Saudi Arabia Office Furniture Market Outlook 2019-2035 : Market Size, Trends, Growth, Opportunities | COVID-19 Impact Analysis

Saudi Arabia Office Furniture Market Overview 2019-2035

The Saudi Arabia office furniture market has become one of the vibrant and fastest growing industries in the GCC region. The region aggregate office furniture demand amounts to US$ 4.60 billion at production prices. The office furniture market size has the potential to grow by USD 22.67 billion during 2019-2035, and the market's growth momentum will accelerate during the forecast period. The growing number of real estate developers and increasing demand for residential property along with government initiatives to develop soci-economic infrastructure is driving the whole furniture industry in the kingdom of Saudi Arabia. The rising interest and investment of foreign players either to increase their presence or double their business to expand in different emirates is further boosting the regions furniture industry. It is anticipated that the demand in the office furniture industry will grow at a CAGR of around 11% during 2018-2022.

Rising Demand for luxury Furniture: Tourism based revenue increased from SAR 57.30 billion in the year 2004 up to SAR 193 billion in 2017 indicating a significant increase in tourism. As of 2018, the capital city had an expected demand for 9086 rooms along with an occupancy rate of 64.9%.Public investment Fund ploughed SAR 10 Billion into entertainment avenues in 2017 and under the National Transformation Program the kingdom has invested SAR 171.50 billion in tourism development. Upcoming hospitality projects such as the Red Sea Development project, set to include over 2,500 rooms across 40–50 hotels, attracting a number of global brands, including Intercontinental Hotels Group will derive the demand for luxury furniture in the KSA. Saudi Arabia hospitality providers will indulge in high quality and premium furniture which will leave a mark for their visitors.

Contract Furniture: The contract furniture and furnishings market in Saudi Arabia is estimated around US$ 744 million (comprising lighting fixtures). Local - governmental- and foreign investments have been the main drivers of this performance. The manufacturing of classic wooden furniture claims the lion’s share, but the presence of steel and metal items is also increasing in the market.

Saudi Arabia Office Furniture Market Segmentation

By Product Type

• Seating’s
• Desks /Workspaces
• Storage
• Accessories
• Tables

By Material

• Wood
• Metal
• Plastic
• Others (Glass, Leather, Steel and more)

By Commercial Segment

• Commercial Home
• Home Office

By Price Range

• Mass Market Furniture
• Premium /Luxury Furniture

By Distribution Channel

• Online Distribution Channel
• Offline Distribution Channel (Retail, Hypermarkets, Supermarkets and Others)

By Consumer Segment

• Commercial Office
• Home Office

Saudi Arabia Office Furniture Market Dynamics

Saudi Arabia Office Furniture Market: Growth Drivers

• Expected increase in Residential Ownership: The government of KSA has been keen to increase real estate allocation under Sakani program to the citizens of Saudi Arabia and as a part of the same, the government is actively leasing out properties for office purposes as well. Around 590,000 residential products were allocated in 2017 and completed. In 2019, the target is to allocate 210,000 additional products across all regions. Demand for furniture items such as beds, sofa sets, dining tables, chairs, and workstation desks will elevate over long term.
• Change in the Furniture Purchasing Preference of People: With the increase in nuclear families, rising internal migration of Saudi people due to job requirements, easily assembling and multi-purpose furniture is required. Currently, 76% of the homes in Riyadh are considered nuclear as compared to 68% of nuclear households in 1996. Retailers who can provide furniture such as desks, tables which are easily portable and can be utilized in various ways will be preferred by the people of Saudi Arabia.
• An increasing focus on developing education infrastructure has started paying rewards and the countries are receiving large number of skilled professionals domestically. Comfortable Investments regulations attracted large number of multinationals to enter the market in various sectors like IT, Energy, Education and Manufacturing etc.

