UAE’s Malaysian timber market strongest in the region
National import market more lucrative than Saudi Arabia
The UAE is leading demand for Malaysian timber products in the Middle East.
With a market worth US$200 million, UAE demand for sawn timber, native Malaysian Meranti, MDF and finished furniture products is more than twice that of Saudi Arabia, whose market is valued at $80.5 million.
The figures, produced by the Malaysian Timber Council (MTC) for total trade in 2010, indicate a positive trend for both Malaysian exports and the recovering industry in the Middle East.
“We are very fortunate as our bilateral trade is very strong in most cases,” said council director Khairul Anwar.
“In terms of trade and at a government level there are no trade barriers that we know of,” Anwar continued.
Other key markets are named as: Yemen worth $70.4 million, and Jordan $54.88 million. A report from 2007 shows exports of fiberboard to the UAE were higher than those to China.
“Malaysia produces a lot of native species like Meranti, used for its manageability and durability. We also have strong trade in furniture products, which are well recognised for their strength and value for money. This market is very price sensitive but we have the advantage of being perceived as in between the luxury products of Italy and lower quality products of China,” Anwar added.
The top five Malaysian species exported worldwide are: Balau, Kapur, Red Meranti, Kempas and Keruing. Demand is so strong, the council reports Malaysian authorities have plans to increase production to prevent short supply, with the council currently promoting new species in the region.
Despite the positive growth, the council still cites fluctuations in currency rates between the Malaysian ringgit and the US dollar; inconsistent supply and regional instability as challenging trade ties.
The council was formed in 1992, opening an office in Dubai in 1999 to foster trade ties between Malaysian exporters and locally based designers and contractors. The council’s network comprises five association members, each with 150 trade members.
The body is also partnered with the FSC and Malaysian timber Certification Council for sustainability certification.
The council and a selection of their trade members will be exhibiting at the International Wood and Machinery Show from April 5-7 at Dubai Airport Expo.
