The spending on interiors and fit-outs in the GCC are expected to swell during 2013, by 28 percent overall to USD 7.2 billion. These figures were reported by INDEX International Design Exhibition and The Office Exhibition, the Middle East and North Africa’s largest and longest-running interior design and fit-out exhibition, being held from 20 – 23 May, 2013, at the Dubai World Trade Centre.
“Combined, both exhibitions will occupy more than 40,000 square metres at the Dubai World Trade Centre and attract over 30,000 visitors from across the residential and commercial interior, exterior and fit-out communities.” — International Design Exhibition, United Arab Emirates
In 2012, GCC projects spent roughly USD 7.2 billion on interiors and fit-outs. The report, which covered commercial, hospitality, residential and retail sectors, points out that interior spend now makes about 10 to 20 percent of total project costs in the GCC
According to the INDEX International Design Exhibition United Arab Emirates website, the commercial fit-out and interiors markets are performing well
- In 2013, the value of the commercial contract fit-out and interiors market in the GCC is expected to increase by 28 percent from USD 4.53bn to USD 5.8 billion
- In 2013, USD 50.9 billion worth of non-residential building projects are due to complete in the GCC
- In 2012, 78% of all visitors to the INDEX International Design Exhibition came to source products for their commercial contract fit-out and interior design projects
During the last quarter of 2012, Saudia Arabia recorded the highest demand for interiors and fit outs. Backed by heavy government spending on various projects, the Kingdom’s demand surpassed UAE’s, to account for 38 percent of the total share. The UAE (36 percent) was trailed by Kuwait and Qatar, each having a 16 percent market share. By doubling it’s spend to 4 percent, Oman continued to show impressive growth rate. However, Bahrain lagged behind with a 10 percent decline.
According to Frederique Maurell, Event Director for INDEX 2013 and The Office Exhibition; “As demand for interiors and fit outs mirrors project completions, refurbishments and tighter budgets were the trend during 2011 and 2012. Ideas such as better space management, flexibility and environmental sustainability in design and open plan layouts gained ground. The GCC interiors and fit outs market is now moving towards a more personality-driven design trend as the market is coming back.”
As the GCC continues to show robust demand, global suppliers move to consolidate their presence in the region. At an estimated spend of USD 3.3 billion or 41 percent of the market, the residential sector remained the largest spender on interiors and fit-outs in the GCC. In 2013, the UAE is expected to spend about USD 1.5 billion on interiors and fit-outs in the residential sector. The Emirate will be followed by Saudi Arabia (USD 1.1 billion) and Qatar (USD 300 million).