$2.4tn worth of construction to boost wood consumption in GCC
The $2.4tn (AED8.8tn) worth of construction activities In the GCC is driving demand for wood products in the region, according to the organisers of the Dubai WoodShow
The $2.4tn (AED8.8tn) worth of construction activities in the GCC is driving demand for wood products in the region, according to the organisers of the Dubai WoodShow.
Studies have shown that 70% of timber and wood products are being used in the construction industry, with the real estate sector, interiors, furniture and other industrial applications following closely behind.
The wood and wood-based products sector will get a further boost with the delivery of more than 25,000 homes in Dubai this year, especially when new home-owners start purchasing their furniture and home décor products, industry reports revealed.
With an average spent of $2,722 (AED10,000) on wooden products per home, this translates to a $68m (AED250m) spent in this year in Dubai alone.
However, with more than 35,000 residential units slated for delivery in 2018, spend on wooden products is expected to jump 40% to $95m (AED350m).
Dawood Al Shezawi, CEO, strategic marketing and exhibitions, organiser of the Dubai WoodShow, said: “The growth in the housing market will drive the wood, wood-related and timber business across the region and this creates a great opportunity for the industry.
“However, consumers are also looking for replacing new, innovative products to replace the old furniture, especially those innovative furniture that help families to manage spaces in a better way. Those products will be in solid demand.”
Similar trends can be seen in the hospitality sector, where more than 100,000 hotel rooms and serviced apartments are currently in operation in Dubai alone.
Additionally, the emirate will need to have a strong hotel inventory of 140,000 hotel rooms and hotel apartments by October 2020 to meet this growing demand.
“As the hotel developers are racing against time to deliver more than 40,000 hotel rooms that will help the emirate to serve 20 million hotel guests annually as well as the 25 million visitors to Expo 2020 in six months’ time,” Al Shezawi, said.
“As we speak, a number of hotel operators are floating tenders for wooden beds, tables, and wooden interior products to offer greater comfort to hotel guests. This is going to be a great driver of demand for wooden products.”
The Dubai WoodShow will be held at the Dubai World Trade Centre from 12-14 March, 2018, with the organisers anticipating more than 300 exhibitors from over 106 countries at this year’s event.