Furniture trade in Dubai booms

In the Middle East the Dubai furniture trade is now considered to be one of the largest markets in the region. This has mainly been due to population explosion, and the increase in wealth in the area. This has allowed positive growth in the region as people want to buy fashionable furniture and make them show off their wealth. The UAE'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, &0% Imports, 25% re-exports and only 5% Exports.

The 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% from 2000 to 2005 with 205,500 units. And certain types of properties have boom, with villas increased by almost 100 per cent, while flats increased by 48 per cent during the same period.

This large increase in residential housing units has helped spur on this booming furniture trade, which has allowed for more and more furniture retailers. The year 2006 accounts for 2,965 furniture companies; of which 82.5% are traders and 17.5% are manufacturers.

There is a positive correlation between increased housing and furniture market. As Dubai grows, with its increased tourism and financial business, this correlation looks set to continue to benefit the furniture market.

With an expected population growth rate off 7%, the furniture market can expect great growth in Dubai, especially with the $143 billion in real estate projects looking to be spread out across the country.

Information from: www.wadi.ae