Minister of Economy, Abdulla bin Touq Al Mari stated, “UAE economy is performing better than expected in regardless of the current global challenges brought about by the COVID-19 pandemic,” following the issuance of the preliminary results of the country’s economic performance by the Federal Competitiveness and Statistics Centre.
The minister also further mentioned that the UAE carry on the policy of economic openness as an approach and practice and is working on implementing a forward-looking vision to enhance its position as a global investment environment.
He added that with the sustained application of the recovery plan and support packages for the economic sectors, the evaluations of the Central Bank of the UAE signpost that the positive growth rates of the national economy will be reinstated by the end of 2021. It estimates a 2.5% in real GDP, and 3.6% in non-oil real GDP. These figures are expected to rise to 3.5 % growth in real GDP, and 3.9% growth in non-oil real GDP in 2022.
The wood industry in the UAE is anticipated to flourish over the next 2 years as the country ramps up construction activities.
According to a study lead by Dubai Tourism, the emirate’s hotel room supply is set to reach 132,000. The UAE's hospitality market is prospective to reach $7.6 billion by 2022, growing at a five-year compound annual growth rate (CAGR) of 8.5% between 2017 and 2022. At present, Dubai’s hotel sector has now more than 100,000 hotel rooms and serviced apartments.
The manufacturers and suppliers of wood products can leverage from the region’s quick-growing market and advance with the rewards of unmatched opportunities generated from the expansion in the UAE’s construction market.
Global wood furniture market is poised for concrete growth over the coming years and is anticipated to top $74 billion by 2023. While the woodworking machinery market worldwide is likely to surge by $961.6 million, stated an expert.
In the US, the wood products function as a vital provider to its economy with the American wood product companies producing $210 billion in products each year.
There is no doubt that the construction industry signifies unparalleled opportunities for all industries, particularly the wood industry, which is expected to get a shot in the arm from the region’s $2.4 trillion worth of construction projects. The expansion in construction activities will continue to initiate demand for wood products, interior decor, woodworking machineries, wood-based accessories and wood flooring materials, all required for the new structures and hotels.