Saudi Arabia Office Furniture Market: Opportunities

• Changing preferences of people from bulky furniture to compact, lightweight and multi -purpose furniture will drive opportunities for the market players to diversify their product portfolio.
• High demand for office furniture is raising the competition among producers, especially after polarization of the local factories to high tech, high performance oriented and provision of operational efficiency that will facilitate the transfer of advanced technology and high performance. In the future, improved operational efficiency will function as a catalyst for the reduction of office furniture in the Kingdom and bulk purchases will benefit the most from the proceedings.

The list of some important construction companies are: Saudi Bin Laden Group, Al Rashid Trading & Contracting Co, Al Ayuni Investment and Contracting Co, Al Harbi Trading & Contracting Co Limited, Arabian Bemco Contracting Co, Al Shoula Group, Almabani General Contractors, ABV Rock Group etc. The list is dominated by family run firms like Saudi Bin Laden Group and Saudi Oger both secure large construction projects from contractors and international companies.

Saudi Arabia Office Furniture Market: Trends

• Growing Infrastructure Development boosting the Market – The future vision of Saudi Arabia will ensure that the region becomes a financial center with lot of infrastructure development and progression taking place. The region is witnessing lot of commercial infrastructure development which has become a trend and will also grow in the future.
• Growing Domestic Spending Accelerating the Market – Domestic Spending is increasing has become the trend of the day. Increase spending will lead to greater demand for infrastructure development both for commercial and residential as well.
• Foreign players focusing on the Saudi Arabian Furniture industry to develop their business and opportunities in the region. They would like to enter the market and expand their product portfolio and double their business.

Saudi Arabia Office Furniture Market Segmentation Analysis

By Sector Type, The organized sector dominates the office furniture as retailers operating under this segment deal with high quality and designer products manufactured by MDF or solid wood during the year 2018-2019. The unorganized segment on the other hand captured the remaining market share in terms of market revenue during the year 2018.The unorganized sector brands rely on the price of the material whereby they tend to compromise on the quality of the product. Also, the unorganized brands obtain raw materials and labor locally. However, the organized players often get furniture and furnishings imported.

By Material Type, Wood has been observed as the most used material and is very useful for daily furniture in Saudi Arabia along with dominant market share to the overall market revenue in 2018-2019. People prefer wood furniture due to its properties; wood is sturdy, cheap, higher durability and represents a classic beauty and sense of living. The other reason why people do not prefer wood is due to the fact it is very expensive as compared to the other latest materials. The remaining market share was captured by glass, metal, plastic and other segment in 2018.

Home Office: This segment is very large because most of the homes have an home office now involving people spending long hours on the computer, these people are prime targets for needing ergonomic equipment’s. Since these offices are also at home, they are more chances of money being spent on nicer furniture and equipment they can use for both home and work purposes.

Small Business Managers: Most small businesses have a manager in charge of equipment purchasing decision. Usually at some point these people have an employee who suffers from ergonomic equipment. People can be educated on the benefits of ergonomically –sound workplace. They are usually are pretty careful with their money as small businesses try to keep their costs low. This is a good market especially locally because these businesses often support other local small businesses.

Large Business Purchase Mangers: Large Business usually has purchase manager whose sole job is making equipment’s and supply purchases. It is usually hard to reach these managers but fewer larger businesses; they make for very lucrative accounts. The ergonomic industry is growing at a great pace. As the use of computer increases in offices, people are experiencing lot of health issues all day long. The ailments can really vary but the knowledge of ergonomic products is growing as people realize these problems exit. The ergonomic product manufacturing industry is also growing as more companies are putting out new products for cheaper prices. Work chairs aims to sell locally to small and large businesses while also serving those two markets and the home office furniture market on the web.

Players Specific Data (Product Launch, International and Domestic Players Dominance, Sales Distribution)

Product Launch

Steelcase has recently launched Umami, a new office furniture system, comprising of lounge, table screen and technology components that can link a variety of configurations. Additionally the sculpted design, seat depth provides a high level of performance and comfort for the workers. The people want to have a purposeful meaning to the place where they work. People want to feel the connection to the places where they work; they can feel themselves in the space rather than something that is imposed upon them. Informal spaces promote social interactions, stimulate the brain and enhance creativity. As per Steelcase, the workforce does not have the environment to socialize so that they can have informal relaxed conversations with their colleagues. Umami‘s flexible, modular designs can create settings unique to the organizations and individuals.

