Saudi-Pakistan Investment Forum discusses boosting trade and investment partnerships    Crown Prince concludes MEGISummit: We will work seriously to achieve our goals    EXIM Bank signs MoU with Japanese Sumitomo Mitsui Banking Corporation    Saudi Pavilion at EXPO 2020 marks 76th anniversary of UN establishment    Greece premier praises importance of Middle East Green Initiative Summit    Saudi Arabia calls for restraint, de-escalation in Sudan    Riyadh Season hosts Barcelona and Boca Juniors on Maradona Cup night    Monshaat partners with MITEF Saudi & Arab Startup Competition    HSBC CEO — 2021 set to be first trillion-dollar year for green bonds    Riyadh dominates GCC rankings in human capital    All eyes on Jeddah! World's best golfers set for climax of Aramco Team Series    Crown Prince launches series of regional initiatives for climate action at MEGI Summit Ushering in a new green era for Mideast region    WFP's Beasley lauds Saudi Arabia's role in providing aid to millions around the globe    RedSeaIFF announces best short films by emerging Saudi filmmakers 15 shorts make up New Saudi/New Cinema slate    Pakistan hammer India by 10 wickets to clinch T20 win    Michael Jordan's trainers sell for record $1.47m at auction    China postpones Beijing marathon due to Covid surge    US actor James Michael Tyler dies aged 59    Bride's fingerprint not required in revised e-marriage contract    'Easy On Me': Adele returns to UK number one    'Be a Star' — WWE stars fight cyberbullying in Riyadh    Bollywood superstar's son denied bail in drugs case    Saudis, expats mourn death of prominent Filipino preacher in Riyadh    Bollywood actor Sidharth Shukla dies at 40    Custodian of the Two Holy Mosques Directs KSrelief to Urgently Provide Malaysia with Medical, Preventive Equipment and Supplies to Address COVID-19 Pandemic    Custodian of the Two Holy Mosques Congratulates President of Maldives on Independence Day    Weather Forecast for Sunday    RSNF Commander Patronizes Ceremonial Launching of His Majesty's Ship "Jazan"    OIC Condemns Houthi Attempts to Target Civilians in Saudi Arabia    Philippines evacuates thousands as monsoon rains flood cities, provinces    Heavy rain in India triggers floods, landslides; at least 125 dead    U.S. Records 64,321 New Infections of Coronavirus    Without Fans, Tokyo Olympics Kicked Off    Pilgrims Perform Dhuhr and Asr Prayers at Arafat Holy Site    Dr. Mohammed Sulaiman Al-Jasser, Saudi Arabia's Pick to Chair IsDB Group for the next five years, unanimously approved by BoG Committee of Procedures    Saudi Press: Fitch affirms Saudi Credit Rating at "A" with a revised outlook to stable from negative    Handled Cargo at Saudi Ports Increases during June 2021    SDAIA, DARP & STC Launch Pilgrim's Smart Bracelet (NUSK)    2 Goals by Diaz Gives Colombia 3rd Place at Copa America    Saudi Cinema Night at Arab World Institute in Paris Kicks Off    KSU Leads Joint International Scientific Project for Early Detection of Breast Cancer    Saudi Arabia to Participate in Cannes Film Festival 2021    Arab Cup U-17 Championship Draw Saudi Arabia, Morocco, Palestine, Kuwait, in the 1st Group    AWI Hosts Saudi Cinema Nights in Paris    Brazil Beats Chile at Copa America Despite 2nd-Half Red Card    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

Gulf's interior design industry to hit $22b in 2010
Published in The Saudi Gazette on 06 - 11 - 2009

