The European

Penetration into the

Middle East Furniture

Industry

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The furniture industry of the Middle East has been booming for the past

decade, partly because of the strategic position of the Gulf. The success has

been so strong that many of the states in the region have managed to

withstand the effects of the 2008

global financial crisis, and now

are on economic upswings.

The Rising Gulf

The United Arab Emirates, for

example, acts as a furniture

mediator through its strategy of

importing foreign products, and

exporting them to its

neighbours. Saudi Arabia and Qatar, meanwhile, are in the middle of

impressive periods of retail growth as real estate developers continue to

invest in the countries. A bigger housing industry means a more robust

demand for furniture to fill residential properties.

Because of the high profile of the region, the Gulf States are now prime

targets for both European and Asian manufacturers. Recent data, however,

suggest that Europe may be gaining the upper hand in the fight for the Gulf,

as their Asian counterparts are focusing on its continuing “invasion” of

American markets. This allows already physically closer states such as

Germany to penetrate deeper into

the Middle Eastern consciousness.

The Rising European Demand

According to data detailing the

growth of European influence in

the Gulf market, tracking the

industry values, percentages, and

shares from 2003 to 2012, there’s

been substantial movement in every area. In 2003, the European furniture

exports were at just under 452 million Euros, a number that ballooned to

below 938 million Euros in 2012. Likewise, the average annual growth of the

Middle Eastern furniture market was at 8.5, based on the sum of the data,

the second largest next to Africa.

These numbers prove that the Gulf

presents the most lucrative

opportunity for European furniture

service providers and manufacturers

to export and ply their trade. Africa

may have a larger annual growth

rate and export value. But the

instability in several countries in the

continent, as well as the fragile

security of the unaffected states,

leaves a lot to be desired before it can become a true destination for

business exports.

The trajectory is clear, and the data support the hypothesis. The European

furniture industry is growing in influence in the Middle East.

SOURCES:

http://ec.europa.eu/growth/tools-

databases/newsroom/cf/itemdetail.cfm?item_id=7918&lang=en&title=Study

-on-the-EU-furniture-market-situation-and-a-possible-furniture-products-

initiative-

http://www.goettling.me/

http://www.academia.edu/1502656/The_consumer_perception_of_design.C

ase_study_furniture_sector