The furniture industry in Saudi Arabia has emerged as the fast growing highly untapped industry over the past few years. According to new report “Saudi Arabia Furniture Market Analysis” released by CompaniesandMarkets.com on Wednesday, the furniture consumption in Saudi Arabia has rapidly expanded over the past few years on the back of rising affluence, influence of western culture and tourism developments. 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. This has infused growth in the household furniture market growth. Booming economy, government support and young population base coupled with other secondary factors have created a strong platform for the furniture industry to grow to new horizons. Despite the economic slowdown, the industry sustained its growth rate and achieved positive year-on-year growth. Moreover, the furniture consumption is anticipated to grow at a CAGR of around 12 percent during 2011-2013, making the Kingdom one of the most attractive furniture markets in the Middle East. Currently, the Saudi Arabian furniture industry is witnessing a huge demand-supply gap due to massive in-efficient and underdeveloped wood products industry, the report said. Domestic manufacturers are facing shortage of furniture raw material and parts and hence huge imports become inevitable, it added. However, imports were expected to decline in the future as many international furniture giants are establishing their roots in the Kingdom and raw material supply is also getting government attention, the report said. Property prices in parts of Riyadh and Jeddah have risen in the past year as Saudi Arabia's growing population drives demand for new homes, Oxford Business Group said.
