Fit-out industry chasing $59bn in GCC contracts

"Regional construction may witness some slowing down over the coming years but there are still record breaking contracts across the Gulf Co-operation Council (GCC) countries for the fit-out of commercial and residential buildings, hotels, retail outlets and mixed-use developments reaching completion next year,"

said Kim Willis, Exhibition Director of Index, the largest interiors event of its kind in the Middle East and Asia.

The peak this year in current civil construction projects across the GCC comes at the end of a steep three-year climb and as the world economic slowdown begins to bite. As global and regional economies enter a new phase, however, potential budgets for the interior fit out of buildings reaching completion in 2009 and 2010 continue to show major growth potential, according to statistics compiled by project database company Proleads.

In the United Arab Emirates alone, contracts worth up to a potential $51bn could be awarded in 2009, rising to $73bn in 2010. The biggest single sector for potential growth is in mixed use developments which could see total contracts valued at around $40bn next year.

Willis, added:
"There is, of course, some uncertainty in the market as to how far the slowdown in the property development will impact with projects possibly being scaled down or put on hold. The cost of fit-outs may also fall somewhat as contractors seek to remain competitive. In the medium term, however, spending on fitting out completed buildings retains major growth potential. It is no wonder that exhibitors are clamouring for floor space at Index 2008. There is enormous potential demand for residential, contract and public furniture, flooring and wall coverings, lighting and art, accessories and window products, textiles, ceramics, kitchen and bathroom furniture and interior design services."

Nearly 1,700 companies from 56 countries took part in last year's Index, including 35 major country pavilions. According to organisers dmg world media Dubai, the 2008 event taking place at Dubai International Exhibition Centre on 3-7 December 2008 will accommodate 2,000 exhibitors and attract in excess of 35,000 visitors

In a regional first, this year Index will be displaying the best of product design from the Red Dot Museum in Essen, Germany. The red dot on a product signifies high quality, outstanding design and functionality.

Index will also host Al Habtoor Interiors Young Designers Award in which designers are eligible to enter the competition themed on a hotel room. This year, participating universities include the Ajman University of Science and Technology, MAHE Manupal University and American University of Sharjah.