(MENAFN- America News Hour) United Arab Emirates office furniture market is expected to record a positive CAGR during the forecast period. The increasing employment rate and rising usage of office spaces are some of the major factors attributing to the growth of UAE office furniture market. Launch of innovative office furniture, such as 3D/2D office furniture, is expected to further increase the demand for office furniture in the region. The increasing construction activities in the country and upcoming events, like Expo 2020, are expected to provide significant growth opportunities for the market. Expo 2020 is expected to generate revenue up to USD 35 billion in the United Arab Emirates. The pre expo phase is anticipated to boost the real estate and construction sectors, which is expected to increase the need for new office space. Also, the government regulations on FDI in free zones are one of the major drivers that may increase the number of business activities, such as establishment of new businesses and business expansions, in the country, which in turn, may directly impact the growth of the UAE office furniture market.
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Currently, the country majorly meets its demand by importing its office furniture requirements from countries, such as China, Italy, Germany, Malaysia, and Lithuania. The country also reexports imported office furniture to other Gulf countries and countries, like Kenya and Lebanon. Coworking and flexible workspaces are emerging as a rising trend across the commercial real estate sector in the country. In 2020, new market entrants are anticipated in the country. In addition, the existing companies are also expected to provide additional coworking spaces and flexible office facilities. For instance, currently, Dubai has 53 coworking locations, which indicates a growth of nearly 130% since 2015. Dubai has around 650,000 square feet of flexible and coworking spaces. The rise in new coworking and flexible office spaces is likely to drive the demand for office furniture for the new office spaces.
Key Market Trends
Office Spaces in Dubai and Abu Dhabi to Witness Strong Growth
During the first quarter of 2019, in Dubai, many office space construction projects were completed, which is expected to be one of the major demand drivers for the UAE office furniture market. For instance, developments of One Central near DIFC in Dubai, headquarters of HSBC in Downtown Dubai, The Opus in Business Bay, and Dubai Silicon Oasis were some of the major projects that were completed during Q1 2019.
Furthermore, over the same period, Dubai experienced an increased number of commercial office space construction activities, as compared to Abu Dhabi. However, majority of the projects were small-to-medium sized projects, such as SADEM building in AL Raha Beach, completed by private developers present in the United Arab Emirates. Such a rise in the supply of office spaces is also anticipated to significantly increase the demand for office furniture in the United Arab Emirates over the forecast period.
Rising Startup Ecosystems in the United Arab Emirates
In the Middle East and North Africa (MENA) region, the United Arab Emirates has a robust startup market. The United Arab Emirates holds a dominant position in the Middle East, with nearly 26% of the transactions being made to the UAE-headquartered startups in the region in H1 2019. The country also attracted the highest startup funding in the MENA region in 2018, with USD 625 million in investment.
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Fintech is one of the fastest-growing sectors, receiving the largest number of investments, accounting for nearly 17% of the deals, followed by the e-commerce, delivery, and transport sectors. The country has the largest number of fintech startups in the Middle East, which is forecast to expand from 96 in 2019 to 465 in 2020. With the United Arab Emirates being one of the most active startup markets in the MENA region, it is anticipated that this surge in the number of startups may increase the office spaces, which, in turn, is likely to further increase the demand for office furniture during the forecast period.
Competitive Landscape
The report covers the major players operating in the UAE office furniture market. The market is comprised of both international and local players. Some of the prominent international companies present in the market include Herman Miller and Steel Case. Some of the local players having a strong market presence include Bafco, Almana Maples, and StarOffice.
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
4.5 Porters 5 Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Impact of COVID-19 on the Market
5 MARKET SEGMENTATION
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