JEDDAH: The growth of Saudi Arabia's retail sector leads all GCC markets with an estimated 900 percent increase on interior spend in 2011 of up to $343 million versus last year's spend of $34 million, making it the second largest retail market for interiors in the region.
INDEX, the Middle East and North Africa's largest and longest established Interiors and Design Exhibition, announced these findings from a report with Ventures Middle East.
The show will take place at the Dubai World Trade Center from Oct. 22-25.
The report pointed out that GCC retail sector remains competitive as spend on interiors continues to grow with an increase in spend of 71 percent expected in 2011 over last year's spend of $384 million.
It also reveals that GCC projects spent $4.5 billion on interiors and fit-outs in 2010, and expect to increase spend by more than a quarter (26 percent) this year.
The report, which focused on the four key pillars of the real estate sector -- commercial, hospitality, residential and retail -- shows that interiors account for up to 30 percent of costs for GCC projects.
"The GCC real estate market is showing positive signs for the interiors market," said Paula Al-Chami, event director for INDEX.
"With existing projects at or near completion and countries around the region expanding specifically in the commercial and hospitality sectors, there will continue to be a strong demand for interiors and fit-outs," added the director.
"Another trend we see is companies shifting focus from starting fresh projects to managing existing projects to make them more attractive, which is where interiors will play a key role."
The growth of Saudi Arabia's retail sector leads all GCC markets with an estimated 900 percent increase on interior spend in 2011 of up to $343 million versus last year's spend of $34 million, making it the second largest retail market for interiors in the region.
Overall in the GCC, the retail sector remains competitive as spend on interiors continues to grow with an increase in spend of 71 percent expected in 2011 over last year's spend of $384 million.
For the commercial sector, which now sees companies focusing on property management rather than new projects, GCC spend on interiors is set to increase 36 percent to $1.5 billion over last year's spend of $1.1 billion.
Led by Jeddah and Riyadh, the commercial sector in Saudi Arabia spent $108 million in 2010 on interiors and will more than triple its growth with an increased spend of $359 million in 2011.
Reflecting this growth is the fact that between 2010 and 2012, 18 million m2 of office space will have become available for interiors and fit-outs in the Kingdom, which is now primarily focusing on infrastructure such as educational institutions and hospitals.
Of the key sectors in the GCC, the growth of the hospitality sector leads with an expected 230 percent increased spend in 2011 of $1.8 billion as hotel groups aggressively expand across the region.
The sector continues one of its best phases in Saudi Arabia, especially in the holy cities of Makkah and Madinah where religious tourism is on the rise.
This year, the Kingdom is expected to see a major increase on interiors with spends of $220 million.
The report also said that from GCC real estate contracts issued from May to July this year, the value for interiors and fit-outs is estimated at over $700 million.
INDEX 2011 will evolve its profile by introducing a new line up of six product-specific shows under the INDEX brand including Furnishings, InRetail, Kitchen & Bathroom, Lighting, Outdoor Living and Textiles.
The new product-specific shows at INDEX will showcase an impressive line up of top international manufacturers and brands, bringing their latest products, trends and design innovation to this region.
The exhibition will also showcase 20 national pavilions, providing product specification by country."
© Arab News 2011
