Al Aqili Furnishings (AAF), the flooring and interior solutions giant in the Middle East region, said the company is set to expand its operations in Abu Dhabi and Doha with major openings slated for later this year.

The group has also registered a positive first half with over Dh140 million ($37 million) win in contracts for projects around the GCC as well as having successfully completed two high profile projects – the Al Masa Real Estate headquarters and Al Aqili Distribution headquarters – collectively worth over Dh30 million, said its top official.

“We had a great start to 2010 - we wrapped up work on the Burj Khalifa in time for its launch and witnessed the restarting of several projects. Currently there are over 1,200 projects out there estimated at $418 billion and we intend to be a major part of these developments,” remarked Shahriar Khodjasteh, group marketing director, AAF.

The company also conducted an internal review assessing the health of the regional furnishings industry and the level of growth experienced by key sectors, including flooring, fabrics, furniture, lighting and turn-key solutions, since the start of 2010.

"Although the market reading showed that Dubai will continue to be the major focus market, Abu Dhabi and Doha are catching up fast and have become key areas of development and investment for the interiors solutions industry, especially over the last year," he noted.

In Dubai, most major projects slated for 2010 – like the Burj Khalifa and Meydan - got completed as the procurement and development funds were strategically phased and allocated in advance.

Projects that were put on hold in 2009 went through a value engineering process to streamline costs and were re-started following corrective processes that sifted the economically viable projects from those that were not, he added.

According to Khodjasteh, another development was the predominance of cost-effective quality brands over luxury options.

In line with its development strategy, the company also expanded its range of suppliers to include a wide spectrum in pricing, he said.

“We have a group of dynamic suppliers who responded to the new conditions by developing cost-effective products that don’t compromise on quality. By offering value-for-money as well as a world-class quality we are well-positioned to cater to constantly evolving consumer preferences and stay at the top of the game,” said Khodjasteh. 

The review estimated that the correction brought on by the global economic crisis has led to an  earnest adoption of global best practices, gradually leading to increased optimism in the industry and better relations between suppliers, banks, clients and investors.

"We went through a phase of exponential growth in 2006 - 2008 – a time of heavy investments and mega-projects. The global recession changed that and several companies have reassessed their projects and have reduced operational costs to cope with the new environment."

"The long-term approach involving the streamlining of processes and increasing efficiency has led to a more robust industry with better defenses against market fluctuations," said Khodjasteh.

Al Aqili rang in 2010 with contracts for the much anticipated One and Only Royal Mirage on the Palm Jumeirah, Khalid Al Attar Tower, the Park View hotel in Dubai and the Moevenpick’s four towers of furnished apartments in Abu Dhabi, and the JAL Resort in Fujeirah, in addition to the Doha Bank headquarters in Qatar, he stated.

The flooring division alone notched up a turnover of Dh16 million ($4.3 million) in March 2010, Khodjasteh added.-TradeArabia News Service