GCC Interior Contracting and Fit-out Market grows 87% in 2012; Sector Value highest since 2008 at US$9.4bn
UAE remains GCC’s market leader in interior contracting and fit-out market for both residential and commercial sectors at US$3.73bn – but KSA catching up fast with-year-on-year growth of 125% forecast, up from US$1.55bn in 2011 to US$3.48bn in 2012.
Interior contracting and fit-out across residential, hospitality, commercial and retail sectors all show significant growth in 2012; retail spend more than trebles as more mall space comes online.
Kuwait clocks highest annual market growth – up 165% on 2011 figures, led by retail sector; Oman’s interior contracting and fit-out market also up 125% year-on-year, Qatar up 91% while Bahrain remains static.
The overall GCC interior contracting and fit-out market will increase by 87 per cent in value this year, the highest increase since 2008, from US$5.04bn in 2011 to US$9.4bn, according to new research by Ventures ME commissioned by dmg :: events, the organising team behind the INDEX International Design Exhibition, the Middle East and North Africa’s largest and longest established Interiors and Design Exhibition. The 22nd annual edition of INDEX will run from Monday 24th September 2012 till Thursday 27th September at the Dubai World Trade Centre, Dubai, UAE.
Data released today show that the United Arab Emirates remains the GCC’s largest interiors market, with forecast spend in interior contracting and fit-out across residential, commercial, hospitality and retail segments totalling US$3.73bn for 2012, up 62 per cent on 2011 figures. Despite this strong growth, the UAE’s dominance is now being challenged, with Saudi Arabia’s interiors and fit-out sector growing twice as quickly over the year and more than doubling in value; up 125%, from US$1.55bn to US$3.48bn, and buoyed by significant government investment in housing, healthcare, education and other infrastructure projects.
The interiors sector in Qatar and Oman also records significant growth for the year, up 91 per cent to US$1.15bn and 125 per cent to US$0.27bn in 2012 respectively; but it is Kuwait which records the highest GCC market growth, from US$0.19bn in 2011 to US$0.65bn in 2012 – a rise of 242 per cent. This is spurred largely by the retail segment, as Phase III of the Avenues mall nears completion, and sees Kuwait clock the highest retail fit-out spend in the GCC for 2012.
Bahrain was the only GCC market not to record any growth, remaining flat at a forecast value of US$0.28bn.
Fit out and interiors spend across all segments in 2012 – residential, commercial, hospitality and retail – show significant growth from 2011 figures. The GCC’s residential segment still accounts for the largest spend on interiors, set to increase in value from US$2.5bn in 2011 to US$3.7bn in 2012 (up 48 per cent), and accounting for 39 per cent of the overall GCC interior contracting and fit-out market.
“The report is great news for all of us working in interiors and fit out,” said Naomi Barton, INDEX Event Director. “The sector in the GCC is now at its highest value since 2008, all segments are seeing marked growth, and all markets are performing well – and many of them exceptionally well. The opportunities for business and employment generation are exceptional and pretty much unrivalled anywhere else on the globe. Given the huge regional market growth and potential, INDEX International Design Exhibition 2012 responds to the keen demand we’re seeing from the interiors and construction industries for access to the latest designs and trends from renowned interior designers and manufacturers from across the world.”
The Gulf’s burgeoning hospitality segment, recording a whopping 170 per cent growth from US$0.63bn in 2011 to US$1.7bn in 2012, now puts it in second place, and on par with the commercial segment, which doubled in value from US$0.85bn to US$1.7bn over the year. The completion of mall space not just in Kuwait but across the GCC provides the biggest segment boost – with value increasing more than threefold, up 219 per cent from US$0.22bn to US$0.7bn.
Spend on additional projects, including social and business infrastructure projects like airports, hospitals and schools, remains relatively flat in comparison with other segments but still shows a marked uptick of 18 per cent, valued at US$1.6bn in 2012, from US$1.35bn in 2011.
INDEX 2012, themed “Where Inspiration Thrives,” will cover 34,000 sqm gross space of the Dubai World Trade Centre exhibition centre, occupying halls from 1 to 8 and Zabeel Hall. Over 900 exhibitors from 45 countries – including Brazil, Canada, Greece, Germany, Italy, Malaysia, Spain, UK – have booked a floor space to showcase their products.
INDEX 2012 will replicate the successful and easy-to-walk-around product specific show structure that was introduced for last year’s edition; plus five completely new sectors – Inspire, Surface & Finishes, Couture, Fixture & Fittings and Furniture – have been added to the six already existing – Furnishings, Kitchen & Bathroom, Lighting, Outdoor Living, InRetail and Textiles – giving commercial visitors an even more comprehensive and extensive offer.
INDEX is proud to announce the support of RAME Designer Solutions ME, the exclusive distributor of multinational brands of furnishing fabrics, leathers, lighting, curtain hardware and wall coverings to the interior design market, as INDEX Silver Sponsor.
During the four days of the exhibition, INDEX will also host a number of events and features, providing the design community with incredible networking and educational opportunities. The calendar of events includes:
The 4th Annual Contemporary Majlis Design Competition: INDEX 2012 will feature six shortlisted Majilis designs, selected among 45 projects submitted this year. This edition will see two winners, one selected by the jury of professionals and one by the visitors.
Les Collections Exclusives: A daily fashion show featuring couture collections realised by award winning Emirati designers DAS collection, the official creative partner and using some of the most exclusive interiors textile brands. The feature is sponsored by Beacon Hill, Bruno Triplet, Houlès Paris.
The Artist Avenue: A dedicated section of the show where artists and galleries display their own creations.
Lighting Visione designed by SVEN|M: A special section of The Lighting Show featuring iconic lighting products and innovations from the past, present and future. The feature will also be designed and curated by award winning design firm, SVEN | M.