Domestic and International Players Dominance in Office Furniture Market

Aflak Furniture is a leading office furniture systems in Saudi Arabia. They provide contemporary office furniture that aims to provide the most comfortable working environment with space saving designs. Al Asfour Furniture became the leading Trading Establishments that offers a wide range of Home and Office Furniture, Draperies, Carpets and Home Accessories in the Eastern Province of Saudi Arabia, having a well-known and reputed showrooms in 3 major cities: Safwa, Dammam and Khobar. Al-malaz, Abdallah Al-naeem ST.

Saudi Arabia Office Furniture Market: Sales Distribution Data

The region aggregate furniture demand amounts to USD 4.60 billion at production prices; yet it is worth stressing that each country has its own peculiarities. Their economies can rely on huge oil and gas reserves and feature fast growing construction sectors, with great prospects of profits for furniture exporters, both in the low and high end markets. Egypt displays a dynamic furniture industry, which has proven more and more successful in the international markets thanks to skilled labor force and improving business management. The Lebanese furniture industry entered a recovery path and can count on a growing domestic market as well as the geographical and cultural proximity to other Middle East markets. Israel displays a high developed furniture industry, with western standards as regards technology and management. Moreover, furniture production and consumption have steady increased in the last years on the wake of the general economic growth. In 2018, Office Furniture sales increased by 4.90% in comparison to 2017 and reached USD 109.00 billion. The Office Furniture segment includes among other things computer desks and swivel chairs for the office, and workspace storage units. In 2023, the worldwide Office Furniture segment revenue is forecast to reach approximately USD133.00 billion, a steady increase from about US$109 billion in 2018.

Import of good is USD 130,825 million, Exports of goods is USD 218,174 million.

Foreign Trade -61.70 % of GDP.

Revenue from Steel case in 2019 is USD 3.40 billion. Total revenue from Midea is USD 39.47 Billion. E-commerce in Saudi Arabia is growing and is estimated to reach 10,864 Million USD in 2020 from 5,894 Million USD in 2015. Saudi Arabia is USD 9784 million and in 2020 USD $10,864 million. Revenue from office furniture is USD 1284.40 million in 2019 and 32% are Saudi s.In 2019 12 were men and in 2019 women were 4.

Latest News in Office Furniture Market

Steelcase is up to coming the traditional and modern office to create an elegant style office in Saudi Arabia. A shift took place when the nation was eager for the change, change that maintained the rich values of Saudi culture with an inspiring and innovative vision. The room where the meeting was held changed by changing the color. With several applications for different work modes in one place, a progressive design could enhance the space and will make a change. They were planning to brighten up the private office by changing the traditional materials and styles with a modern take. Instead of gold, shiny they used neutral tones and evoke a sense of luxurious. The office feels like a home and its warm environment that gives a comfortable space to the visitors while emitting elegance and luxury.

Key Market Players of Saudi Arabia Office Furniture Market

The key prominent players profiled in the report are

• Alawi Tunsi & Bros Co,
• United Home Trading,
• Three Palm Trees Trading Co,
• Tannha United Co,
• Diyar Tech Trading Est.,
• Al Fyaselh Trading Est.,
• Green Signal Est.,
• First Impression,
• Wefal International,
• Sun power Factory,
• Alawi Tunsi Est.,
• Riyadh House,
• Abanomay Furniture,
• Modern Age Wooden Work and Contractor,
• First Impression,
• RHE,
• Round Office,
• Al Jedaie,
• Al-Jedaie Fabrics and Furniture Co,
• Al Rugaib,
• Al-Aamer Furniture,
• Casa D’ Argento,
• Riyadh Furniture Industries Co,
• Saudi Modern Factory and Wardeh Saleyhiya
• Okamura Corporation,
• HNI Corporation,
• Herman Miller,
• Haworth Inc.,
• Knoll Inc.,
• Kokuyo CO Limited,
• Kimball International,
• 9 to 5 seating,
• Berco Designs etc.

