Business & Money | Sunday 29 March, 2015 12:48 am |

Frantic construction work in the Kingdom drives demand for wood products

Al Riyadh, Saudi Arabia, 28 March 2015: The ongoing construction boom in Saudi Arabia has boosted other related industrial sectors, mainly timber. According to organisers of The Dubai WoodShow, to be held from14 to 16 April, 2015, at the Dubai World Trade Centre, wood imports into the Kingdom have been on the rise in recent years and expected to continue unabated in the coming decade.

According to Tropical Timber Market Report in September 2014, the real estate market in Saudi Arabia was valued at more than US$ 0.37 trillion last year and isexpected to top US$0.4 trillion in five years.Currently, the Saudi housing and construction market isgrowing at an annual rate of between 5 and 7 percent dueto high demand for housing development and commercialprojects. Estimates suggest that the Kingdom will needmore than 5 million new housing units across all cities by2020.

In the coming period, Saudi Arabia is predicted to invest more in large projects, such as schools, universities, hospitals and airports. In addition, the tourism sector is developing quickly, while there are also major developments in both the commercial and residential construction sectors. All this activity will lead to demand for imported wood products, including hardwood for interiors, flooring and furniture.

Josine Heijmans, Exhibition Director of the Dubai WoodShow 2015 said: “A buoyant construction sector has led to a healthy demand for wood products in KSA. At Dubai WoodShow hard and soft wood products from all leading producing markets are present allowing exhibitors and visitors to interact and clinch deals onsite.”

As the region’s only dedicated business-to-business meeting place for the wood, wood accessories and woodworking machinery industry, Dubai WoodShow 2015 is expected to attract around 10,000 high quality trade professionals from close to 100 countries.

“KSA’s powerful economic growth is going hand in hand with a sharply higher demand for wood products. However, domestic timber resources cannot satisfy the voracious wood industry demand.The gap between the country’s ability to supply itself with raw materials and an ever­increasing need for wood is continuing to widen. There are several ways to fill this gap, one of which is to enhance local players’ operations and offer them better investment opportunities to expand their business quickly,” added Heijmans.

Over the next few years, KSA's investment in infrastructure will witness unprecedented investments,boosting further the timber trade.

Saudi Arabia is currently importing wood from countries such as Chile, New Zealand, Romania, Canada, Swedenand many other ones. Several exhibitors from thesecountries have already found their place in Dubai WoodShow 2015, targeting more potential buyers from Saudi Arabia.

The exhibition will be held over 3 days from 14 - 16 April 2015 in Za’abeel Hall at the Dubai World Trade Centre.