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Garden furniture market growing 20% annually in Middle East
Dubai, UAE, September 8, 2013: Al Baddad International has signed an agreement with China-based giant manufacturer HIGOLD to produce high-quality garden furniture. The move is the latest addition to the company's portfolio and aims to help meet growing demand for the products in the Middle East, as the market grows 20 percent annually. The new production line adds to Al Baddad's large product range of prefab buildings and tents. The garden and outdoor furniture will be manufactured in China, with high-quality materials sourced from Italy and models created by established European design houses. “This is an important milestone for Al Baddad International, as we expand our footprint and manufacturing capabilities to bring wider options and at competitive pricing to our customers,” said Zayed Al Baddad, Chairman of Al Baddad International. “Together with our partner HIGOLD, we are committed to bringing our customers the highest quality products with the latest innovative designs from Europe.” Al Baddad International made its debut into the outdoor and garden furniture market four years ago, after identifying a market gap resulting from the availability of high-end products at exorbitant prices or lower-end furnishings with poor quality. Al Baddad immediately had an edge on the competition, offering customers not only high-quality products at affordable rates, but also a guarantee on their purchase against weather conditions such as humidity and high temperatures. Soon after its market entry, the company achieved record sales in a short period of time. The new line of manufacturing has already started, with a focus on creating products that are exclusive, functional, trendy and capable of withstanding harsh weather conditions. As a start, Al Baddad will serve markets including the Gulf Co-Operation Council (GCC) countries, Jordan and Europe, with plans to expand further afield in the future. “HIGOLD is one of the most prominent manufacturers in China and an ideal partner for this venture, especially given its focus on high standards and quality,” said Al Baddad. “This line introduces new trends in outdoor and garden furnishings to the region, offering a large selection of unique designs with outstanding quality.” The outdoor and furniture market in the GCC has been growing at 20 percent annually over the past few years, according to industry reports. Among the region's countries, the United Arab Emirates has been the fastest growing market with strong demand for the products on the back of burgeoning hospitality and retail sectors. The UAE and the region are expected to maintain this growth rate for the next decade, thanks to upcoming hospitality and leisure projects.
Approximately 70 percent of demand for outdoor furnishings comes from the hospitality industry. In 2013 alone, 144 hotels are scheduled to open in the Middle East and North Africa region, with another 141 hotels to join the market next year. The number of hotels under construction in the region stands at 483, according to reports by STR Global. Another growth driver for the sector is the uptake in home purchases, particularly in the UAE and Saudi Arabia, with the remaining 30 percent in demand coming from home owners. The GCC region's economies continue to prosper on the back of revenues from hydrocarbons, trickling down to other sectors of the economy, including real estate. As this trend continues, demand for outdoor furniture is forecast to grow.
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