Construction

US hardwood all the rage as UAE imports rise

November 13, 2024, 2:36 PM

Workers erect scaffolding on a construction site in Manama, Bahrain — Rapid real estate development across the Gulf has led to significant increase in American hardwood imports

Hardwood imports up by 60%
US exports to GCC worth $23m
Environmentally sustainable

The UAE’s imports of US hardwood have spiked dramatically in the first three quarters of this year amid the construction boom in the emirates and neighbouring Saudi Arabia, as well as GCC consumers’ current preference for oak and walnut finishes.

The value of American hardwood lumber sold in the UAE rose from approximately $9.5 million from January to September 2023 to $14.8 million in the first nine months of 2024, or nearly 60 percent year-on-year, according to the latest data from the US Department of Agriculture.

The trade has been on a gradual upward slope since dropping by nearly 50 percent during the 2020 pandemic.

Rapid real estate development from Abu Dhabi to Jeddah, and from Ras Al Khaimah to Riyadh, is behind this growth, says Roderick Wiles, the Dubai-based regional director for Africa, the Middle East, India and Oceania at the American Hardwood Export Council.

“This has led to more specification of wood products, including American hardwoods, for all kinds of projects, be they new or renovations,” Wiles said.

“These include private villas, apartments, shops and shopping malls, public buildings and schools.”

While at face value Saudi Arabia experienced more moderate import growth during the same time, from $4.5 to $5.2 million, the figures might be understating the kingdom’s role in driving sales of American hardwood in the Gulf.

“Large volumes of hardwoods and softwoods enter the UAE for distribution to other GCC markets, as well as for re-export to Iran, East Africa and other countries close by,” Wiles said.

“What we do not know is how much of the American hardwood lumber that is imported and processed in the UAE actually ends up in Saudi Arabia. It may be quite a significant volume.”

Wholesale development in the kingdom only began a few years ago under Vision 2030.

“At the moment, the many huge construction projects in Saudi Arabia are far from entering their final stages, which is when we are likely to see more specification of interior joinery, doors and furniture,” Wiles said.

Its overall exports to the GCC rose from over $17 million in the first three quarters of 2023 to nearly $23 million by the end of September this year. Sales were up in Qatar and Kuwait, but down in Oman and Bahrain.

According to Wiles, annual figures tend to fluctuate significantly in these smaller markets. “When there is a big surge in demand for American hardwood lumber in one of these markets, this is usually because of one large construction project,” he said.

“Additionally, the data is only looking at direct shipments, whereas we know that Qatar, Bahrain and Oman also import American hardwood lumber from the UAE and Saudi Arabia.”

The value of the overall timber market in the Middle East and North Africa is estimated at $2.9 billion this year and expected to grow at an average 9.5 percent annually until 2028.

The UAE’s and Saudi Arabia’s efforts to make their domestic construction industries more environmentally sustainable are seen as likely to further boost demand for timber as an alternative to high-polluting concrete.

China, Malaysia, Indonesia, Canada and Germany are among the other top exporters of wood products to the GCC.