Press Release

Rising Construction Activity Boosts Timber Demand in Middle East & North Africa

The Middle East & North Africa Timber market is anticipated to grow at a CAGR of around 9.49% in the forecast period of 2023-28, says MarkNtel Advisors in their recent research report. The rising commercial & residential construction activities in the Middle East & North Africa are attributed to the sizeable demand for this wood during the forecast years. The growing tourism in the countries such as the UAE, Jordan, Israel, Saudi Arabia, etc., has been fuelling the construction activities of commercial buildings such as luxurious hotels, resorts, etc.

Along with this, the growing expatriate, as well as the domestic population of the region, is further inducing the need for more homes. The burgeoning investments by the governments of the countries such as the UAE, Egypt, etc., for the construction of hospitals, educational institutions, etc., would promulgate the demand for timber in the years to come. In 2022, the Dorchester, London, Hotel Plaza Athenee, Paris, and The Beverly Hills Hotel, Los Angeles, partnered with the UAE’s Omniyat for the development of a luxury hotel named, ‘The Lana,’ in the UAE.

The region is rigorously working on establishing smooth power transmission networks to maintain grid stability & balanced voltage support to the entire power systems, which has led to the significant demand for cables and, hence for cable drums during the historical years. The requirement for cables in transmission line construction has further amplified the stipulation for timber to cater to the requirement for adequate cable drums. Moreover, the governments in the Middle Eastern & North African countries aimed to strengthen their economic base & improve their employment rate by establishing furniture factories. As a result, the governments & the associations entered into agreements for local furniture production, reducing the overall import taxes.

In addition, foreign furniture manufacturing companies are also expanding into their neighboring countries to enhance their presence & explore business opportunities. Thus, the growing environment of regional furniture manufacturing base coupled with rising foreign furniture manufacturer entrants would drive the demand for this wood during the forecast period, further states the research report, "The Middle East & North Africa Timber Market Analysis, 2023."

Engineered Wood to Hold Dominant Share in the Market

Based on the product type, the market is further bifurcated into Softwoods, Hardwoods, and Engineered Wood. Of them, Engineered Wood is expected to grab a significant share in the Middle East & North African market during the forthcoming years, owing to its numerous advantages in building construction, such as strength, resistance to variations in temperature, moisture, etc. Additionally, the compatibility of timber for underfloor heating, & moisture resistance would positively contribute to the demand for engineered wood like plywood for building construction, as the region observes extremely hot & humid climatic conditions in most of the months throughout the year. The usage of cross-laminated timber for construction in the countries such as the UAE, Saudi Arabia, Egypt, etc., would supplement during the forecast period, as they have better load-bearing elements for the roof, floor, and wall applications

The UAE Would Grow at a Considerable Rate

Geographically, the UAE would witness significant growth in the Middle East & North Africa Timber market due to the launch of various projects to construct commercial buildings, such as 5-star & 7-star hotels, retail malls, recreational hubs, etc., in the coming years. In addition, the growing cross-border trade & leisure travelers have been propagating the hospitality & tourism sector of the country. Moreover, with the rapid technological advancements in the UAE have been heading towards the development of smart cities, along with the construction of new smart & green buildings, which would positively impact the demand for timber.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Interpro Wood Industries LLC, International Timber Company – ITCO, Al Qarib Wood Industry LLC, Starwood Orman Urunleri Sanayi A.S., ARA Timber, Danzer, and Others are the top players while United Trading and Supply, Saleh International LLC, Vinawood Development & Investment Company Limited, Sunrise Plex, UNI4 Marketing AB, and Others are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across various countries?
6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?