The Saudi Arabian furniture industry has come up as one of the most vibrant segments of the retail industry over the past few years, RNCOS said in its latest "Saudi Arabia Furniture Market Analysis." The furniture demand in the Kingdom is anticipated to reach around $ 1,160 million by 2013, the report said, noting that furniture market is anticipated to grow at a CAGR of around 12 percent during 2011-2013. The Saudi furniture industry witnessed remarkable growth opportunities and became one of the fastest growing industries in the Middle East region. With the entry of a number of real estate developers and increasing demand for residential property, the housing industry has witnessed tremendous growth in the past. Over a period of time, young population-base, government funding, and booming economy, together with other secondary factors led to provide a preferred platform for the furniture industry for developing new horizons. Moreover, the Central region is considered as the hub for the Kingdom'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 furniture industry developments. The report also showed that the Saudi Arabian hotel industry has emerged as one of the flexible pillars of economic development. Despite, challenges of oversupply in the short to medium term, investors in the hotel industry are optimistic about future prospects with a paradigm shift from development to investment-led market. 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.
