Summary

The UAE luxury furniture market is estimated to grow at a CAGR of approximately 2.5% during the forecast period.

Key Highlights
The furniture market in UAE region is highly competitive owing to the rising demand of furniture and furnishing products. This rise in demand has led to the growing domestic demand and emergence of multiple players catering to the same target audience for luxury furniture products.
Manufacturers and retailers operating in the region compete on almost same grounds of quality of the product and the material used to manufacture the product.
Imports play a major role in the UAE luxury furniture market, the penetration of Italian made luxury furniture is high among the consumers in the region. Major Italian furniture manufacturers have been providing their products in the country either through their own showrooms or multi-brand retail stores.
The rising construction and real estate sector in the country plays a major role in driving the demand for finished luxury furniture products for the next few years. Also, the governments’ initiatives to develop tourism and hospitality industry which is estimated to contribute approximately 12% of the country’s GDP is also expected to play a major role in UAE luxury furniture market over the forecast period.


Key Market Trends

Growth of Real Estate Sector


In UAE alone 55,000 homes and 40,000 new hotel rooms were constructed in 2017. It has been observed that 70% of the timber and wood products are used for construction purposes while the remaining 30% is used in real estate, interiors, furniture and other industry applications.
The demand for furniture is likely to go up in the near future as Dubai will add 40,000 new hotel rooms and service apartments to meet the growing demand of tourists following the "Expo 2020" in Dubai, which is for a period of 1 year from 2020 to 2021.


Changing consumer preferences towards luxury goods


With more than 90% of the population residing in urban areas and the rising disposable income per capita, the preference for luxury products is high among the consumers in UAE. Abu dhabi and Dubai account for more than 50% of the over all population in the country.
The UAE is a ready-made market for luxury brands – tourism, combined with a wealthy population, are big drivers for the sector.
Dubai alone accounts for 30% of the Middle East’s luxury market. One study found that UAE citizens spend around 30% of their monthly salaries on luxury goods.
The UAE was recently eighth in a list of countries whose consumers are trading up from mid-market brands. Established international brands have more advantage, as foreign products account for 58% of all UAE purchases.


Competitive Landscape

The report covers the major players operating in the UAE luxury furniture market. The market is comprised both manufacturers and distributors. However, distributors that import products from other countries have been dominant in the market. In terms of market share, the companies in the region compete heavily among each other through innovation and creativity to meet the dynamic behavior of the consumers in the region.

Additional Benefits:

The market estimate (ME) sheet in Excel format
3 months of analyst support

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