A new report has found that the GCC’s interiors industry has surged in value by more than US$2.2bn in the last year alone, to $17.7bn. The figures are revealed ahead of tomorrow’s opening day of Index, the Middle East’s interior design exhibition. A region-wide study, conducted by market analysts Ventures, found that despite oil price fluctuations, the Gulf’s interiors industry has grown in value by more than US$2.2billion in the last 12 months alone.
The research discovered that the value of interior-based design and fit-out spend has risen from US$15.5bn in 2016 to US$17.7bn this year, with the steep rise attributed to near-constant innovation and what experts describe as “ever-changing personal preferences”.
The report concluded that interior design is one of the Gulf’s fastest growing industries.
A Ventures spokesperson said: “Contractors in the GCC should consider themselves fortunate to be positioned in a region that is still very active compared to many other parts of the world despite low oil prices.
“With the current slowdown in the market and the fast-approaching dates for Expo 2020 and FIFA World Cup 2022, developers and consultants are bound to turn their attention towards providing high-quality refurbishments to their existing projects, in turn fuelling the demand for interiors and fit-out contractors. The value of projects in the construction and interiors pipeline is four times the value of projects completed in the past ten years.”
Samantha Kane-Macdonald, event director at Index, commented: “In the face of global economic challenges, the pioneering endeavor and ambition of designers, architects and construction professionals based throughout the Gulf continues to not only persevere, but conceive, invent and drive the future of design.
“The region will play host to some of the world’s biggest events over the next decade, and the construction and redevelopment process for each of those is already well underway, across all sectors; hospitality, commercial real estate, retail, health and hospitals, and education. It’s hugely exciting.”
According to the report, the interiors industry is valued at its highest within the building sector, where its annual worth is $9.2bn – up almost $1bn on last year. The commercial real estate ($1.1bn), hotel ($2.1bn), retail ($1.2bn), hospital ($667m) and education ($452m) sectors have all increased interiors investment since 2016. The residential sector remained buoyant with an annual value of more than $3bn.
Individual interior product industries are also experiencing profitable growth. The lighting fixtures market is predicted to be worth $3.5bn by 2020. Textile imports and exports are valued at $3bn-a-year, with furniture and fittings recording similar figures.
The 27th edition of Index Design Series will take place at the Dubai World Trade Centre from 22 – 25 May, 2017.