Frankfurt — During interaction with wholesalers in specific from United Arab Emirate’s distributors during Heimtextil show in Frankfurt, expressed that they are waiting for improved market conditions ahead. Shopping during the show was limited as the business confidence is not as in the recent past months.  Emirates furnishing markets always bullish in the past has now turned cautious. The conflict in Iraq, which slowed down the momentum was followed by restrictions on trade with Iran imposed by the West has added to weak market conditions. According to reports trade reports over $4 billion of revenues held abroad is currently blocked from access to the Iranian authorities are likely to be realised will boost the business sentiments further. “The Emirates is a successful export trade hub in the Middle East, which depends on domestic economy development; it is intact but the news happening is in the loss of value of Russian currency. This may have some negative effects as the UAE’s trade of decorative fabrics with the Russian Federation is reduced”, said partner, Subash Asar, BBL Enterprises, LLC, Dubai. Also the Chinese who were dependent on Dubai trade to reach African markets are catering directly ignoring its earlier Dubai base that takes away the market share enjoyed earlier by UAE furnishing community.  But hopes are alive that withdrawal of sanctions and reopening of trade would assure Dubai market to regain the earlier glory. New residential projects in UAE continue to grow and hotel projects add to steady demand of Decorative Furnishings, he added. ‘However Expo 2020 Dubai is a positive happening  and is likely to attract 25 million visitors, 70 percent of which will be from overseas that would boost  the demand  of  decorative fabrics.  The import of European furnishings for fancy villas, ultra luxury homes is steady and will continue in the niche market segment, added further Subash. Subash Asar (right) and Renuka Asar, partners BBL Enterprises, LLC, Dubai

China, a major supplier, is facing its new problem from January 2015 as its credit limits are squeezed from its bankers. “According to my suppliers, their credit facilities have been cut between 30-60% and they fear as to how long they can stay in business”, said Subash, Chinese suppliers who work on very low profit margin must re-strategize their way of conducting business as lately Turkey and India have been able to compete with Chinese prices but Chinese suppliers are not realizing this fact . Credit squeeze is an additional problem, which can become serious and many small and even medium level Chinese exporters may have to wind up their business observed Subash. It is also known to business circles that borrowing money from private lenders in China, which carry a very high interest rate, can be suicidal.

Visit to Heimtextile was more a ritual than dozens of earlier trips to Ishwar Bharwani, Partner, Ultra Furnishing Fabrics, a leading whole seller in Dubai.  ‘This time at  Heimtextile, I was more watchful and focussed more on searching for new fabrics than placing orders’, said Bharwani. In UAE in the recent year’s entry barriers to begin retailing home furnishings has become easy and a small outlet that can hold a dozen sample books can start the business and the global exporters are in queue to book the orders. UAE market has about 30 wholesalers and 700-750 retailers. Those who can hold more sample books with small storage area can become wholesalers too. ‘The business is steady but the inventory levels with most in the business are adding up and we are very cautious to add new stocks but is engaged in reducing the inventory’, said Bharwani further. Another large importer and distributor who requested anonymity said UAE markets, which depend on neighbouring global markets as well as local business ( limited but steady) is forcing the exporters on limiting the stocks in ware house and is waiting for improved  conditions. Ishwar Bharwani