Furniture consumption in Saudi Arabia is expected to expand at a compound annual growth rate of around 12 percent during 2011-2013, making it one of the most attractive furniture markets in the Middle East, says a new report.
It says furniture consumption has rapidly expanded over the past few years on the back of rising affluence and tourism developments.
The industry has sustained its growth rate, achieving positive year-on-year growth, says the report titled ‘Saudi Arabia Furniture Market Analysis’.
It said studies had identified that the Saudi Arabia hotel industry has emerged as one of the flexible pillars of economic development.
RNCOS, a leading market research and information analysis company with a global presence, has published the report.
It said that investors in the hotel industry are optimistic about future prospects with a paradigm shift from development to investment-led market despite challenges of oversupply in the short to medium term.
Institutional investors are increasingly focusing on stable, secure, and more predictable income streams as opposed to short-term capital gains which favor the hotel sector that offers them a range of income producing assets.
On the regional front, the central region is considered a major hub for the country’s furniture manufacturing industry.
Riyadh, Qasim, Hail, etc. are the most preferred regions for manufacturing furniture in the Kingdom.
The area comprises of uplands, broad valleys, and dry rivers.
Qasim and Kharj areas are famous for agriculture production and wood work is also a growing opportunity there.
Amid most favorable regulatory policies and suitable business environment, the region has showed notable developments in the furniture industry.
The factors that are critical to the success of the Saudi Arabian furniture industry are also analyzed in the report.
The report provides an insight into the Saudi Arabian furniture industry and evaluates the past, present, and future scenario of the Saudi Arabian furniture market.