The overall GCC interior contracting and fit-out market will increase by 87 percent in value this year, the highest increase since 2008, from US$5.04bn in 2011 to US$9.4bn.
The figures are based on research from Ventures ME and commissioned by dmg :: events, the organising team behind INDEX International Design Exhibition.
“The report is great news for all of us working in interiors and fit-out,” said Naomi Barton, event director, INDEX.
“The sector in the GCC is now valued more highly than it has ever been, 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.”
According to the data, the UAE 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 percent 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 percent, 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 percent 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 percent), and accounting for 39 percent of the overall GCC interior contracting and fit-out market.
The 22nd annual edition of INDEX will run from Monday, September 24, 2012 to Thursday, September 27, at Dubai World Trade Centre.