The thriving flooring and carpet industry in the Middle East
The flooring and carpet industry is thriving in the Middle East region due to a combination of factors such as increased construction activity, rising disposable incomes, and cultural influences that promote the importance of décor and home furnishing. 

Rapid infrastructure development drives demand

One of the major drivers of growth for the flooring and carpet industry in the Middle East has been the rapid pace of infrastructure development taking place across the region. Countries like UAE, Qatar, Saudi Arabia, and Oman have undertaken massive construction projects ranging from new cities, airports, seaports, metro lines, highways, malls, and residential towers. All such new constructions require flooring products in large quantities which has boosted demand. The upcoming Expo 2020 in Dubai and the 2022 FIFA World Cup in Qatar are expected to further accelerate infrastructure investment and construction activity in the near future.

Preferences for natural products

Owing to cultural traditions and religious influences, there is a strong preference for natural flooring products, especially carpets, in Middle East Flooring and Carpet homes. Wool and silk carpets are very popular for their warmth, texture, and ability to complement traditional interior designs. Hand-knotted carpets from Iran, Afghanistan, and other nations are prized possessions and significant purchases for families. Even in modern homes, demand remains high for wool and silk carpets and rugs, especially from premier labels that specialize in heirloom pieces. This preference underpins the thriving hand-knotted carpet industry in the region.

Rise of the luxury vinyl category

While traditional materials like marble, ceramic tiles, and natural wood floors dominate commercial applications, the residential sector is witnessing rising popularity of luxury vinyl tiles and planks that emulate the look of real wood. Factors like easy maintenance, water resistance, and lower costs compared to hardwood are driving more homeowners to opt for luxury vinyl floors. Leading global brands offer a wide assortment of vinyl products in various woodgrain emulations, stone, and tile patterns to satisfy different aesthetic preferences. The Middle East luxury vinyl flooring is projected to grow at over 7% annually through 2024.

Increasing influence of e-commerce

E-commerce is transforming the flooring and carpet retail landscape in the Middle East. Brand websites, online vertical specialists, third-party marketplaces, and multi-category e-retail giants now offer consumers easy access to a vast selection of products from global manufacturers as well as local suppliers. Click-and-mortar operations are becoming the new norm as many brick-and-mortar flooring stores complement their physical showrooms with virtual storefronts to effectively compete against pure-play e-tailers. Online shopping for flooring products is highly convenient and promotes comparison of features, designs, and pricing to aid informed purchase decisions from the comfort of homes. This upward e-commerce trend will likely accelerate further with higher internet penetration across the region.

Rising incomes fuel demand for premium products

The Middle East has witnessed improving economic conditions and living standards over the past decade which has meant substantial disposable income gains for many households. This provides flooring brands opportunities to introduce new premium categories and value-added product lines at higher price points. For example, carbonized bamboo, hardwood floors from exotic tree species, hand-scraped and distressed wood visuals, wool-and-silk designer rugs, luxury marbles and granites are in higher demand among affluent consumers. Brands have also enhanced their ecosystems with complementary installation, refinishing, and repair services to extract ongoing revenue streams from their affluent customer base. Luxury flooring segments like express waterproof bamboo, designer area rugs, and Italian marble are growing most rapidly in high-income countries and territories across the Middle East.

Ongoing export opportunities

Given the expertise gained from servicing the large domestic flooring, several manufacturers from Iran, Turkey, and India are leveraging their experience to establish strong export channels as well. While cultural associations give them an edge in nearby Gulf, these exporters are also finding successes in Africa, Eastern Europe, and parts of Southeast Asia by offering value propositions that factor in subsidies, bulk pricing, and financing support to overcome cost barriers. Two-way trade agreements have further improved Middle East flooring and carpet access for flooring goods with new geographies on the horizon like Afghanistan post its reconstruction and Central Asian nations. Exports will likely sustain the industry's decent growth clip over the medium term while enhancing overall competitiveness as well.

Rising environmental and social concerns

With growing middle classes and changes in consumers' preferences, environmental and social impact aspects are gaining more prominence in the Middle East flooring space too. Traditionally marketed brands now place increased emphasis on responsible sourcing, fair trade practices, and reduced carbon footprint to differentiate their value propositions. Hard flooring manufacturers showcase their “green” credentials through zero-VOC emissions during installations and eco-friendly material compositions of bamboo, recycled content, and FSC-certified wood species. Luxury vinyl and laminate products highlight sustainability certifications along with noise reduction and indoor air quality benefits. On the other hand, hand-knotted rug exporters are promoting fair trade and artisanal employment opportunities in origin countries. Such initiatives will likely define ongoing industry innovations and successful branding in the evolving Middle Eastern.

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