Boston, MA -- (SBWIRE) -- 08/11/2014 -- Home improvement remains a niche home and garden category in the United Arab Emirates, for a number of reasons. First, professional maintenance services are widely available and for this reason consumers tend to prefer not to do their own DIY tasks themselves. The category is mainly the preserve of Western expatriates who are familiar with DIY activities from their home countries. However, with numerous home improvement companies widening their retail distribution through expansion into grocery retailers channels, awareness of home improvement among Arab and Asian expatriates is rising, boosting growth in home improvement during 2013.

Furthermore, with rising cost of contracting home decoration and maintenance services, the popularity of DIY home improvement is burgeoning as consumers are becoming more willing to carry out these tasks themselves. Furthermore, the growing rate of home ownership in the United Arab Emirates means that many consumers are becoming more willing to spend money on home improvement tools which help them to keep their homes in good condition.

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Competitive Landscape:

Al-Futtaim Group LLC, the owner of the Ikea brand, maintained its leading position in home improvement in the United Arab Emirates in 2013 with a 10% value share. Ikea is a very well-known retail brand among the majority of the United Arab Emirates' expatriate population due to the brand's global reach. Ikea also offers a wide product range in bathroom and sanitaryware, decorating sundries, floor covering, kitchen sinks and other home improvement.

One of the key attractions of Ikea is the affordable prices at which it offers home improvement products, making them very popular among low-mid income earners. Furthermore, Al-Futtaim Group LLC's Ace retail brand accounted for a further 5% of value sales in home improvement during 2013. This was mainly due to the strong presence of its Ace and Projex private label lines in hand tools. The affordable prices of this private label line continued to attract a wide customer base during 2013.

Furthermore, with demand for home paint growing in the United Arab Emirates, the presence of the Ace and Clark Kensington private label lines in decorative paint and other home improvement benefited Al-Futtaim Group's performance during 2013.

Industry Prospects:

Consistent economic recovery is expected in the United Arab Emirates during the forecast period, with the country's hosting of Expo 2020 expected to contribute to the sustained growth anticipated in home improvement. Higher income levels mean that the category's leading brands are more likely to benefit from consumers trading up to premium brands, with mainly middle-high income consumers abandoning unbranded products imported from China for branded products in categories such as hand tools. Home decor is also expected to grow in importance and this is expected to benefit home paint during the forecast period.