High demand from urban construction sector

The UAE has the biggest share in the region’s booming flooring market

The Middle East flooring market is growing due to the high volume of construction activities in the region. The increasing end-use application and types of flooring material will continue to support consumer demand.

The UAE makes up the majority of urban construction projects in the GCC and together with Saudi Arabia constitute approximately 71 per cent of all urban construction projects in the region.

The UAE is a considered a regional hub for shopping and luxury retail. Last year Dubai saw a 26,000 square metre increase in retail space, with an additional 350,000 square metres planned for in 2017 and 367,000 square metres in 2018.

Among the various types of urban construction projects, residential and office buildings account for nearly 80 per cent of all urban construction activities and constitute much of the demand for flooring material in the region.

The Middle East flooring market is expected to reach $10 billion in 2026. The flooring market is expected to grow at a compounded annual rate of over 5 per cent.

The flooring market can be divided into the following segments: carpet and rugs, tiles, vinyl and rubber flooring, wood flooring and other types such as laminate flooring. Nylon is the most widely-used material, which has an estimated value of $2.6 billion and constitutes more than 40 per cent of the flooring market share in the region.

The main demand driver for flooring material appears to be coming from the urban construction sector, which comprises of office and residential buildings, mega-urban developments, religious buildings, education buildings, leisure and recreation facilities, hospitality buildings, healthcare facilities and retail facilities. As per the BNC Project Intelligence report, there are 20,885 active construction projects in the GCC alone, of which approximately 80 per cent is in the urban construction sector.

The construction market has been growing over the past few years, notably in the UAE and Qatar in preparation for the upcoming World Expo 2020 and 2022 FIFA World Cup. Both countries are investing in hospitality and tourism in anticipation of the high visitor turnouts.

According to statistics from the UAE Department of Tourism and Commerce Marketing, the number of hotel room supply requirements could range between 140,000 to 160,000 rooms by 2020 with another 10,000-plus rooms that need refurbishment to meet the expected demand.

The UAE currently has approximately 85 hospitality projects in the initial stages of construction (i.e. concept and design), including the Firdous Sobha in Umm Al Quwain ($6.8 billion), the Hospitality District in the Mall of the World in Dubai ($1 billion), and RP One in Business Bay in Dubai ($1 billion).

The GCC urban construction sector has approximately 16,411 active projects, which account for nearly 80 per cent of all construction activities in the region. The high volume of urban construction projects is driving the demand for flooring material.