.
"Dubai will add 40,000 hotel rooms and service apartments to meet the growing demand of tourists as part of the build-up to the Expo 2020, which is less than three years away," stated Al Shezawi.
Dubai’s hotel sector has more than 100,000 hotel rooms and serviced apartments. By October 2020, Dubai will need to have a strong hotel inventory of 140,000 hotel rooms and hotel apartments.
“As we speak, a number of hotel operators are floating tenders for wooden beds, tables, and wooden interior products to offer greater comfort to hotel guests. This is going to be a great driver of demand for wooden products,” he added.
The Dubai WoodShow will be held from March 12 to 14, 2018, at the Dubai World Trade Centre.