MENA’s Design Industry Valued At $100-B In 2014
The United Arab Emirates (UAE) and Saudi Arabia are the largest design markets in the region, a new report shows
The market value of the Middle East and North Africa’s (MENA) design industry crossed $100-B in Y 2014, growing at more than 2X the pace of the global design industry over the last 4 years.
According to the MENA Design Outlook, the region’s industry grew at a compound annual growth rate of 7.4% compared to the global industry’s growth rate of 3.7% in the last 4 years.
The MENA design market also constitutes about 4.5% of the global industry.
The report predicted that the industry is primed for future growth, forecasting that the sector will have an average growth of 6%, 2X the rate of global industry’s growth. With such strong rates, the share of MENA’s design sector globally is expected to reach 5.2% by Y 2019.
The study also found that the United Arab Emirates and Saudi Arabia are the largest markets in the region, respectively earning $27.6-B and $21.9-B in design revenues in Y 2014, followed by Qatar and Egypt.
Saudi Arabia and Qatar were found to be the fastest growing markets in the region, having grown between 9 to 11% between Y’s 2010 and 2013.
Despite its strong growth prospects, the region’s design industry still makes only a relatively small contribution to gross domestic product at 1.5%, the report said.
Fashion contributed to the bulk of the design industry at 74%. It is followed by other sectors such as architecture, interior, visual arts and communication design.
“As the government amplifies its efforts to transition towards a knowledge-based economy driven by innovation, we recognise the need to accurately capture the depth of the sector and develop adequate bench marking,” said Dubai Design and Fashion Council Chairperson Amina Al Rustamani.
“The MENA Design Outlook provides us with a snapshot of the current status of the market and identifies Key challenges and opportunities. The insights from this report will enable us to shape the way forward in making Dubai the emerging design capital of the world.”
Dubai has announced plans to be a global design and fashion hub by Y 2020. The plan is expected to boost the emirate’s economy and “have a significant impact on employment” across the value chain, officials said.
Earlier this year, Dubai launched the Dubai Design District earlier this year to cater specifically to the industry. Developed by Tecom Investments, Phase 1 of d3 is already operational while the 2nd phase is due to open by Y 2017
By Mary Sophia
Paul Ebeling, Editor
HeffX-LTN
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