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Middle East home market emerging ceramic exports "treasure"
The Middle East Home Furnishing Market: Emerging Ceramic Export "Pot"
In recent years, European and American countries have launched "anti-dumping" investigations against China's ceramic exports, leading to a continuous decline in the number of Chinese ceramic products being exported. Particularly with the recent EU anti-dumping investigation on daily-use ceramics from China, more companies are now looking for alternative markets. As economies in the Middle East, Africa, and South America continue to grow, the demand for ceramic products has gradually increased, making these regions a new hotspot for the global ceramic industry. The Middle East, in particular, has become a key battleground for Chinese ceramic companies.
The Emerging Export Opportunity with Great Potential
The Middle East region encompasses 24 countries and territories in West Asia and North Africa, including the UAE, Saudi Arabia, Qatar, Libya, Bahrain, Egypt, Iran, Iraq, and Algeria. With a total area of over 15 million square kilometers and a population of around 360 million, this region is strategically located at the crossroads of three continents—Asia, Europe, and Africa. It connects the Atlantic and Indian Oceans, offering excellent transportation access and historical significance as a bridge between East and West.
Historically, the Middle East played a crucial role in trade between China and Europe. The ancient Silk Road began in Chang'an (modern-day Xi'an), passed through Gansu and Xinjiang, and extended into Central Asia and the Middle East, serving as a vital commercial route for exchanges between Asia and Europe. Chinese goods like silk, porcelain, and tea were transported westward, while European items such as wines, exotic animals, spices, and jewelry made their way eastward through the same network.
The Middle East is rich in oil resources but suffers from a lack of fresh water, food, and other essential resources, leading to a single-economy structure. Despite this, it continues to attract global resources due to its economic strength. For example, Dubai imports almost all daily necessities, relying heavily on foreign goods like electronics, clothing, and construction materials.
In recent years, the construction industry in the Middle East has experienced rapid growth. Saudi Arabia plans to invest over $1.102 trillion in 1,026 projects this year, while the UAE’s construction sector is expected to reach $124.9 billion, with building construction accounting for the largest share. Qatar, one of the fastest-growing economies, has allocated $100 billion for development projects ahead of the 2022 World Cup, creating significant demand for building materials, including ceramic tiles. As many Middle Eastern countries continue to expand their infrastructure, the demand for ceramic products remains strong and shows great long-term potential.
Beyond internal demand, the Middle East also plays a major role in regional trade. Its strategic location makes it a key trading hub and re-export center, connecting Asia, Europe, and Africa. Dubai, in particular, serves as a major logistics and trade center, with over 80% of goods entering or leaving the Middle East passing through it. From Dubai, products can be resold across the Gulf, Eastern Europe, Africa, and South Asia, reaching over 1.3 billion people.
Additionally, the Middle East offers favorable policies that make it attractive for foreign businesses. In the UAE, for instance, import duties are only 5%, and there are no additional taxes such as business tax, consumption tax, or income tax. Import and export activities are largely unrestricted, and there is no requirement for administrative approval. Travelers can enter and exit the country without declaring personal belongings.
Notably, the Dubai International Finance Centre (DIFC) is expected to allow transactions with *** this year, marking an important step in the internationalization of *** and offering benefits to foreign businesses, including ceramic companies.
Overall, the Middle East offers a stable socio-political environment, high economic freedom, and low hidden costs and risks. Its modern infrastructure and excellent business environment ensure long-term economic growth and provide security for foreign investors. Once Chinese ceramic companies successfully enter the market, they can operate with confidence.
In conclusion, considering its geographic advantages, transportation accessibility, market size, and supportive policies, the Middle East is a top choice for Chinese ceramic companies expanding into emerging overseas markets.
To win the Middle East market, brand building is essential. Currently, most ceramic products in the region are imported, with many low-to-medium-priced items coming from China. Chinese ceramics, including antique tiles, polished tiles, and glazed tiles, are well accepted by local consumers. Chinese ceramic products already hold a considerable market share in the Middle East. For example, in the UAE, Chinese ceramic tiles compete alongside those from Italy, Spain, Turkey, and Egypt, yet still account for a large portion of the market.
Many Chinese ceramic companies have been operating in the Middle East for years, laying a solid foundation for future growth. One such company is Eastman International Building Materials Group, which has been active in Dubai for over a decade. The company collaborates with several renowned Chinese ceramic brands to create high-end showrooms, establishing Chinese brand presence in key locations such as Sharjah Building Materials Street, Dubai International Ceramics City (ICC), and Dubai Dragon City Tile Center. These spaces showcase premium Chinese ceramic tiles, helping local consumers better understand the quality and design of Chinese products.
However, despite this progress, Chinese ceramic brands still have limited recognition in the Middle East. Many well-known domestic brands remain unknown in the region. As more Chinese ceramic companies shift their focus to the Middle East, building and promoting strong brand identities will become increasingly important. To enter the market on a large scale, Chinese ceramic companies must not only secure partnerships with local distributors but also work to establish their brands, gain consumer trust, and gradually elevate their product value and pricing, setting the stage for sustainable long-term growth.