New research commissioned by INDEX estimates that the value of interior design contracting (IDC) and fit-outs within the GCC will grow by almost 90 percent between 2009 and 2010, with a total value in that period of $22 billion. Two thirds of this spend will be within the UAE.
The research was carried out by leading independent research company Ventures Middle East, on behalf of dmg World Media, the organizers of INDEX, the leading interior design show in the region, WAM new agency reported on Thursday.
Ventures Middle East estimates that the total value of new construction projects for all sectors (hospitality, commercial, retail and residential) in the GCC with completion dates within 2009/2010 is some $149 billion. Despite the economic recession, the UAE remains way ahead of the rest of the region, accounting for 66 percent of all new construction projects, followed some way behind by Saudi at 15 percent and Qatar at 10 percent.
IDC is the works of hard finishes - flooring, ceilings, walls etc - and is an average of 15-20 percent of the total project value. Fit-out is the furniture and fixtures, electrical, kitchen, laundry etc, estimated at an additional 5-8 percent of the total project value. The research indicates that there will be higher spending on IDC and fit-out in 2009/2010 than in 2008 - and will be worth some $22 billion in total over the two years.
Residential construction projects are the drivers of the IDC and fit-out spend, accounting for 49 percent of the total estimated value, followed by hotels at 27 percent, offices at 19 percent and the retail sector just 6 percent.
Speaking about the research, Lu Buchanan, INDEX Show director, said: “The research by Ventures shows that there are good prospects for the interiors industry, as we start to move out of the economic downturn. The UAE continues to be a driver for the industry, and this supports our belief that Dubai is ideally placed to become the global hub for interior design. In view of these prospects, INDEX comes at a good time, bringing together the interiors industry from across the globe.” The report considers the four construction sectors as follows: Hospitality - the total value of hospitality projects within the GCC between 2009 and 2010 is almost $20 billion, with fit-out and IDC spend at $6 billion. The UAE takes the lion's share, accounting for 69 percent of the value, and is entering a phase of sharp growth, with spending on IDC and fit-out set to increase by a 69 percent from $1.5 billion in 2009 to $2.6 billion in 2010. KSA hospitality projects are worth some $2.3 billion, with estimated spending on IDC and fit-outs at $690m. In Bahrain, over 10 five star hotels are expected to come online between 2008 and 2010, with total IDC and fit-out value of over $412m.
Commercial Sector - according to leading interior design and consulting contractors, an average of 10-12 percent of the total commercial/offices projects value is allocated for interior design and contracting and major fit-outs for office space. The total value of new commercial projects within the GCC is $34 billion, with IDC and fit-out estimated at $4 billion.
Retail sector: shopping centers - the analysis includes spending of IDC and fit-out for general requirements, and not the retailers' own spending on their outlets. Total value of retail projects with completion dates between 2009-2010 in the GCC is $5 billion, with spending on fit-out and IDC at $1.3 billion.
Within the UAE, the most recent addition to Dubai's retail sector was Dubai Mall, which opened in 2008 with a GLA of 344,000 sqm. The Mall of Arabia is due to open in 2010 with a GLA of 400,000 sqm. Total value of UAE retail projects is $2.6 billion, with fit-out and IDC estimated at $644m.
In Qatar, Doha currently has 700,000 sqm of retail space, which is expected to increase by 1.1m sqm in the next 5-6 years. It is likely that a sizeable amount of that new supply will enter the retail market between 2009 and 2010, with projects valued at $313m, and IDC fit out at $79m.
Saudi Arabia's estimated GLA of 2.4 million sqm is expected to be complemented by another 4 million over the next 5 years. Retail sector projects worth over $1.4 billion are expected between 2008 and 2010, including the mega Central Park Mall in Jeddah costing around $1 billion. Estimated spend on IDC and fit-out on KSA is $362m.
In Bahrain, around 18 malls supply the market, with 280,000 sqm of GLA, and retail mall space is expected to double between 2008 and 2012. The value of new malls in 2009/2010 is $113m, with fit out worth $28m.
Residential Sector - Project Developers typically do not spend generously on IDC for residential projects, as this is something usually covered by the end-user.
According to industry experts, 10-12 percent of total project value can be estimated for interior design. In the GCC, total residential construction projects in 2009/2010 are estimated to be worth $90 billion, with $10.8 billion on IDC and fit-out. In the UAE, Dubai has an oversupply of residential units, but Abu Dhabi is estimated to require over 120,000 additional units by 2012.
It is thought that the period 2008-2012 will see the supply of high end residential properties that will require high end Interior design, with the middle income segment remaining unmet until 2012.
Total residential developments in the UAE are worth $60 billion, with an estimated $7 billion spent on interior design.
In Saudi Arabia, project spending is expected to pick up significantly in 2010, and the estimated total value of residential projects is $13.1 billion, with $1.6 billion on IDC and fit-out.
In Qatar, Doha will continue to experience strong residential demand over 2009 to 2012, and it has $9.3 billion projects to be completed between 2009 and 2010, with a conservative $1.1 billion estimated spend on fit out.
Kuwait has $1.4 billion worth of projects, with $166 million spend on interior design. Total residential projects in Bahrain are expected with a value of $5.5 billion, with IDC and fit-out at $656 million. Oman has residential projects worth a total of just under $1 billion.

Clic here to read the story from its source.