Living in the UAE, Italy is all around us — from the flashy cars we see on the roads to the furnishings we adorn our houses with. It’s in the clothes we wear and the food we eat.
GN Focus examines five sectors of the Italian economy — food, renewable energy, furniture, jewellery, fashion and health care — that add to la dolce vita (a life of pleasure and luxury) here in the emirates.
Furniture
Italy is the world’s fourth largest producer and fifth largest exporter of furniture, according to CSIL Market Research. The historical leader in the global furniture market commands great respect from industry - the annual Milan Furniture Week is considered the world’s most important, and another longstanding event, wood and furniture technology fair Xylexpo, recently concluded its 24th edition, also in Milan. Organisers say Italian industry was represented at Xylexpo by 300 companies who jointly reported a €1.5 billion turnover in 2013, representing 17 per cent of total global production.
When critic and curator Justin McGuirk recently described his sofa-purchasing experience in Dezeen, he had only fulsome praise for Italy: “This bastion of post-war design values – of craftsmanship combined with industry – seems to be the only place offering options that are well-made and comfortable, without looking too ridiculous or costing the same as a BMW.” McGuirk’s sentiments reverberate across the world, as The ‘Made in Italy’ label evokes high regard among discerning retailers and consumers - with no exception in the UAE.
“There is always a halo around ‘Made in Italy’ lifestyle products, particularly Italian furniture,” explains Gianni Sharrouf, Director of Poltrona Frau Group at PF Emirates. “Italian furniture offers a wide range of products for a multitude of types and tastes - from the classic, neo-classic and baroque-like furniture to vintage, retro, modern and contemporary designs – and most high-end brands are present in the UAE through agents, distributors or retailers.
“There is a clear preference for Emiratis and expatriates alike to own at least one piece of Italian furniture, if not for the entire interiors of their homes and offices,” adds Sharrouf.
In November, 34 Italian interior and design companies participated in the third edition of the Italian Luxury Interiors exhibition in Dubai. Authorities said the first half of 2013 marked a 40 per cent growth in furniture trade from Italy, and that the UAE’s booming construction continues to present business opportunities for Italian furniture makers.
Fashion
Italy’s prowess and prospects in fashion draw from its premium materials: silk from Como, leather from Tuscany and wool from Biella are globally acclaimed. Although numbers have declined in the last two years, Camera Nazionale della Moda Italiana (CNMI) says exports will spur Italy’s fashion industry back to growth this year, rising 5.4 per cent to touch an expected € 62.5 billion by the end of 2014.
Industry body Sistema Moda Italia (SMI) also forecasts growth in 2014. Concurrently, Euromonitor International’s November edition of Apparel in Italy commends Italy’s ecological fashion sense. “The Italian apparel industry is rapidly moving towards a more environmentally sustainable position. Several brands now engage with consumers by using environmentally friendly materials and engaging in more recycling.”
Although it may not have the same clout on the global fashion scene as it once did, the ‘glamour factor’ continues to command Italy’s sartorial sensibilities. Many of Italy’s fashion designers and dynasties were in attendance alongside Prime Minister Matteo Renzi, when London’s Victoria and Albert Museum recently opened an exhibition showcasing this fundamental facet, ‘The Glamour of Italian Fashion 1945–2014’.
In the UAE too, it was an undeniably glamorous event when Vogue Italia partnered with Dubai Mall last year to present Vogue Fashion Dubai Experience, bringing together an unprecedented 250 fashion brands. Italian brands are prominent and promising in the UAE, even in an arbitrary example: premium fashion brand Gaudi has already opened two stores in Dubai this year, with a third imminent in Abu Dhabi, and two more planned by December. Stefano Bonacini, CEO and Owner, Gaudi Italy, explains: “The Middle East has risen to the forefront as a rapidly emerging market in terms of fashion retailing. Dubai specifically is the standard bearer.”
Healthcare
Business analyst Espicom Business Intelligence says the Italian medical device market will continue with sluggish growth from an estimated $9.1 billion in 2013 to $9.7 billion by 2018. “This makes Italy one of the slowest growing markets in the world and reflects the ongoing debt crisis and the financial difficulties of the Italian health service,” says the report.
On the other hand, Italy is making much progress in medical diagnostics and diagnostic imaging, with globally renowned names like Diasorin, Esaote, Bracco, Labco, Hospitex and Sentinel. In her recent speech, Neelie Kroes, Vice-President of the European Commission’s Digital Agenda also praised Italy’s prowess in electronic healthcare. “New tools could fix well-known problems faced by health systems. For example, in Italy, eHealth tools have saved €1 in every nine spent on healthcare.”