Some of the contract companies profiled in the report are

• Abdullah & Nasser Al Sorayai Co.,
• Al Abdulkader Furniture Co Ltd,
• Al Ajmi House Furniture (Royal Matresses&Divans),
• Al Garousha Factory,
• Al Joaib Furniture Factory,
• Al Kaki Wooden Furniture Factory,
• Al Makateb Co Ltd,
• Al Watan Furniture & Water Cooler Factory,
• Alf Noon Kitchen,
• Alismail Est. for Office System,
• Aljazira Furniture Factory,
• Al-Kadi Decorative Steel Works & Wooden,
• Almona Kitchens,
• Alomar Furniture Factory,
• Ayar,
• Bokhamssen Furniture Factory,
• Fouad & Khalid Al Ansari Company,

• Jeraisy Furniture Factory,
• Modern Furniture Factory,
• National Est. for Metal & Chrome Furniture,
• Riyadh Furniture Industries,
• Seating & Office Systems Industries Ltd,
• Steelcase Jeraisy Ltd,
• Tannah United Company Ltd

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Our Report Covers:

• The report includes Office Furniture Manufacturers, OEMs, Distributors & Brands Outlook (Market Competition & Regional Presence), Business Strategy & Financial Analysis of Major Players. Further, the study also covers the Industry Insights (Future Trends & Forecast Data), Online Retailing and End User Analysis (Sales from Different End Use Sectors)
• Market Size (USD Billion), Market Share (%), CAGR (%), Y-O-Y Growth Rate (%) of United States Office Furniture Industry and further it bifurcated into States.
• Sales Data of Office Furniture : By Each Product Type & Size, By End Users (B2B & B2C), By Brands, By Models, By Distribution Models, By Countries (Volume & Value), 2019-2035
• Sales Outlook by Various Channels: By Channel Type (Stand-alone Stores, Flagship Stores, Brand Outlets, Multi-Brand Outlets, Specialty Outlets, Hypermarkets, Online Channels, etc.)
• Manufacturing/Production of Office Furniture: By Manufacturers Type (OEMs, OBMs & ODMs), Production Data (By Machinery Type, By Countries), Manufacturing Capacity, Operational Margins, Distribution Analysis, etc.
• Market Dynamics : Growth Drivers, Challenges, Opportunities, Trends, SWOT Analysis, PESTLE Analysis, Pricing Patterns
• Trade Data (Export & Import) : By Each Product Type & By Demand, 2019-2035
• Supply & Demand Analysis, 2019-2035
• Target & Potential Markets, By Major Countries
• Saudi Arabia Smart Office Furniture Industry Outlook : Current & Future Outlook, 2019-2035
• Saudi Arabia Office Furniture Industry Analysis (Manufacturers, Brands, New Products, Product Mapping, Investments, Pricing Pattern, Business Models, Annual Spending, Sales Channels Outlook, etc.)
• The study provides an in-depth analysis with current and future trends to elucidate the imminent investment pockets in the market.
• Current and future trends are outlined to determine the overall attractiveness of the market and single out profitable trends to gain a stronger foothold in the market.
• Quantitative analysis of the current market and forecast from 2019-2035 is provided to showcase the financial competency of the market.
• Drivers and opportunities are evaluated to highlight the top factors responsible for market growth. Various segments are carefully evaluated to gauge the potential of the market.
• Porter’s Five Forces Model and SWOT analysis of the industry illustrate the potency of the buyers & suppliers participating in the market.

Competitive Outlook of major players of the Saudi Arabia market as well as local market to understand the current business scenario and to understand the complexity and investment related factors.