Late last year, Abu Dhabi’s Burjeel Hospital hosted Carlo Calenda – Italy’s Deputy Minister of Economic Development, Giorgio Starace - Italy’s Ambassador to the UAE, and 57 Italian delegates in a bid to solidify business ties in healthcare. Burjeel’s Managing Director, Dr. Shamsheer Vayalil, spoke of promising business opportunities for Italian companies within the UAE’s fast-growing healthcare sector: “There is great potential for growth, with demand rising for high quality healthcare. We are extremely glad to host the Italian delegation to explore and enhance economic cooperation between our nations.”
In Dubai, Italy’s best representation in healthcare is arguably the London Centre for Aesthetic Surgery (LCAS), and the Drs. Viel, who are among the world’s most recognised and respected plastic surgeons. The twins have pioneered many procedures in aesthetic surgery, and Dr. Maurizio Viel is permanently based at their clinic in Dubai Healthcare City.
Renewable Energy
Italy met a higher portion of its electricity demand with solar photovoltaic (PV) than any mid-sized to large nation in the world, at 7.0 per cent over the course of 2013, says Solar Server. “When wind, geothermal and hydroelectricity are included, Italy met 40 per cent of electricity demand with renewable energy during April 2014, largely due to higher hydroelectric output coupled with lower demand.”
Although cuts in public incentives have reduced focus on ground-mounted PV, Italy’s renewable energy market remains vital, with increasing interest in wind, geothermal, wave and tidal power; biomass and biogas; and landfill and sewage treatment gas.
While new incentives for renewable energy may be running out in Italy, the UAE is only introducing them now, and Italian players used January’s World Future Energy Summit in Abu Dhabi to explore new business opportunities. “The Emirates are an excellent country to bet on, because they plan to step up their renewable energy use in the coming years,” Building Energy CEO Fabrizio Zago, told ANSAmed. Clean technologies and renewables are enjoying a period of sustained growth in the Gulf area, where they benefit from both public and private-sector interest, the Italian Trade Commission (ICE) added.
Food
According to data from industry association Federalimentare, Italian food exports in 2013 increased 8.1 per cent to reach €26.7 billion. In the first quarter of this year, for the first time, firms exporting foodstuffs overtook those producing for the domestic market. The most exported Italian food products are wine, fresh fruit, cooking oil and pasta. While primary outlets outside of Europe - like the US - partly reaffirm historic trade relations, analysts note that there is significant upturn from emerging markets such as the Middle East, with the UAE posting a 43 per cent growth in early 2013.
“The agri-food sector is growing here, and there is more space for Italian products. The UAE is a promising market, and it is more and more mature in terms of consumer needs,” Ambassador Giorgio Starace told Gulf News in December. Italy’s main exported food products to the UAE are apples and kiwis. Italian food and beverages in the UAE is expected to grow considerably in the coming years, with an increasing number of hotels, most of which feature Italian restaurants.
In August last year, La Molisana made an entry into the region, in association with Dubai’s Wonder Chain Trading. The popular Italian pasta brand has a captivating slogan: ‘100 years, 100 shapes, 100 per cent Made in Italy.’
Jewellery
Although export-focused Italian jewellery is known for its design and quality, it has lost its dominance to lower-priced rivals such as India, China, and Turkey. In response, Italy’s jewellery industry is targeting top-end products where the price of the metal accounts for a lesser part of the value, focusing on design, brand and innovation.
Reuters reports that Italy’s jewellery exports rose 6.9 per cent in value in the first nine months of last year over the same period in 2012, to €4.3 billion euros. Despite a sharp fall in gold prices and a drop in volumes, this was boosted by higher demand from regions such as the Middle East. “The full year of 2013 should confirm these trends and we are upbeat on 2014 since key countries in the Middle East (among others) are showing good growth signs,” Vicenza trade fair’s Managing Director Corrado Facco told the news agency.
Jewellery sales to the UAE, which soaks up almost 22 percent of Italy’s total export production, jumped by 35.4 percent in the first nine months of last year. According to Giovanni Favilli, Italian Consul General in Dubai, the UAE imported €942,991,000 in Italian jewellery between January and September 2013, compared to €696,318,000 over the same period last year.
Less than a month ago, Dubai World Trade Centre (DWTC) signed a joint venture with Italy’s Fiera di Vicenza SpA, and the two entities will host the inaugural Vicenzaoro Dubai event in April next year. The mega jewellery show is designed to serve established and emerging economies in the region and consolidate the UAE’s position as a hub for jewellery trade.
